A few years ago we wondered where all the money went with Where Is The Money. It still resonates today.
The auto business requires cubic amounts of money to function, operate, generate results. Some things never change through the years.
Specifically credit powers sales, especially in Canada, where we have seen a robust sales increase during the past few years...powered by banks enabling credit.
At the retail level money is scarcer, and scarcer as the years go by, with a myriad of ramifications. You can fill in your own blanks and comments.
Have the advantage to move money around, while taking advantage of group results. Most folks focus on the sales results, overlooking the various benefits of moving money around at the group level.
Having access to money, enables manufacturers to offer aggressive leasing terms, assuming residual risks. Remember when a few manufacturers could no longer raise money to lease vehicles?
Credit facilities enable the financing of inventories at the dealer level. Especially new vehicle inventories.
Are all the folks, stakeholders, in the auto business aligned to make money? Some areas of this business continue to struggle to arrive at optimum alignment, and dealing with disruption.