Transparency in the Auto Business?

By L. James Johnson · February 11, 2009 · Filed in Auto Industry

We are coming out of a decade or more of toxic business practices where hidden motivations and shady conduct led to abuse and mistrust. Enron led the way –  followed by the financial crisis, and subsequent economic meltdown.

Like a pendulum swinging in the opposite direction to counteract the imbalance, there are forces at work in government and business that are offering a new direction that includes the simple concept of transparency – what I think of as an eagerness to openly communicate instead of bamboozle, stonewall and deceive.

I joined an online seminar* yesterday and was pleasantly surprised to hear that transparency has been making its way into the auto industry for at least a couple of years. When I joined the industry just over 2 years ago I was appalled at some of the old school manipulation that was still being practiced. In fact, I continue to hear of car sales staff conveniently forgetting to return their customer’s driver’s licenses or vehicle registrations so their client is forced to return to the dealership before buying a vehicle somewhere else. To some, the end justifies the means.

Such practices have historically been driven from the top down. What I heard from Scott Mony, the head of Social Media for the Ford Motor Company, is that he and others in leadership positions in the industry are actively championing transparency in more and more aspects of relating to consumers and the public. Having top company officials regularly blog is one way that this is happening. And as Mony said, “…using real dialogue and not acting like a corporate shill,” is needed to have such blogs retain any significance with the reader. This is a welcome top down approach.

Mony said that social media – from Twitter to bloggers – are helping those in leadership positions change the way they communicate. The truth is, this is a process that will take time and effort before significant change manifests at the dealer level, which is where I work, and where most of my customers interact.  

Yet, I am glad that transparancy has at least  begun to unfold in such a dinosauresque industry as this. It’s a beginning, and it feels supportive to those of us who daily practice a different – and dare I say, transparent way of doing business. 

*Why Your Company Can’t Ignore Social Marketing: Lessons Learned from the Auto Industry featuring Scott Monty, Sylvia Marino, and Christopher Barger hosted by Powered.com.

Comments

James – the auto industry has been one of industries failing to capitalize on social media in an effective way, especially at the local dealership level. I look forward to insights and applicaiton

Hey dad!

In some ways I can’t believe that you are cooler than I am with social networking! Although I did get you onto Facebook. :) Keep up the good work, in actually helping people, and being a great example of business and integrity walking hand in hand.

I’ve had a few bad experiences at dealerships and now try to deal only with Internet departments. Even then I need to be careful. Sounds like you try to be fair. It would be nice if that became the norm and not the exception.

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