Every crisis such as this current pandemic that we are all facing brings out the best or the worst in everybody. The Philippine automotive industry absorbed the first blows of this crisis and yet it brought out its best in mitigating the ill-effects of this pandemic on our economy by being one of the first within the private sector to answer the call of duty donating hundreds and thousands of personal protective equipment to our front liners, delivering critical medicines and supplies to frontline hospitals and transporting our new heroes- our medical health workers to and from work.
Among the first responders to extend its assistance during this time of crisis was The Covenant Car Company Inc. (TCCCI).
Founded in 1 July 2009, TCCCI is practically the new kid on the block as far as the Philippine automotive industry is concerned. I have always admired this company for breathing new life to iconic brands like Chevrolet and Morris Garages (MG). These global brands previously present in the Philippine automotive market made its comeback through TCCCI with Chevrolet in 2009 and MG in 2018. MG made its presence felt as the most successful automotive brand in 2019 by outselling older automotive brands in its first year of operations.
After successfully fulfilling its social responsibility and as a good corporate citizen during this time of crisis, what is next for TCCCI? The automotive industry will be put to test in the next few years due to a slow economic recovery as forecasted by our economic managers. It will be tested by fire after successfully reviving its iconic automotive brands, Chevrolet and MG. But I am very confident that with the able leadership of TCCCI under Atty. Albert Arcilla, the company will pass this test with flying colors.
I have been a keen observer of the Philippine automotive industry for several decades now, having been a part of it for more than 30 years. This crisis is totally different from the others. You will need a long term game plan in order to be one of the last brands standing at the end of this crisis. I am very sure that the men and women of TCCCI are up to this challenge.
Hence, I believe these will be my strategic moves in order to survive this crisis.
Cut out the excess fat. If necessary and wherever applicable, consolidate aftersales service centers of Chevrolet and MG into one. The aftersales revenue of both brands should keep the dealership above water at least for the next two years.
Car sales will be experiencing negative growth for the next two years at the very least. The bright side of this situation is that demand for aftersales service will grow further with car owners seriously maintaining their current vehicles instead of buying new vehicles for the next two years.
Excellent aftersales service will save the day for the car dealership now that new car sales will be at the backburner. Aftersales service performance during this pandemic will be an indicator whether you will survive this crisis once economic recovery is at hand. Car brands who fail in delivering excellent aftersales service during this pandemic will end up victims of this pandemic once the crisis is over!
With the lack in the demand for new cars, all car brands will be offering crazy deals just to convert their current inventories into cash. Jumping into the bandwagon will make the market situation even worse. Repurpose your inventories. Seriously consider forming a transport network vehicle services (TNVS) company that will utilize your current inventories.
Due to medium to long term social distancing compliances, current public transportation companies’ passenger carrying capacity has been slashed by more than 50 percent. And due to the increased online buying activities, there will be a growing demand for delivery vehicles that will transport goods to online buyers.
By building your own TNVS company, you can provide employment to displaced jeepney drivers that have suddenly lost their jobs due to the phase out of the old jeepneys. The MG5 will be perfect for ferrying passengers and the Chevy Colorado pickup truck will be ideal for any logistics run. Brand new MG and Chevrolet vehicles running all over Metro Manila as a result of this repurposing program will surely make a positive brand impression.
I strongly believe in Karma. Good things are bound to happen to those car companies that responded without any reservation to help out our countrymen during this time of crisis. TCCCI through its iconic brands, Chevrolet and Morris Garages showed that they are always ready to answer the call of duty.