With the National Automobile Dealers
Association (NADA) Convention only three days away (at press time), it has been
a bit of a scramble to get the March issue out the door. Happily, I can say we
have one heck of an issue this month, with technology taking center stage.
Now, surveys say that using
an editorial to talk about what’s inside the issue is a waste of the reader’s time.
I guess I’ll have to agree, as Bobit Business Media pays a pretty penny to make
sure its editors know what you readers want to … well … read. I guess I’m going
to break the rules a bit this month, and I truly hope the read isn’t a total
waste of time.
As I mentioned, technology is
really leading the way this month, which is perfect timing as I head off to the
NADA Convention. I’ll definitely have a full report in April. It’s also perfect
timing after I received a couple of e-mails from our readers asking the magazine
to get to the bottom of the computer security snags Automotive News reported
Honda and Reynolds and Reynolds are experiencing.
Unfortunately, getting to the
bottom of this issue isn’t going to happen anytime soon. For one, Honda is
being tight lipped, and Reynolds and Reynolds promised to talk more about its
plans at the NADA show.
To sum up what occurred, Honda
Motor Co. — which is launching a daily parts ordering service for its 1,260
Honda and Acura dealers — asked its dealers last year to allow a software
vendor to extract daily service parts orders. The automaker’s request, however,
was in direct violation of Reynolds and Reynolds’ dealer contract rules, which
prevents unsanctioned vendors from accessing Reynolds-designed dealer systems.
And from reports, Reynolds isn’t going to budge. Other companies aren’t either.
Guys and gals, I have to tell
you that the issue at hand is much bigger than Reynolds and Reynolds and Honda
Motor Co. And truth be told, what’s happening is only the tip of the iceberg of
what this industry faces, with dealerships across the nation being told Guys
and gals, I have to tell you that the issue at hand is much bigger than
Reynolds and Reynolds and Honda Motor Co. that a fully electronic dealership
not only represents the future, but also the key to profitability. If anything,
experts tout technology as another protective layer in today’s regulatory
environment.
Well, that’s why we brought
back Joan Shim, an F&I magazine alum, to check on Asbury Automotive’s venture
toward a totally electronic F&I process. You might remember Shim. She held
my post a couple of years ago. Not to steal her thunder, but, as you’ll read,
automotive dealerships are leading the pace toward this fully electronic
reality. Unfortunately, the pace dealerships are setting has overshot what
lenders and states are ready to do. So give Shim’s story a look.
We don’t stop there, as we
follow up Shim’s story with an article by Allan Stejskal, president of Open Secure
Access Inc., a coalition of automotive retail dealers, and software and service
providers. If you haven’t heard about the coalition, I suggest you visit its
site (opensecureaccess.com) and check out who’s on board with what it’s doing.
It aims to solve the very problem both Honda and Reynolds are experiencing by
setting its own data security guidelines and a vendor certification program.
If you’re looking over the
brochures you picked up from NADA regarding a new DMS, CRM or third party software
tool, read Stejskal’s article before you make any decision. He provides a
couple of questions you need to be asking your potential new vendor, some of
which might keep you out of the situation some Honda and Acura dealers find
themselves in these days.
As you might have noticed,
I’m not about to take sides on the Honda and Reynolds deal. Journalists typically
try to ride the fence, and this is truly an issue that requires an open mind. I
personally think the issue is simply a sign of the times. Technology is certainly
the wave of the future, but have we as an industry laid out the groundwork to
make this all a reality? Or just maybe, all this rumbling between Honda and
Reynolds means the groundwork is still being laid.
At the F&I Conference and
Expo in November, industry insiders predicted that the industry was 12 to 24
months away from e-contracting being ubiquitous. Some are now saying that the
timeframe given referred to how long it’ll take before we see any significant progress.
Roadwork ahead. Expect delays