Divided World, United Dealers: A Lesson in ResilienceDivided World, United Dealers: A Lesson in Resilience

Pessimists of the world: Take a cue from car dealers.

An Ipsos consumer-behavior survey cites angst rising worldwide. Blame it on war, divisive politics, inflation, social media, big technology, governmental unrest – you name it.

In tracking societal state of mind, “tension is a big one,” says Jennifer Bender, global head of trends and insights for Ipsos, a market research firm.

During a Society of Automotive Analysts presentation, she points to increased tensions between societies, political parties and those referred to as “haves” and “have-nots.” That’s even true among families.

“We’re seeing a divide in which some people don’t want to go to a family gathering” lest it devolves into a partisan shouting match, Bender says.

One group that doesn’t share the negative world view – automotive dealers.

I’ve seen that over years of covering auto retailing. Optimism is a coping skill for successfully participating – and thriving – in the auto industry. That’s because the business can flip from good to bad times as fast as a coin toss.

Dealers keep the power of positive thinking, whether it’s heads or tails.

Sure, dealers gripe about this and that, such as government regulations they see as overreaching or automakers with new initiatives that all but have “terrible idea” written on the bottle in small print.

Auto companies know how to build cars; dealers know how to sell them. It’s called teamwork. It works.

Dealers typically face the crisis du jour by saying: “We’ll get over this” or “Good times will be back.” It’s reassuring when hard times hit.

In the last recession, auto sales fell from 16.2 million in 2007 to 13.4 million in 2008 to a mind-boggling 10.6 million in 2009.

But dealers kept as calm as they could, “It’s just the way we are,” Alan Starling, a Florida dealer, told me during the depths of that debacle.

Optimistically, Mike Maroone, who back then was president of AutoNation, the country’s largest dealer group, spoke of better days ahead when annual vehicle sales would rise again to a “sweet 16 million.” They did and then went on to surpass the 17-million mark for four straight years.

Winston Churchill, prime minister of the United Kingdom between 1940 to 1945 and again from 1951 to 1955, said, “If you are walking through hell, keep walking.”

Dealers ambled through it. When the recession ebbed and sales rose, the 2013 National Automobile Dealers Assn. Chairman David Wescott said: “What a recovery, right?”    

Right.

Dealer optimism isn’t head-in-the-sand. In a business that can get topsy-turvy, it’s a survival skill.

On that topic, the Ipsos consumer survey indicates 9% of polled Americans show interest in learning survival skills to become more self-sufficient. That’s fine, as long as we don’t witness a 1992 Ruby Ridge, ID, standoff repeat. The survey says the obvious: Opinions differ by age group.

For example, when asked if they were overwhelmed by the rapid changes in our world, 71% of Gen Zers said “yes.” Only 29% of Baby Boomers said so. The “seen-it-all” mentality comes with aging.

Some things stay the same, though.

For instance, the Ipsos survey reinforces the premise that personal vehicles represent autonomy and self-expression, especially among Americans.

To get people upbeat about buying a car involves “the power of trust,” Bender says. “As trust becomes more erratic, it becomes more important. Customer experience can enable trust. Or hurt it.”

Dealers help there, she says in response to a WardsAuto Q&A query during her SAA presentation entitled “Forces and Trends Shaping Consumer Behavior.”

“Dealers can generate trust through things like service, customer experience and test drives,” she says. “It’s all about building trust.”

She offers another tip to management: “Engage in transparent communications with employees that reflect their values while being mindful of diverse perspectives.”

Bender urges the auto industry to look at how, in building and selling vehicles, a changing world affects consumer perceptions, feelings and behavior.   

In a world that seems replete with differences, “moments that unite us assume even greater importance,” she says. “Reach across the divide.”

And take a tip from dealers: Stay optimistic. It works.