CARBIZ

We can laugh at the K-car now, but in the mid-80s it was pretty remarkable car. You have to remember what it's competition was. The Escort? The original J-cars? The Datsun 210? LOL! I remember talking to a taxi driver in 1981 about his new K-car and he loved it. A taxi!!! Can you imagine today? I bought a '87 Reliant from a customer in 2000 for $300. The car was spotless. I safetied it for $600 and 3 months later it was rear ended by an Audi. The Audi had to be towed away and I drove the Reliant for another week before the adjustor wrote it off! But they were gutless, that's for sure. But then under 100 hp was the norm for small cars in the early '80s.

But you are forgetting one important fact: YOU ARE AN ENTHUSIAST, MOST PEOPLE DON'T GIVE A $h!, NOR WOULD THEY KNOW. There is an old joke in the biz Customer asks how big is the engine? Salesman hold his hands out about 4 feet apart and replies: "About this big." In fact, it is sometimes fun to mess with the customer who thinks they know everything. I suspect you have had many bad experiences with salespeople because they detect you are not buying, that you maybe just love cars and are kicking tires. I applaud that. When I was a kid, I used to bug all the Ford, Chrysler and GM dealers in North York where I grew up. I used to write to Oshawa and Windsor every year and get tons of brochures. However, because salesmen are paid a COMMISSION for selling something and NOTHING if they don't (which I personally don't agree with - I believe salespeople should be salaried and paid consultants, but that is my opinion) When you are kicking tires and showing off how much you know, that salesperson probably just lost his "up" in sequence and now has to wait an hour for the next one. My store isn't set up that way, but I know many that are. As to the old lady, let me tell you a story when I was new to the biz: A 70 year old lady from a monied address spent 90 minutes of my time, driving a new Intrigue, pouring over it. I was new and eager and just gushed enthusiasm and love for the Intrigue. It was 4:00 on a Friday and she said she wanted to drive it on the highway, which being Toronto and rush hour, we both know would be a waste of time. We sat down, worked some honest numbers and set an appointment for 10 a.m. on MOnday to drive it on the highway. Monday came. 11:00 came. noon came. I finally got hold of her at 1:00 on MOnday. Oh, she said, I already bought an Intrigue on Saturday from another dealer I learned a hard lesson that day. The next guy probably spent 20 minutes with her, knocked off a $100 and she bought it there. She had no intention of coming back Monday. So don't tell me about little old ladies. I assume nothing any more. And as to lying sacks of $h! salesmen: I have wondered which came first, the chicken or the egg? Many salesmen start out honest, eager and psyched, but get beaten down by the lies, deceit and games customers can play. That is why so many of them flush out after 6 months. It is difficult to stay in this business and keep your integrity intact. You either learn how to play the customer's game or get out. I am not cynical. Most days I love this business and am proud of what I do, but it has taken me a long time to build up a customer base and I am proud of having the highest CSI in my dealership. But it has been a long, hard haul.

And experienced salesmen can usually sniff out a smartass and walk away from them. We see those two: people who are only on the lot to discover reasons NOT to buy the product, or who are showing off to their girlfriend/parents, whatever. The real trouble is there is a high wash out rate in this business. It is expensive to properly train someone and many dealers won't do it if they know it won't work out. Think about this: if you work at Blockbuster or anywhere else, you must be paid during training. You also must be paid for every staff meeting (minimum 3 hours here in Ontario). Not so in the car business. It is common practice to hire 3 recruits with full intentions of firing two before their 3 month probation period is up. Frankly, I am amazed that car salesmen never organized a union!

Again, "tons of leaking gaskets" is meaningless, unless compared against the backdrop of how many engines were produced. 10,000 gaskets against 10 million engines is nothing. Of course, it would suck to be the person it happens to, but if your engine is losing coolant and you do nothing about it it is YOUR fault, not GM's. I think part of the problem, and I have said this before, is that Toyota and HOnda, being relative new kids on the block, have trained their customers better. I have seen customers justify $6,000 in repairs on an 8 year old Volvo, yet still call the car a "great" car. Import buyers truly have a different mindset. Think about it: if you deliberately spent $3,000 more for a Corolla than you would have for the same equipped Cavalier, would you not maintain it better? Wash it, wax it, make sure it got to the dealer more often? Because in your mind, you bought a "premium" car. GM is going to catch hell for this, for sure. Already, the bleeding heart Toronto f'ing Star put the gaskets on the front page yesterday - FRONT PAGE. It isn't front page news until proven. The National Post put it in the business section where it belongs. Again, the media is smelling blood and will fan the $h! out of this.......

That's the problem: if you were CEO of Exxon, would you be willing to spend a billion dollars to build a new refinery if you knew the moment it opened the price of your product would fall? I think not. This is where the environmentalists come in - they delay and block the oil companies at every turn. All the oil companies can do is throw up their hands and say, "Sorry, we CAN'T build a new plant." As far as Bush is concerned, he may not be able to do anything about the price of the oil coming out of the ground in Saudi Arabia or Sudan, but something can be done to free up competition at the refinery/retail end. I mean, can you imagine if all the grocery stores in your town put the price of milk and bread up in the morning (by 50 cents a loaf!) and then down at night when mothers are in bed already? Crazy.

The key thing is that the salesperson should know where to GET the information and be happy to do so. Even with GM products, there are so many models, engines, wheelbases...impossible to know it all. Concentrate on what the dealership sells the most of (we've only sold 1 2007 Tahoe so far, but dozens of Aveos!) and know them well. And yeah, most Corvette buyers will know more than I EVER could about their machines....

Out of the tens of millions of these engines that have been produced, how many were effected by this "problem?" That is the real issue. No vehicle is perfect, nor ever could be. As was said above, "premature" is a very difficult word. Toyota bodies rotted and rusted out "prematurely" - remember the mid-80s Tercel hatchbacks? But who defines "premature?"

Sadly, I'm not sure tons of product knowledge means a damn. Our two top salespeople don't know squat - they come to me for info! They can assess people quickly, build bridges and close the deal. A perfect case in point is our #1 used car guy who can sell Nissan, Ford, Chrylser - anything. It is impossible to keep track of all those makes and models, but he does very well. It disturbs me that a lot of salespeople don't try and keep abreast of at least their own products, let alone the competition. I believe things are getting better. I know GM certainly puts on a lot of training seminars, not to mention live satellite feeds to the dealers.

If politicians want to do something meaningful, they should get the environmentalists and NIMBY (Not In My Back Yard) people on the same page to enable new refineries and natural gas ports to be built. Katrina showed how vulnerable America is to one hurricane with most of its refinery capacity on one stretch of beach! Even with current political issues in Africa and elsewhere, the real choke point is refinery capacity. Here, the environmentalists play right into Big Oil's hands by delaying for decades the construction of any new refinery that keeps gasoline and heating oil prices up, too.

What is the difference between a lawyer and a catfish? One is a bottom feeding, scum sucker and the other is a FISH.

My sister's Toyota? She's never had a Toyota. Can you even read? All of the prices I have quoted and horsepower numbers are right off Toyota's labels. I am quoting CANADIAN PRICES and they are directly off Toyota's website. Go on to www.toyota.ca if you don't believe me. If you don't consider $8,000 a big difference, then I'd love to be your accountant. As I said earlier, at least buy a Lexus is you must buy an import! I give Toyota and others their due when they deserve it. I have harped on the point (as has FOG and others) that although Toyota builds decent cars, they don't deserve the free ride they are getting from CR and others. I mean, all things being equal, wouldn't you rather save your neighbors job than send $40,000 to Tokyo?

Polish, your info is BULLS**T. GM service advisors will try and put it through warranty - why would the dealer care? The dealer gets paid either way. In the interest of customer relations, of course they would rather put it through warranty. Of course, GM does audit dealers and with forensic accounting methods will be able to spot a dealer that is being too, shall we say generous, with warranty claims. Every manufacturer has "goodwill" warranty extensions and can even appeal to district level in extraordinary circumstances. However, I know from experience (our company owns two Toyota stores!) that over at Toyota you had better be able to prove the vehicle was dealer maintained if you have a serious problem under warranty. At Ford and GM you can do your own oil changes (although I would not recommend that route) as long as you keep your receipts. FOR A FACT, ONE OF THE MAIN REASONS TOYOTA ENJOYS SUCH A STERLING REPUTATION IS BECAUSE THEY HAVE ALWAYS INSISTED THE VEHICLE BE DEALER MAINTAINED, OR YOU WILL LOSE YOUR WARRANTY. Never hear of Toyota's engine coking problems? The dealers in the States were threatening lawsuits to get Toyota to finally put a power train warranty on the engines! And ever hear of cost of money? $8,000 in a GIC at 2 or 3 % will net another $1,000 in earnings over a 4 or 5 year period, plus the cost savings on servicing (the Impala only needs to go in every 6 months) and generally lower insurance costs on domestics - well, I could go on, but then I am in the business and know what I am talking about. Then again, you must work for Toyota because your HEARSAY and "I used to know two mechanics" bull$h! is the same kind of crap that is sinking GM now! I have been doing this for 9 years and, believe me, the horror stories and crap over at our sister Toyota store is buried very deep, but they have just as many bodies buried there! Toyota builds decent vehicles, to be sure, but it is the unbridled CRAP that import humpers spew about the Big Three that gets my goat. "I used to know...." OMIGOD, I gotta have a drink....................

The 2006 Avalon Touring sedan lists for $43,235 Canadian, including freight and air tax. Standard on this vehicle is leather heated seats, sunroof, HID headlights, 6 pk in-dash Cd changer, 5 spd. auto. The 2006 Impala LTZ lists for $35, 425, including freight and air tax, for a difference of $7,810, not including the $500 gas card from PetroCanada or the $700 "virtual coupon" that is currently on the Impala. So, nearly $8000 difference. Oh, and I added the Bose sound system, leather, sunroof and even put on the 6 pk, just to make both cars equal. Well, I tried to. The IMpala has OnStar and a remote starter as well. Yeah, the Avalon does have a 5spd auto, but its 268 hp @ 6200 rpm and 248 lb ft @ 4700 rpm is really not that much better than the LTZ's 242 hp @ 6,000 rpm and 242 lb ft @ 4,800 rpm. Both engines are rated pretty close. Like I said: pocket the 8 grand, buy a 60" plasma TV or have 3 years of gas for free! THE CHOICE IS YOURS. Or you could just piss your money down the drain and buy the TOYOTA because it is the best, right?

Oh, I forgot to add that the Impala is built in the best plant in North and South America for quality, according to JD Powers, but then I guess that is why the taxis are all driving Impalas and not Avalons!

Creative, you're sure the Avalon has 268? Is that SAE horspower, or what Toyota said? Or didn't you read what the Detroit news had to say about Toyota and Honda lying about their horsepower? People domestic/versus import biases will undoubtedly influence their buying decisions. Every time I see an Avalon go by I just laugh: it looks awkward and unbalanced, especially from the back end. The new Impala, by comparison, is a far better balanced design. I don't find the interior of the LTZ Impala (I wouldn't waste my money on V-8 in a FWD platform) cheap or ugly. I find the plastic in the center stack of the Avalon cheap and ugly. The LTZ in the charcoal (not the lighter grey or beige) is quite classy and modern looking, IMO But if you will base your buying decision on not even having even DRIVEN the vehicle, then that is just SAD. Buy the LTZ and you'll have 3 or 4 years of driving FREE (the $8,000 you saved will buy you 80,000 miles of gasoline! And BTW, try not taking your Avalon to the dealer and see what happens to your warranty down the road.

Okay, a lot of misinformation here. The Aveo is not priced anywhere near the Cobalt. If we are speaking strictly price here, the Aveo with automatic, a/c and Cd (not standard as on the Cobalt and Optra 5) has a MSRP of $15,710 including freight and air tax WARNING: CANADIAN PRICES The Cobalt is $18,255 also including freight and air tax. The Optra 5 equipped the same way is $18, 025. When the Optra sedan existed in Canada, it was a little cheaper but was confusingly priced so that you could not get a/c and automatic in the base vehicle, thus forcing the customer into a loaded vehicle that was priced a little higher than the Cobalt without all those toys. There was too much overlap in size and target market between the Cobalt and Optra sedan. At least the Optra 5 and wagon are different enough that they won't directly compete with the Cobalt. The Optra sedan (of which I am currently driving a 2005 model) has a quieter, smoother ride than the Cobalt. However, the engine is horrible. It is noisy when pressed and delivers AWFUL real world gas mileage with the AWFUL Aisin transmission. Overall, I like the Optra sedan (the interior has a much nicer look than the Cobalt, especially the seats!) but the tranny has to go. It shifts like a damned standard: lurching all around. Clearly, GM didn't know quite what to do with the GM-DAT product when they got it. The Epica got slaughtered when the new Malibu (same size and much greater power/better gas mileage) came out at the same time. They are obviously still sorting things out. The Aveo 5 is surprisingly big on the inside (I am 6'2" and have no problem sittign in the back or front of one) and it rides, handles decently, but again, the automatic is AWFUL and needs to be sorted out. It robs the engine of power and fuel mileage.

Oh, just wait when Japan, China and Korea cash in their IOUs. Who do you think is paying for all the imports Americans are buying? Ironically, the very governments of the companies that are buying America out. DO YOU KNOW WHAT A CURRENT ACCOUNT IS? China has a $200 BILLION dollar (American dollar, not yuan) surplus with the U.S. That means Americans have bought $200 billion more than they have sold to the Chinese. How is this possible? Simple. Treasury bills. American companies, real estate. So not only are jobs being shipped overseas, they are buying up American dollars for FUTURE purchases, which we know won't ever happen, unless a few hundred million Chinese decide to vacation here and use up their surplus! Suck it up! They will allow American and European companies to set up in Asia, as part of "joint ventures," of course, then figure out how to build the products themselves, then ship the exact same products to our shores for a cheaper price. Oops, I'm sorry: I was thinking of electronics in the '70s.

Get out and DRIVE the said vehicles! I had a customer pull up in a brand new Ion on Saturday and he said he had driven the Corolla and it in no way compared to the Ion (his opinion, not mine) or the Cobalt (which I agree with.) This guy, a 26 year old Asian kid, was very meticulous in his buying decision and knew all the research I could throw at him. He admitted he was getting razzed by his friends for buying American but that he felt the Ion was the best of what he had driven last summer. Now he is looking for a car for his mother. I am mentioning this here because I was shocked (and refreshed) by his remarks and his conclusions. Isn't that sad? He knew all about CR and the other crap, but was unmoved and actually made his decision based on unbiased driving experience. He even mentioned that he found the Corolly "tinny" and that it shook over bumps - two impression that I have long had about hat car. If there are more people out there like that, then GM has a chance. The Avalon is obviously a better car than the Corolla, but it is stupidly overpriced. And, really, for the money, wouldn't a BMW5 look better?

This would be more a product of the amazing interest rates and cut rate leases being offered over the past few years. Zero percent financing created two problems, I believe: 1) why put down any money if you don't have to pay interest? 2) more people with flaky credit are attracted to low interest financing. People used to put down 2, 3 or 4 thousand dollars when buying a car. My experience of late has been that is no longer true. If you aren't even paying the taxes (which are a combined 15% in Ontario) then of course you will be "upside down" during the first 30 months or so. It is interesting, too, what people's memory remembers or forgets, depending on the situation. I have had customers tell me," I paid $40,000 for that" when, in fact, they paid $34,000 but then there were taxes, rust proofing, extended warranty, etc. Or there payment is going up and they forgot that last time around they had a trade or put down $5,000. I don't think people are intentionally dishonest, I just think they forget what the true transaction was 4,5 or 6 years ago. Many times I have pulled out people's original deal from years ago to go over the details and they were surprised. I wonder how much of this information becomes distorted when all these fancy surveys are being levied.

GM needs to bring these vehicles to these shores FAST. Opels have been hot for a long time. They will sell very well in Canada where gasoline is almost $5 a gallon now. Under the be-careful-what-you-wish-for department: should Saturn actually get these vehicles without being watered down, it will slaughter Chevrolet up here in the hinterland. I hope GM realizes that, too. Whereas Chevrolet is a power house in the States, the Montana routinely outsold the Venture here and the Sierra outsold the Silverado last year - something that would be unheard of south of the border. If the Opel product goes up against the GM-DAT product, the Chevy dealers will get killed in the crossfire. Pontiac already has the Aveo (Wave) and the Pursuit (Cobalt) on the small car front. With the cool Opel product going over to Saturn, I predict it will be a blood bath for Chevrolet in Canada, especially in the larger markets (Vancouver and Toronto.) Just thought I would point that out.

Yeah, Lutz's comments the other day to the Swedish-Americans was very appropriate: damn the media and Wallstreet. What will they talk about when GM's fortunes rebound in 2007? I would like to see a lot of these guys out of jobs, but I doubt that will happen.

Sorry, my reference for the above quote is from a book (appropriately) called The Japanese Conspiracy by author Marvin Wolf, who lived in Asia for many years in the '70s and '80s. A great read, by the way. Very eye opening. Should send a copy to Bush!

It amazes me how ignorant most North Americans are to what is going on right in their own back yard. Japan Inc is for real. It isn't some conspiracy theory. MITI (MInistry of International Trade and INdustry) is real and formidable. Japan's political system may look like that of the West's, their business models behave much differently. Industrialist Akio Morita, once president of Sony was quoted as saying," militarily we could never defeat the United States, but economically we can overcome the United States and become number one in the world." Japanese companies are routinely forced to buy goods from other Japanese companies, even when cheaper or better foreign goods are offered. MITI brokers rich import quotas (on items like beets, sugar, etc.) to companies to offest their losses when dumping products abroad. This is how Sony, Matsu$h!a, Mitsubishi, Sanyo, Toshiba and Sharp managed to destroy the American television and electronics industry 30 years ago. WAKE UP! I am all for free trade, but our trade with Asia is hardly free trade. Toyota, Honda, etc. enjoy protected markets at home while waging trade wars abroad. Even the Chinese are wary of Japan, whichi is why to this day most foreign contracts are being awarded to American, Dutch, British or German firms, even though Japan is only a couple hundred miles away! I agree that GM and Ford, with the unions as side kicks, have done a lot of stupid things in the past 20 years, but so has Toyota, yet they are getting a free ride with the media. Why is that?

Okay, maybe I just fell off the turnip truck last night, but is it just me or is this a slow news day and yet another GM-hater has lined up a new TOPIC OF THE WEEK to bash GM with. What, is it like GM didn't offer to pay ENOUGH money? I have been following the current events of the day for something like 25 years or so. Never have I ever witnessed such a collective of corporate bashing in my life. THE BAD NEWS, REAL OR CONTRIVED, NEVER SEEMS TO STOP! Talk about pack mentality! If any of this is true (and like Nixon, I believe they are all doing it - he just got caught!), then shame on GM (for getting caught in such an amateurish maneuver when Toyota has been so much better at it for decades!) If this isn't true, then why don't these guys go after someone more deserving, like Enron or something! Or have they already beaten that horse to death?

Toyota and Honda apologists are far too forgiving for vehicles like the Avalon and Ridgeline. I spent some time in both of them recently and was somewhat shocked at the ugly plastic inside. I just don't get the Avalon. Never have. The Camry, at least, is a balanced looking car and is more reasonably priced. I just can't see anybody in their right mind paying $8,000 more for an Avalon over an Impala LTZ. The trunk is unforgivably small. The interior is plasticky. IMO, the outside design is not balanced. I wouldn't call this car ugly, but I would by the Lexus ES over the Avalon any day. Why would one pay $40,000 for a Toyota? At least buy a Lexus!