THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA
Posted on July 30, 2010
THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA
Abstract
The study examined the impact of bank consolidation on automotive industry financing.
61 respondents selected through strategic random sampling technique from GM Motors Nigeria Ltd formed the population for the study.
Data was collected using a survey instrument designed by the researcher. Chi-Square Statistical method was used to test the hypotheses and all findings held at 0.05 alpha significant level. The Analysis of the data revealed that the participants almost unanimously agreed that bank consolidation had impacted positively to the automobile sector in Nigerian economy.
Based on the findings, it was therefore recommended among others things that a regular review of automotive industry in Nigeria by the appropriate authorities while effort should be made to improve the power system (electricity situation) in Nigeria.
INTRODUCTION
Background of the Study
Mergers and acquisitions should be taken seriously as an instrument for enhancing banking efficiency, size, and developmental roles in every economy. Mergers and acquisitions especially in the banking industry is now a global phenomenon.
All over the world and given the role of finance, size has become an important ingredient for success in the globalizing world. The last few years have witnessed the creation of the world’s big banking groups through mergers and acquisitions. The trend has been influenced by factors such as prospects of cost-savings due to economies of scale as well as more efficient allocation of resources, enhanced efficiency in resource allocation, and risk reduction arising from improved management. However, the automotive industry is not left out in the process of alliances. Over the years the industry has witnessed different types of global alliances. For instances Renault- Nissan, VW-Skoda, GM-Daewoo to mention a few them
In the past, the small size of most Nigerian banks, each with expensive headquarters, heavy fixed costs and operating expenses and with bunching of branches in few commercial centers had lead to very high average cost for the industry. This in turn has implications for the cost of intermediation, the spread between deposit and lending rates, and puts undue pressures on banks to engage in sharp practices as means of survival. In an effort to survive the hurdle, the Central Bank of Nigeria introduced the 25 billion Naira minimum capital base for banks in an effort to make our banks much stronger and to able to compete favorably with other banks in the world in providing credit facilities to other sectors of Nigeria economy.
However, in 2004 as part of economic reform in some emerging economies, the Nigerian banking system underwent remarkable change, in terms of the number of institutions, ownership structure, as well as depth and breadth of operations. Banks begin to merge with other banks; while bigger banks begin to acquire smaller ones while automotive industry has become an increasingly pertinent contributor to country’s’ gross domestic product, mainly through strong growth in the motor industries in terms of increasing volume of local production and number of sales. And this is not peculiar to Nigeria alone.
This scenario raises the question “what impact of banks consolidation on automotive industry financing in Nigeria? It is important to envision this evolution from a life cycle of production assembly and sales that have impacted on the financial statements of GM Motors Nig LTD. In order to sustain this process, the automotive industry as a whole requires huge capital intensity from strong and reliable financial back- up to remain viable in the economy and optimize their environmental impact, communicate positive steps to non-governmental organization and other stakeholders to discharge their social corporate responsibilities while maintaining design of product, service system from a sustainability point of view. Hence this work is set to assess the impact of bank consolidation and capital provision for the automotive industry financing in Nigeria (A case study of GM Nigeria ltd)
COOPERATE PROFILE OF GM MOTORS LTD
GM Nigeria is a foremost player in the automotive industry and one of the leading motor vehicle assemblers and marketers in the country. GM Nigeria is a joint venture company between UAC of Nigeria Plc – one of the biggest conglomerates in Nigeria and General Motors Corporation of Detroit, the world’s largest automobile manufacturers. The relationship of these two companies gives them the best support and advantage in all facets of their operations, i.e. Sales, Parts, Services and Assembling.
About GM Global
General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 321,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. GM’s automotive brands are Buick, Cadillac, Chevrolet, GMC, Holden, HUMMER, Oldsmobile, Opel, Pontiac, Saab, Saturn and Vauxhall. In some countries, the GM distribution network also markets vehicles manufactured by GM Daewoo, Isuzu, Subaru and Suzuki
Brief History of GM Motors in Nigeria
1920 – Started as a Company called Miller Brothers Nigeria Limited which imported cars in to West Africa
1927 – Started importing completely assembled Bedford commercial vehicles into Nigeria.
1929 – Became the Motors Department of then UAC, now known as UACN Plc
1931 – Name changed to Niger Motors Limited. Continued importing built vehicles.
1949 – Commercial Vehicles were shipped in as double unit packs which contained partially assembled chassis for two vehicles in one pack and the wheels in the second pack to be assembled locally.
1959 – Established Nigeria’s First Vehicle Assembly Plant at Apapa. The Company assembled the popular Bedford Trucks of various models.
1965 – The Assembly Plant was renamed Federated Motors Industries, Then popularly known as “FMI” and the distribution arm remained “Niger Motors”.
1979 – FMI started the assembly of trucks from “completely knocked down” (CRD) components.
1980 – The Federal Government accorded FMI the “Progressive Vehicle Manufacturer” status, under the Approved User Scheme. This nomenclature was to attest to its high standard and quality products at that period. FMI and Niger Motors were converted into divisions of UACN Plc.
1991 – UACN Plc and General Motors Corporation of USA incorporated GM Nigeria Limited as a Joint Venture Company. The Assets of FMI and Niger Motors were then transferred to GM Nigeria Limited.
Vision
To be number one in the commercial segment of the automotive industry by providing exceptional value to our customers.
Mission
To provide automotive products of such quality as to enable our customers enjoy superior value while delighting other stakeholders
Incorporation and Address
GM Nigeria Limited is incorporated in Nigeria under the Companies & Allied Matters Act 1990 as a private limited liability company, and domiciled in Nigeria. The address of its registered office is:
31, Mobolaji Johnson Street ,
Oregun Ikeja, Lagos .
Principal Activities
The principal activities of the company are: assembly of SKD (Semi Knocked Down) motor components to produce medium and heavy commercial trucks, importation of FBU (Fully Built Unit) pick-ups, marketing and distribution of vehicles through its network or branches and dealers nationwide. The company provides product support for parts and service at its Oregun plant, Port Harcourt branch, Abuja branch and through its numerous Parts and services dealers. The company is also involved in provision of technical training for employees, dealers and fleet customer’s personnel.
The company’s product range includes Isuzu Light, medium and heavy commercial vehicles (all with various body applications).
Shareholding Of Gm Nigeria Ltd
According to the register of members at 31st December, 2007, the following shareholders of the company held more than 10% of the capital issued shared capital of the company:
Shareholder
Number of Shares
Percentage Held (%)
UAC of Nigeria Plc
72,000,000
60
General Motors, USA
36,000,000
30
Staff of GM motors Nigeria 12,000,000 10
Source financial statement GM motors 2007
1.2 STATEMENT OF THE PROBLEM
Serious national efforts towards the development of the automotive industry in Nigeria took place in the early 1970s, with initial joint venture agreements between Peugeot and Volkswagen companies. By 2001, there were over 20 different enterprises manufacturing different types of vehicles, from boats to trucks, including motorcycles and bicycles automobiles in Nigeria. The capacity utilization of the majority of these companies is, however, very low, largely due to the high cost of importing the components needed to assemble vehicles, non government patronage and poor capital base of some of these organizations. By the introduction of the policy of bank consolidation a lot of Nigeria feels that the banking sector will see to the end of this problem. But on the contrary, Nigeria roads are littered with imported second hand vehicle, many of them as old as 10years, as the country is an attractive dumping ground for all kinds of toxic waste while a lot of automotive companies in Nigeria winding up. Hence this study is sets to examine the impact of bank consolidation on automotive financing in Nigeria.
THE OBJECTIVES OF THE STUDY
This study sets out to:
To establish the effects of bank consolidation on capital provision for the automobile sector in Nigeria. To provide a research oriented framework for the development of good understanding of the basic aspects and importance of bank consolidation as it affects automotive industry in any economy. To determine the inherent relationship between bank consolidation and capital provision for the automotive industry Determine the resent increase financial statement of GM motors and the working capital available for the industry
RESEARCH QUESTIONS
The following Research Questions will thus guild this study:
In what way does the bank consolidation affect funding for the automotive industry in Nigeria? What are the benefits that the automotive sector has derive from bank consolidation exercise? To what extent does Banks consolidation provide a vehicle for automotive industry survival in a dynamic business environment? To what extent does bank consolidation enhance growth in the automotive industries? To what extent does the resultant effect of banks consolidation increase the market potential of the automotive industry
STATEMENT OF HYPOTHESES
The following stated research hypotheses will guild this study:
HYPOTHESIS 1
Ho: There is no significant impact of bank consolidation and capital provision for the automotive industry in Nigeria.
H1: There is a significant impact of bank consolidation and capital provision for the automotive industry in Nigeria.
HYPOTHESIS 2
Ho: Banks consolidation do not provides a vehicle for automotive industry survival and growth, in a dynamic business environment.
H1: Banks consolidation provides a vehicle for automotive industry survival in a dynamic business environment.
HYPOTHESIS 3
H0: The effect banks mergers does not increase the market potential of the automotive industry
H1: The effect of banks merger increases the market potential of the automotive industry
1.6 SIGNIFICANCE OF THE STUDY
The research is significant in the following ways: Firstly, it will help investors in the automobile industry to appropriate the opportunities provided by the consolidation exercise in that particular sector.
Secondly, it will further assist entrepreneurs to understand the relevance of consolidation of banks to capital provision and finally, it will serve as useful source of material for researchers and students.
1.7 THE SCOPE/DELIMITATION OF THE STUDY
This Study will be limited to Sixty one staffs of GM motor Nigeria Ltd. It will covers the funding of the automotive industry in Nigeria.
DELIMITATION OF THE STUDY
The study only looked at the impact of bank consolidation on the automotive industry. The population of the study covers only the staff of GM motors Ltd Oregun, Lagos. Therefore, this study may not be generalized.
As the researcher was the sole interviewer and instrument of this study, researcher bias may be possible in any of the interpretations. Though the researcher worked hard to keep out any personal opinions, the possibility of subjectivity may still be present.
Also, it is possible that respondents didnt give accurate information about their operations in other to maintain some level of social dignity. Human Resources manager of the organization also had to answer interview questions from the researcher. This provided a certain level of uncomfortableness and uncertainty as he was worried that he may be judged by his responses. And finally the dearth of literature materials in the automobile sector also was a major challenge
Summary of Findings
This work examined the impacts of banks consolidation on automotive industry financing, using G.M Motor Ltd as a case study. Sixty copies of questionnaires were distributed, fifty one were returned giving 85% response rate. The results of the findings show that: consolidation have provided a vehicle for automotive industry survival and growth in a dynamic business environment.
Again, automotive industry seems to grow due to banks consolidation that can provide huge capital requirement in case of expansion through new products development or acquisition of small automotive companies and this is usually a strategy to form global alliances designed to monopolize and expand the brand image when merger occur and achieve in some cases political power. Furthermore, banks consolidation provides a vehicle for automotive industry’s’ corporate survival and growth in a dynamic financial environment as it boosts the strength of automotive industry and thus it enhances automotive industry’s financial capacity. Also the results showed that banks merger provides economies of scale and achieve some form of synergy for the automotive industry and the resultant impact of banks consolidation increases the market potential of the automotive industry.
The research also revealed that banks consolidation result in a higher market price and higher earnings per share coupled with improvements in its stability though opinion is divided as to whether the dividend before and after automotive industry alliances cannot be maintained after the consolidation in order for the market price of the automotives stock to be established.
Banks consolidation seems to increase corporate power and improve market share in some cases, resulting in a higher price earning ratio. The work also showed that bank consolidation aids the automotive industry in financing that would not otherwise be possible to obtain, which helps to achieve some synergistic effect without strong bank’s financial capital base.
Also revealed by the study is the fact that banks Consolidation brings about adverse automotive industry financial sustainable effects because the anticipated benefits did not materialize for expected cost reductions were not forthcoming hence it should result in higher earnings or improve its stability. Furthermore, the findings showed that banks merger is vested in automotive industry ability to foster growth and the resultant profitability which will otherwise be difficult and nearly be impossible without banks strong capitalization
Conclusion
Nigerian’s automobile industry is one of the continent’s fastest growing sectors, but it lacks the necessary local technology and finance to fully harness its potential and contribute to national growth and development. This state of affairs has ensured that investing in the sector has become the preserve of just a few foreign companies in the automobile sector, largely based outside of the continent. Bank Consolidation introduced in Nigeria in 2005, is an expression of strong desire of Nigeria government to reinforce an instrument for enhancing banking efficiency, size, and developmental roles in her economy. It is pertinent to know that this exercise has assisted the automaker industry to raise capital that may be require in times of boom as well as depression and successful entry into products market as well as into new geographical markets in Nigeria. The primary purpose of corporate entities has been to increase the financial and operational strength. Banks, consolidation has helped in playing important roles of supporting the real sector like automotive industry in a global context hence banks have remained a new phenomenon in financing big projects in automotive industry in the corporate business world.
Outside the capital provision the automobile sector in Nigeria has also experienced a lot much neglect than other sectors ( Abiodun 2008). In seeking to achieve success in this sector vigorous efforts should be made to counter some of this factors which are known to have hindered achievement in this sector in the past like; power, local content policy and restriction on the importation of cars which can be locally assembled here. Effort should be made to sustain this little improvement that has been recorded in this sector as result of bank consolidation.
RECOMMENDATION
Based on the findings from the study and the facts at the disposal of the researchers, the following recommendations are made
Regular and study review of the automotive parts/components development industry in Nigeria by the appropriate authorities Government should provide incentive measures to encourage the local auto makers for ensuring compliance with approved local programmes; The right of inspection and other quality assurance activities in factories, ports and roads in pursuance of minimum standard of automobile on Nigeria Roads by the appropriate authorities Regular evaluation of the pricing structure and quality of the products of the assembly plants to ensure international competitiveness; Forecasting the demand and supply patterns for various types of automotive vehicles produced in Nigeria and the basic raw material requirements by the appropriate authorities The automobile sector should liaise with relevant organisations charged with the production of raw materials (such as sheet metal alloy and special steel) and make sure is available when needed
Finally, The Nigerian government as a matter of urgency should articulate policies that can promote the development of local technology. Basic technical capacities which should include discouraging imports of completely built up units, providing incentives to local assemblers to increase local content in production (tax reduction and subsidies) and regulations to ensure local content in varying percentages.
Get Cheap Discount Car Insurance for Teens – Get the Best Cheap Rate for Your 18 Year Old
Posted on July 29, 2010
Get Cheap Discount Car Insurance for Teens – Get the Best Cheap Rate for Your 18 Year Old
When your teenager becomes of age and they want to start driving it is important that they get the proper automotive car insurance so that they are covered in case they get into an accident. If you add your teenage age son or daughter to your insurance it is going to make your premium go up but there are things that can help you keep cost down.
Learn how to find: Discount Car Insurance
It is important to understand that insuring a teen is a greater risk for the insurance companies because the young teenager is much more likely to be in an accident or to get driving tickets. By nature a young person just starting to drive will speed and do things that a older more mature driver will not. With cell phones attached to teenagers ears they are more likely to be distracted while driving and have a greater risk of being in an accident because of it.
Get some Advice about: Types of Insurance
Some of the things that will help keep your premiums down to a minimum is if your teenage child has a good driving record this will help because insurance companies reward people who have proven to be good drivers. Also if your child has good grades at school this can also get a reduced rate because the insurance company figures they are more likely to be a good driver as well.
When looking for Discount Car insurance for your 18 year old teenager it is always best if you talk with them about being a good driver and how important it is to be safe on the road.
Finding Car Accessories on the Web
Posted on July 28, 2010
Finding Car Accessories on the Web
Searching for the right car or truck accessories can be daunting, especially if you have a vision of what you want for your vehicle but aren’t exactly sure where to look for it. Enjoythedrive.com is one website that has devoted itself to just this task, simplifying finding a truck and auto accessories for any make or model. Their motto says it all: “Customize your vehicle for the way you live.”
The website enjoythedrive.com was created by the Specialty Equipment Market Association (SEMA) as an educational research tool for automotive improvements. It can help you with anything from automobile safety devices to custom car accessories. Although they don’t sell any items online, they offer friendly, courteous, and professional advice that can help you choose the best tuck accessories for your vehicle.
Enjoythedrive.com is easy to navigate and they make it simple to search for information on truck accessories. Search areas such as “I Drive…,” “I Use My Vehicle For…,” and “Let’s Improve…” provide a starting point and a way to narrow down the choices of car and truck accessories. Each page on the site has articles, reviews, and links for current products, tips on installations, and information regarding local laws.
Within the various sections are several custom car accessory options that will fit your vehicle and a list of suppliers for these items. For example, clicking on “Let’s Improve Play Time” will lead you to a short article that asks the question, “What do you like to do?” Selecting Mobile Entertainment System, enjoythedrive.com will narrow down your search further by asking relevant questions. The site gives you an array of choices by simply clicking a button.
At first, the site may appear disorganized, but anyone seeking car and truck accessories will find that it is truly a treasury of information. Along with its search feature being user-friendly, information on the website is clear.
However, this resource has so much more to offer. If you are unable to find what it is you’re looking for, or if there are problems in general with your vehicle, you can find the SEMA Expert’s Advice on the right hand side. This is an absolute must-see. Skilled professionals who are members of SEMA usually give advice and help you make the right choices when searching for truck accessories.
To find the company that made that great custom car accessory you saw on TV, the “Who Makes It?” section will direct you. It is an all-encompassing list of 800 SEMA member manufacturers. This information may seem massive in certain selections, especially when taking into consideration the number of businesses that will come up if your description is too generalized. At any rate, this website will do its best to direct you to the manufacturer’s truck accessories you seek.
If you’re looking for a user-friendly site to help get you started on the road to custom car accessories, or if you just want to know more about your car and the law, then Enjoytheride.com is the place for you. Finding truck accessories as well as solid information has never been easier or more informative.
Automotive Industry in Latin America – IT Market Assessment
Posted on July 27, 2010
Automotive Industry in Latin America – IT Market Assessment
Global energy polices and high fuel prices are driving automakers in Latin America towards being environment friendly. Favored by governmental support, research and development, abundance of raw materials, automakers in potential markets such as Brazil, Peru and Columbia have begun to increase the use of ethanol as alternate fuel to reduce costs and environmental impact. Automakers in the region have begun to manufacture ethanol-driven hybrid-electric vehicles (HEVs) and vehicles based on flex-fuels and have begun to revamp production processes to reduce costs and carbon footprints.
In addition, driven by increasing presence of international automakers, varying market conditions such as improving economic conditions in markets such as Argentina, Chile and Peru, currency appreciation in large markets such as Brazil, slowdown in the US economy affecting markets such as Mexico due to its geographic proximity to the country, automakers in Latin America have begun to develop differential pricing and promotional strategies to maintain demand levels and remain competitive.
The report forecasts the IT spending of the automotive industry in Latin America over the period 2007-2010. It is meant for IT vendors and intends to help them identify selling opportunities in the automotive industry in Latin America. The report identifies key business issues being faced by the automotive industry in Latin America.
Further, the identified sales drivers can be used to penetrate these accounts or increase current share of the customer’s wallet. Also, the report lists leading IT buyers and provides their brief company profile, along with their IT spending.
TechNavio Insights is a set of reports based on TechNavio – a market intelligence platform for the IT industry. It builds on the intelligence available within TechNavio, and leverages on the custom research experience of the ‘Technology Navigators’. TechNavio is built on years of experience of Infiniti Research in deep dive custom research and consulting for over 30 Fortune 500 companies and numerous large and mid-sized companies.
Table of Contents :
1. IT Spending and Forecast
2. Criticality Score
2.1 Evaluating Criticality Score
3. IT Sales Drivers
3.1 Being Environmental Friendly
3.2 Capacity Expansion
3.3 Collaborations & Partnerships
3.4 Dynamic Pricing, Promotion & Product Customization
3.5 Global, Integrated Supply Chain
3.6 Lean, Agile & Flexible Manufacturing
3.7 Maintaining Quality Standards
3.8 Product Mix Expansion
3.9 Time-to-Market
3.10 Understanding Customer Needs
4. Key Customers
4.1 Fiat SpA
4.1.1 Business Overview
4.1.2 Key Figures
4.1.3 Corporate Headquarters
4.1.4 IT Spending
4.2 Ford Motor
4.2.1 Business Overview
4.2.2 Key Figures
4.2.3 Corporate Headquarters
4.2.4 IT Spending
4.3 General Motors Corporation
4.3.1 Business Overview
4.3.2 Key Figures
4.3.3 Corporate Headquarters
4.3.4 IT Spending
4.4 Volkswagen AG
4.4.1 Business Overview
4.4.2 Key Figures
4.4.3 Corporate Headquarters
4.4.4 IT Spending
4.5 Toyota Motor Corporation
4.5.1 Business Overview
4.5.2 Key Figures
4.5.3 Corporate Headquarters
4.5.4 IT Spending
Other Reports in this Series
List of Exhibits
Exhibit 1.1: Latin America Automotive IT Spending and Forecast 2007-2010 (In $ million)
Exhibit 2.1: Calculations for Estimating Criticality Score
Exhibit 2.2: Criticality Scores for Various Software Applications
Exhibit 2.3: Criticality Scores for Various Hardware Products
Exhibit 2.4: Criticality Scores for Various IT Services
Click Here For more Information
Ignore The Hype: Blu-Ray Car DVD Players Are Not On Peoples’ Radars
Posted on July 26, 2010
Ignore The Hype: Blu-Ray Car DVD Players Are Not On Peoples’ Radars
The end may be coming for the standard DVD but don’t think that Blu Rays will have superseded them within a week.
This is especially true for car DVD players.
Blu Ray car DVD players are too expensive, the discs themselves cost too much, and there isn’t enough of a trade up for the average consumer to make the switch.
So if people aren’t looking for Blu-Ray car DVD players what do they want?
So what would people like to see in their automotive car DVD units?
If asked most people are on the lookout for:
* Improved image and sound quality
* Additional sub woofers
* Widescreen displays (16:9 ratio)
* Less energy consumption
* GPS mapping capabilities
* Bluetooth connectivity
If you are selling on eBay or any other ecommerce network your best bet, based on best selling car DVD units is to focus on units with GPS.
A lot of consumers want a unit with GPS capable multimedia!
In fact Blu-Ray capable players have a limited market and an unsteady future when compared to GPS capable units.
Since the DVD player is in a car and comes with an ample sized screen it doesn’t take a fortune teller to work out that most people will want to put a map on the screen.
So when it comes to selling car DVD players online forget about blu ray for the moment and focus on GPS and watch your business soar.
See some car DVD players that are guaranteed to fly out the door. Visit Chinavasion.com or paste this URL into your address bar: http://www.chinavasion.com/index.php/cName/car-dvd-players/
Car Accessories
Posted on July 25, 2010
Car Accessories
Using car accessories for your vehicle is a way many people personalize their vehicles to add a special touch that only they can give it. The choice of car accessories is up to the individual and will usually give a “uniqueness and personality” to the car. The more unique the item, the better the result you will have. It really makes no difference why you choose to add certain thing to your vehicle; the fact is you will love each one of them.
These accessories may be inexpensive or some can also be very costly. First, we will discuss the inexpensive ones. These fall into the category of things such as bumper stickers, bobble head dolls, and items that usually cost or less to purchase. Bumper stickers are a great way to express your true feelings or opinions about a particular topic. They can be funny or about serious issues such as war and politics. However you choose to display them, it seems this is the one true way no one faults you for being yourself. Bobble head dolls and hula dolls are a great centerpiece for your back window. If you are a sports fan, there are bobble heads that are created for you to support your favorite teams. They cause those seeing them to start shaking their heads to the movement of the bobble head and laughing at themselves. It is great to know your choice of car accessory brings smiles to the faces of other drivers. What a great way to make someone’s day.
Have you seen the great designs in flooring mats available? You can decide on whether you want to show off your favorite animated character. For the boys choices in team emblem floor mats and camouflage are available. For the girls, choices in princess designs in multitudes of pink and your favorite ladybug or butterfly can be found to truly personalize your vehicle. It seems car accessories can be like decorating a bedroom, once you find a theme; you will have no problems finding everything to match including the air fresheners. They come in many designs to definitely match those floor mat designs and seat covers. Not only will you have a wonderfully put together car but one that smells great also.
For those who want to spend quite a bit more customizing your vehicle, there are choices in electronics. This might be colorful lighting, electronics for expressing your music tastes, DVD players for not missing out on your favorite shows or for occupying your kids on a long trip, video game systems to do the same, and the ever necessary GPS system to prevent getting lost. The ones listed above are mainly for the comfort of those in the vehicle. They are not great for the driver but beneficial for the passengers.
Colorful light shows in the many neon colors and shapes are great for passerby’s to enjoy but be sure they are not so great they are distracting. For those who choose to install a GPS system, know you will be shelling out some serious cash. Know it may cost as little as a couple hundred dollars or as much as two thousand dollars but you will be able to have directions with the push of a button.
It makes no difference how you choose to personalize your vehicle with car accessories except that you have a great time in the process. Make sure you get exactly what you want so you will be able to sit back and enjoy the ride.
Role of Internet Marketing in Automotive Industry
Posted on July 24, 2010
Role of Internet Marketing in Automotive Industry
In recent times, many retail businesses are considering Internet marketing as their preferred marketing solution to reach consumers. Many businesses consider taking their business online an issue with Internet Marketing. However, it’s about understanding, and utilizing current marketing trends effectively to enhance a business’s web presence. With Internet marketing, automotive businesses can take their services to higher levels.
Role of Internet marketing in automotive industry
When it comes to the automotive industry, Internet marketing plays a huge roll.
• 24/7 services: Internet marketing brings 24/7 services to your business. As soon as you implement Internet marketing, your services are on air 24 hours a day, 7 days a week. Your services are made available to everyone through various Internet marketing methods like SEO, PPC, and Local search marketing etc.
• Cost effective and flexible: Marketing for any automotive company through traditional media is expensive and the length of time your ad is visible to your consumer is limited. It is different when it comes to Internet marketing. Internet Marketing is cost effective and stays visible for longer periods of time and also appeals to a wider audience. This helps your automobile business reach both your existing and potential customers more effectively.
• Improve credibility: Your website is an online representation of your business and it is your mouthpiece. All information about the company, and its products, are available on the website. Internet marketing provides your customers a place to read information about your business & services
• High returns on investments: Costs of Internet marketing for your business are significantly lower when compared to the costs traditional offline marketing methods; such as TV, radio, and print. Internet marketing can represent your automobile business in a better way too. You can laser-target your audience very specifically based on multiple categories such as zip code & city. This means, ROI for Internet marketing is far better when compared to offline marketing, which works on mass marketing basis.
• Two way communicative marketing: Anyone who searches for an automobile online should find your website in no time through online marketing. Search Engines provide an insight on how your potential customers are searching for services and their response to the various marketing methods you apply. There is two-way communication between you and your customers through Internet marketing unlike traditional marketing.
Add value and satisfaction: Internet marketing adds value to your automobile business with its tailor made solutions that are suitable for you. There is great satisfaction knowing the result of each penny you spend on Internet marketing.
Your automobile business can achieve measurable and immediate results by implementing Internet marketing. Internet marketing can help make your website easy-to-find, user-friendly, and convert leads.