Every now and again, a visionary shows up. Boy, could we use someone like that today.
Over the weekend we got mulling over a comment one of our sales reps came back with last week. Business is hit and miss for retailers these days. There is a tremendous amount of uncertainty with all this talk of tariffs, and it would appear banks are a bit gun shy for those earning a living making cars or parts.
Everyone wants the best and that is understood – who wouldn’t? But as one car dealer employee lamented, prices are high and there really is nothing in the inventory to suit tight budgets of the working man.
We were running this concept past a couple friends and without prompting them, they latched onto Lee Iacocca or the K-car. The two names were synonymous though. Iacocca pulled Chrysler from the brink of bankruptcy with his affordable new car and later the legendary mini-van. At the time it was revolutionary and despite naysayers within the industry who predicted sure death, the strategy proved a winner.
After many successful years at Ford developing the Mustang, Continental and Ford Pinto (the last one was a bomb), Iacocca took on the challenge at Chrysler. Although some of our younger readers won’t necessarily know the story, people of a certain age will remember the hype and the booming voice of Iacocca announcing these revolutionary vehicles.
One has to remember the early 80s were a very difficult time. High interest rates – over 20% – and an anemic economy really had people feeling up against it. Leadership is so critical when times are tough. One of Iacocca’s better quotes was, “In times of great stress or adversity, it’s always best to keep busy, to plow your anger and your energy into something positive.”
In very recent times the price of vehicles has shot up tremendously. Consumer appetites have shown disdain for the utilitarian mini-van or compact car. Instead, buyers prefer the SUV or pickup truck, with prices reflecting that preference. As many of those vehicles age and need to be replaced, will consumers be in a position to afford new rates or will price dictate what they purchase?
It strikes us that far too much emphasis is placed one what consumers want, rather than recognizing a pending economic tough time calls for meeting need.
