Automotive News Canada - July 2022 - 9

* JULY 2022
9
When cars are on
order, communication
is really in order
Stores offer car-starved
customers transparency
without promises
By DOUG FIRBY
CALGARY CORRESPONDENT
A RECENT POST FROM A FRUSTRATED
would-be buyer on Kia-Forums.com
speaks volumes.
" We got crazy news today ... My PHEV
EX+ ordered in October, that was supposed
to arrive
in February, that
was first pushed
back between
May and July, is
now pushed back
again to October
BEST PRACTICES
SPOTLIGHT
... [I will] probably cancel my order. "
The poster, who used the name Maxime
Pare, did not respond to a request for an
interview. But the message is clear: Buyer
frustration poses a huge challenge to dealerships
that can't get vehicles as quickly
as buyers want.
Chipman: In a
market where
Scotiabank Lighthouse, 100 Yonge St., 5th
File: CBB AD AUTO Executive Profile 11x7 EN
Trim: 10.875 " x 7.375 " Colurs: CMYK
Bleed: 0.25 "
" every car we
get is sold, "
dealerships
should not make
promises they
can't keep but,
rather, provide
" our best
guess " on a
delivery date.
FILE PHOTO
Floor, Toronto ON, M5C 2W1
But proactive retailers
are relying heavily
on customer relationship
management
(CRM) and other tools
to keep them up to
date on their orders.
" We all have
CRMs, " said
Steve Chipman,
CEO of Winnipegbased
Birchwood
Automotive Group.
Reaching into that
CRM data, each of
Birchwood's stores
conducts " follow-up
Fridays, " during
which every customer
is updated by phone
or text on the status
of his or her order -
even if there is no new
development.
Many customers realize that high-demand
electric vehicles, such as the
Hyundai Ioniq 5, are a year out, Chipman
said.
In mid-June, Jack Carter Chevrolet-Buick-GMC-Corvette in Calgary had about 100
vehicles on order or on the lot, of which 94 had been sold, said managing partner
Jay McKeen. " We're theoretically sold out for two or three years " on premium
vehicles such as the Chevrolet Corvette. PHOTO: JACK CARTER WEBSITE
" The customers have become aware
[that certain models of] cars aren't available, "
he said. " The expectation of having
an immediate vehicle is gone. "
'BEST GUESS' BEATS BAD PROMISE
Workfront#: 2351475
Insertion: July 2022
Birchwood's 22 dealerships, which
sell 21 brands, have about 2,000 vehicles
in total on back order, Chipman said.
Some stores have just 10 cars on the lot.
Chipman has been told that Manitoba will
get just four of the new electric Ford F-150
Lightnings next year, so " we're not even
taking orders on them for now. "
The key, he said, is transparency and
to not make promises that can't be met.
Instead, the dealerships provide " our best
guess " on a delivery date.
Deadline: June 24, 2022
Birchwood has also increased flexibility
by not requiring a deposit on a vehicle
with typical options. That's because if the
customer finds another vehicle elsewhere
during the wait, the dealership will have
little trouble finding a buyer for the one
on order.
" Every car we get is sold, " Chipman
said.
The company's " Dibs " ad campaign
is also adding a little levity to the waiting
process: " If your dream vehicle is not
available, a simple factory ordering process
is now available, " reads a message on
the Birchwood website. " See something
you like? Reserve it while you decide so
you don't lose out. "
Of the 100 or so vehicles that were
on order or on the ground by mid-June
at Jack Carter Chevrolet-Buick-GMCCorvette
in Calgary, 94 were sold, said
managing partner Jay McKeen.
SEE REALISTIC PAGE 31
Left to right: Jennifer Gilbert, VP, Operations; John Kontos, VP, Scotia Dealer Advantage; Anne Marie Desando, VP, Manufacturer Partnerships & Dealer Programs;
John Hiscock, SVP, Automotive Finance; Alain Henry, VP, National Sales; Seana Chadwick, VP, Dealer Finance Centres.
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Automotive News Canada - July 2022

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