Saturday, March 7, 2009

Idea from Cell Phone Companies to Help The Auto Industry

This may sound like an off the wall suggestion, but here it goes........

Almost everyone has a cell phone these days. A lot of us actually signed 2 year contracts to get free cell phones and all you do is pay for service. Basically, the cell phone companies subsidize the cost of the phone with all the monthly payments and features (texting, insurance, data/internet, auto roadside) you add over the 2 year contract. This basically means that they pay for the phone cost up front and make up the difference over the life of your contact. Now, let's take this example and apply it to the auto industry............

The auto industry is struggling and it looks like its not very long before the American automakers go under no matter what kind of bail out they get. Even Nissan and formerly believed untouchable Toyota are closing down dealerships. Now with vehicles, there is always extra costs other than the cost of the car with add ons, including new tires, wiper blades, oil and other fluids, insurance, upgrades stereos, etc.. etc...., but the biggest extra costs that you'll never avoid is gas, auto repairs, and hopefully insurance. So, since auto dealers are having a tough time selling their vehicles, why not work out a deal with the Gas companies (Chevron, Shell, Arco, etc), tire companies, insurance companies, oil change locations, tire companies, and the repair companies where they have customers sign 5-10 year contracts that they get a FREE vehicle, but they have to get gas, insurance, and repairs done mostly at certain locations. Most car loans run from 3-7 years and just think of all the money you spend weekly on gas, monthly on insurance, every few months on repairs and new tires. Like if I get a free pick up truck, by contract I have to get gas at Chevron and get most of my repairs done at the Toyota dealership with some authorized smaller repair chains like Pep Boys and authorized oil changes at Jiffy Lube, plus get my tires replaced at Goodyear. By contract, I'd have to sign up for insurance at AAA (not AA like for some of you fools! LOL).

This way the cost of the vehicle is subsidized by the Auto Dealerships through $$$$$$ via the contracts associated with the supporting gas, tire, oil, repair, etc...... companies. This way the economy is still stimulated because all the affected industries are still being used. In general, the auto industry will have to downsize in order to make this profitable, but they are downsizing anyways because there really is no other choice.

So President Obama, Senators, House Reps, Governors, and Mayors, this is my pitch to help try to save a dying industry. If you take that general concept that cell phone companies have used, it might work. I'm not saying it will, but we need to start thinking outside the box. All these companies want to stay separate, but in order to survive, they better start thinking of collaboration. Besides, I want my free Toyota Tacoma Doublecab pick up truck!!!!

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