Colossol industry changes in the form of globalization, mergers and acquisitions, and management shake-ups over the last 5-6 years have allowed the turnover effect to spread to all corners of the automotive hierarchy, including that office reserved for CEO.
Turnover was once a phenomenon limited to the single most entry-level position within the auto industry, that of the retail salesperson. And to tell you the truth, the most recent industry downshift has actually been better for them. According to the NADA, turnover among sales employees at franchised dealerships actually fell from 2005 to 2006 by a couple of percent. Apparently, when times are a bit slower people tend to shift jobs a bit less frequently.
This is not to say that turnover is low. When they say down a few percent, that means going from around 50% to around 45% or so. This number is found by dividing the total number of salespeople at the dealership by the number of folks who have either quit or been fired. As a benchmark, the US Bureau of Labor pegs turnover among all American workers at about 22%. Yes, salespeople still change jobs more frequently than Lindsay Lohan checks into rehab.
What is surprising, however, is how high the turnover is going. Two of the three domestic OEMs, for example, have CEOs that are not only from other industries but have been on the job for roughly a year (Mullaly - Ford) or less (Nardelli - Chrysler). In the past month alone, some seven top industry execs have left altogether or announced plans to do so. Apparently no one is safe. But if one is clear, if the average guy or gal on the showroom floor can't move the product, eventually it is going to make its way to the top of the latter.
In other manufacturer news, it has been suggested that Daimler may be already floating the idea of finding a new dance partner. Before the ink in the divorce papers is even dry speculators say Daimler may be cozying up to their Bavarian bretheren trying to leverage current projects and synergies into something more than being "just friends." In a move that resembles kissing cousins, Daimler may want to be careful of their image before consumers start thinking that the German exchange student "gets around."
Historically a partnership between these two rivals would be so taboo that is would make a McCoy-Hatfield get together look like a Sunday picnic. It would be about like Pepsi knocking on Coke's door asking if they wanted to go catch a movie. The only difference is that RC Cola hasn't moved in to their territory and eaten their lunch, which is exactly what they Asian brands are threatening. It may actually be a progressive defense mechanism acting on the pricinple that there is strength in numbers. Does this suggest that even the folks a Daimler think that their time holding their own against the non-european competitors may be limited?
If it proves true, it could be a very interesting development indeed. they will have to work on the name though, because Mercedes-BMW just doesn't have a good ring to it.
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