By Dan Armstrong
Wednesday, November 11, 2009 at 3:00 p.m.
Read more: Local, State, Economy, International, National, Politics, Business, Education, Community, Automotive, Consumer, China, U.S., America, American, Auto, Industry, Northwood, University, Training, Dealer, Dealership
Midland's Northwood University is partnering with a Chinese university to train Chinese auto dealers to sell vehicles in China.
Some fear, this will further erode the American auto industry, while others say it'll help sell more American vehicles overseas.
Northwood University's Retail Automotive Management Chairman, Joseph Lescota, says "You hear very little about the quality, integrity, and product value presentation."
He says, American automotive dealerships and foreign dealerships share the same challenges when it comes to selling vehicles.
"Where's the salesman that talked to you about the integrity and the craftsmanship of the vehicle? Did anyone go over the accessories with you? No. They're so busy talking about signing the pieces of paper. The consumers go back home thinking, 'I wonder what that button does?'"
Lescota says the problem with American auto dealerships is that they're always pushing price. Once the dollars become fewer, there's nothing left to sell.
Zero percent financing, trade-in programs, incentives...those are the things Lescota says doesn't sell vehicles.
He says, you don't drive those; you drive the vehicle. Rather than focusing on gimmicks, dealers should focus on marketing.
"GM does build a good car. Ford builds a good car. We just don't know about it, and that's their fault."
Northwood's Cedar Hill, Texas campus has 30 Chinese students enrolled to learn how to better sell vehicles in China's highly competitive market.
"70% of the cars consumed in China are international. The Chinese have choices."
To give you some perspective, both General Motors and Ford sales were up in China for the first half of this year.
GM was up 13%, while Ford was up 21%. Both were down in North America.
Northwood's program will train Chinese dealers how to not only effectively sell vehicles, but how to retain customers.
"Someone who loves Ford F-150s, 85% of -F150 buyers will buy another F-150 not necessarily from the same dealer."
Right now, China is number one for automotive manufacturing.
Northwood says, it wants to capitalize on that market to get more products sold.
*We want to know what you look for when purchasing a vehicle. Is it cost, safety, features, or where it is made? Leave us your comments below. Then tune into NBC25 News at 11:00 pm Wednesday to see if your comments make it on air!
