Reasons against number of car dealers don't add up
#1
08-04-2007, 07:13 AM
Join Date: Oct 2005
Location: Huntsville, AL
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Reasons against number of car dealers don't add up
http://www.freep.com/apps/pbcs.dll/a...2/1068/OPINION
Where have we heard this before . . . Oh yea, the "Dust-to-Dust" report from CNW Marketing. Anyone who is willing to lie for you is willing and able to lie to you. Once again, CNW's methodology are subject to critical inspection. This looks like the pattern of a 'sock puppet' and it will interesting to see what twists and turns show up in the fall.
Bob Wilson
Originally Posted by Detroit_Free_Press
In the June 19 article "Mercedes shows less is more in car sales" (Part 3 of the series "Dealership Overload"), some erroneous assertions were made in calculating "overdealering costs" for Detroit Three manufacturers.
The calculations used a CNW marketing research study that gives estimated cost variances per light vehicle for Detroit Three's support of dealers compared to the average for the top six auto manufacturers by U.S. sales volume. Because the CNW study will not be available until October, no analysis of assumptions can be made. However, what can be stated is that there is a serious flaw in multiplying CNW-estimated per vehicle excess costs times Detroit Three's 2006 sales, and therefore the estimate of a $4-billion "cost of overdealering" is not accurate.
. . .
The calculations used a CNW marketing research study that gives estimated cost variances per light vehicle for Detroit Three's support of dealers compared to the average for the top six auto manufacturers by U.S. sales volume. Because the CNW study will not be available until October, no analysis of assumptions can be made. However, what can be stated is that there is a serious flaw in multiplying CNW-estimated per vehicle excess costs times Detroit Three's 2006 sales, and therefore the estimate of a $4-billion "cost of overdealering" is not accurate.
. . .
Bob Wilson
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