Friday, October 00s to focus on ‘customer satisfaction’ THE THIRD industrial revolution is under way and it is taking place within the automobile industry, says General Motors new vice-president of worldwide purchasing, J. Ignacio Lopez de Arriortua. In a speech to GM's Canadian parts suppliers last month, Lopez maintained that “the solution to today’s economic problems can only be found in new thinking and processes. Conventional solutions no longer work.” He noted that the first industri- al revolution occurred with the in- troduction of textile manufactur- ing machinery and the second with the advent of industrial mass pro- ductien, but that the third, unlike the other iwo, is aot based on technological change. “Rt is a change in management philosophy, and at the core is the customer, Customer satisfaction is the centre of cur efforts to suc- c9eed.”” The trend to customer-driven products has created an entirely new approach to designing, build- ing, marketing, selling and servic- ing automobiles. Some automobile companies can now design and build a pro- duction. car in less than three years. With the increasing use of computer-controlied, re- programmable robots, car manu- facturers can build more than one type of car on one assembly line. In a few years, manufacturers hope to be able to custom-build cars to specific customer orders. — ‘The customer-focused manufacturing concept means producing what the customer needs, in the right amount, at the Tight time with the worid's best quality, service and price,” said pez. _ Lopez’ thoughts are echoed by most other automobile manufac- _ turers, - In announcing the creation of Amati last year, Mazda's new luxury car division, General Man- '. ager Derek W. Miles highlighted customer satisfaction as the guiding principle for all opera- “Reaching this pivotal point has been as much a result of corporate philosophy as it has of market research, design, and enginecr- ing,’ said Miles. ‘‘Simply put, customers will return.to us again Greg AUTOMCOTION and again because we provide a satisfying experience with a car.’’ Many manufacturers are pro- moting the experience of owner- ship rather than emphasizing the sale. Beginning with the 1992 model year, Nissan introduced a new “Satisfaction Commitment,” a comprehensive warranty which Nissan claims matches or beats alli other warranties. The Satisfaction Commitment includes a three year/80,000 kilometre bumper-to-bumper warranty, a six year/160,000 kilometre major component war- ranty, a six year/unlimited mile- @ge corrosion performation war- ranty, a toll-free 800 assistance line, and roadside assistance any- where in North America, in- cluding emergency transportation, free towing, and accommodation and vehicle rental if the owner is deprived of the vehicle due to an accident. Nissan owners can also take advantage of free trip planning, including maps, accommodation directories, and travel informa- tion, . “Iv’s available to anyone who buys any 1992 Nissan vehicle, in- cluding our lowest-priced Sentra sedans and pick-ups, some of them priced under $10,000,”" said John Kalsbeek. Nissan’s Director of Satisfaction. In its first year of operation, Nissar received 36,190 calls to its toll-free information line, most of them generai inquiries about price and specifications of new vehicles, or requests far travel planning. 1,580 calls were for roadside emergencies, 409 for towing, 505 for being locked out of a vehicle, 300 for baitery boosts, 177 for flat tires, 16 for accident assistance, and 13 calls for out- of-fuel delivery. Nissan is not the only one who is instituting so-called ‘‘super- warranties.”” Many luxury car- makers have them, as do General Motors, Volkswagen and Suzuki. But it is in the retail showroom where the biggest challenge to cus- tomer satisfaction ties. Traditional hard-sell selling practices are being replaced by kinder, gentler means. The first certified automobile salesperson'’s diploma course was set up last year by the U.S. Na- tional Automobile Dealer’s Association, with a heavy em- phasis on the ethics of selling cars. Chrysler Corporation recently set up its own “Customer One’? program to improve the customers experience in the showroom. Some luxury carmakers, such as Lexus, advertise that their salespeople will not say anything until asked a question. Most car companies routinely send out questionnaires after the sale to find out if the customer was satisfied with the car and the service they received. Nissan even pays dealers bonuses based on the percentage of customers who report that they are satisfied. The trend to customer satisfac- tion programs can be attributed to two major factors: the intense competition in the automobile sec- tor and a sluggish automobile market. The Association of Interna- TIGER PAW’ A/S ALL-SEASON STEEL-BELTED RADIAL © Good wead life © Penetration sesstance © Good traction © Comforable ride © Good value URISOYAL TIGER PAW All SEASON. R14 ISSISA12 155/SR13 ISSISAID 165ISRIS 175/8GR13 tas/sorna 175/70R13 1asi7eoR1s T6S/7OR14 WwWEeI7OR4 tasi75R14 ISGI7SRIG 2US/75R14 20S5/75Rt5 Z1S/7SRIS R25/75AR15 2335/7ERTS tional Automobile Manufacturers of Canada recently forecast mar- ket growth in the automotive sec- tor of just 1% per year over the next decade between cyclical peaks in North America. The association reported that the slowdown in automobile sales can be attributed to slowing popu- lation growth, particularly in the primary age categories of 35 to In addition, new vehicles are built to last longer, therefore lowering replacement demand. Government regulatory policies are also stymying demand. A variety of regulatory and tax policies related to the environ- ment, fuel, and safety will significantly increase the cost of 9, 1992 ~ North Shore News - 33 purchasing and operating a vehi- cle. With more cars and fewer buyers in the °90s, most automobile sales will be ‘‘con- quest’’ sales —- sales of one automaker at the expense of another. This competitive environment is likely to lead to a greater variety of cars to choose from, improved reliability, better service, and competitive prices. it also means that some automobile companies won’t make it through the Nineties. The price of pleasing the cus- tomer is getting higher and higher, and onty the most competitive and innovative companies are likely to survive. Why Go Anywhere SPECIALIZING IN: : 4 European, Japanese & Dornestic ses WINTER SPECIAL Sa § OSGOV6COSBSECOCOICU88E © WINTER CHECK LIST 3 : HOSES $ WATERPUMP COOLANT LEVEL @ BATTERY @ WINDSHIELO WIPERS S WINDSHIELD WASHER FLUID : ELECTRICAL COLD START S SYSTEM $29.95 Sand BRAKE FLUID 7st tae 6024098094060 03080608 MARINE DRIVE 24080000020 000088 t PEMBERTON $49.95 f 353.95 $57.95 § 1. TUNE UP 4 CYL 5/6 CYL. 8 CYL. 2. OIL CHANGE ON . MOST CARS $19.95 3. 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