And make sure you’ve got a ‘Plan B’
As you read through this magazine, you’ll no doubt recognize that its overriding theme is ‘the year ahead’. Nothing unusual about that. The New Year is a natural time to reflect on and learn from what’s past and look forward and make plans for the future.
It’s also human nature, when looking ahead, to do so with optimism. And this New Year, more than for the past two, there is good reason to be optimistic.
While it wasn’t exactly a boom time, 2010 proved to be a solid year for new-vehicle sales. They were down a bit from the blockbuster times of two and three years ago. But they were better than 2009 and pretty close to the average for the past five years.
Perhaps even better news, if the scuttlebutt we’re hearing is accurate, is the fact that most dealers have not only adapted to this level of sales but addressed past inefficiencies in their businesses and are actually improving profitability.
The big upheavals at the OEM level now seem to be behind us and some stability has returned on that front.
Furthermore, as you’ll see in the report of our roundtable discussion on the year ahead (page 20), there is a strong consensus that sales will continue to improve, albeit moderately, in 2011. So yes, there is reason to be optimistic.
But that doesn’t mean we should be complacent. If the events of the last couple years have taught us anything it is that circumstances can change very quickly.
The waters may seem calm at the moment, but there are forces at work that have the potential to create turmoil. Among them are a naggingly high unemployment rate and a less than robust housing market – both of which can negatively impact the rest of the economy. And beyond our borders, the world economy is still far from stable.
All of which reminds me of what may be the best advice my father ever gave me: “Always have a ‘Plan B’.” Even when things are looking good.
