Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
sara callahan

sara callahan Owner/President

Exclusive Blog Posts

Your Car Repair Shop Should Appeal To Parents Whether It is At a Dealership or Privately Owned

Your Car Repair Shop Should Appeal To Parents Whether It is At a Dealership or Privately Owned

Running an auto repair means that you have to take care of all kinds of details including scheduling, discipline, and customer service. Giving a customer t…

6 more reasons why we MUST move Techs to $40 to $50 an hour soon

6 more reasons why we MUST move Techs to $40 to $50 an hour soon

If you have followed my published articles in the past about retaining Techs (based on being a former dealership Fixed Ops Manager and my 17 years of r…

Auto/Mate Names Patrick Reilly as New Head of Marketing

Auto/Mate Names Patrick Reilly as New Head of Marketing

ALBANY, NY, UNITED STATES, December 5, 2016 /EINPresswire.com/ -- Auto/Mate Dealership Systems announced today that Patrick Reilly has joined its team …

Anyone can be a Bi-Lingual Salesman now

Anyone can be a Bi-Lingual Salesman now

I came across an article today on a piece of new technology developed by Waverly Labs.  It is an earpiece that translates between languages.  My …

Tips For Your Car Dealership Website

Tips For Your Car Dealership Website

The days of only advertising in the phone book for your car dealership are over. Having an online presence is now more important than ever before. The firs…

How Much Is Your Reputation Worth? If You’re Chrysler, Quite a Bit.

On Monday, June 3, Chrysler had a choice to make. The National Highway Traffic Safety Administration asked them to recall 1993-2004 Jeep Grand Cherokees and 2007 Jeep Libertys, according to this article in USA Today.  In this case, Chrysler didn’t agree with the data presented.  Not only that; but due to the reason for the recall; many speculated that Chrysler didn’t know how to fix the problem based on the vehicles’ design.

So now Chrysler had a dilemma. Should they comply with the NHTSA and issue a recall that they believe is based on bad data and which could cost hundreds of millions of dollars. Or should they refuse the recall, take their chances in court and expose themselves to what could be years of bad PR and severe damage to their reputation?

What is an automakers reputation worth? In this age of “safety first,” I would argue that “perception is reality.” A public that perceives a manufacturer’s vehicles to be unsafe will be less inclined to purchase their vehicles. This of course hurts sales across the board, increases ammunition for their competitors and will inevitably cost them market share.

I’m relatively certain that their public relations firm advised them that an event of this magnitude would take years to overcome. Chrysler has rebuilt itself from the brink of bankruptcy in 2009, (with more than a little help from the U.S. Government and taxpayers) to a company that is worth almost $6 billion today. To now turn around and defy the same administration that helped it would be akin to a stab in the back. With Fiat currently owning 58.5% of Chrysler and looking to purchase another 41.5% from the auto worker’s union, the PR damage would extend beyond Chrysler. Fiat intends to merge the two brands, which will create the 7th largest auto-group by sales.

I’m fairly sure that Fiat doesn’t want to begin their purchase with damaged goods.  Even though the recall could end up costing hundreds of millions, that’s nothing compared to the $30 billion+ that Fiat has spent to acquire the remaining percentage that they will soon own.

From a public relations perspective, not only would the refusal to comply with the NHTSA hurt the Chrysler brand; it could also affect the Fiat brand. Fiat is currently the majority stakeholder in the automaker and consumers will inevitably end up equating any negative actions by Chrysler with the Fiat brand and visa-versa.

Hopefully, Chrysler will make the decision to preserve their brand integrity despite the high price tag. Consumer trust is hard to gain but easy to lose.

 Unlock all of the community & features  Join Now