Last week, a retired college professor walked into Missouri’s Coad Toyota with an interesting proposal. He was willing to part with five first-generation Toyota MR2s as a trade-in for a gently used 2016 Mazda MX-5 Miata.
Considering the amount of maintenance five vintage MR2s must require, maybe he’s not the absolute madman we initially presumed. Since the deal went down in Missouri, he probably spent a ludicrous portion of his time on rust prevention alone. Read More >
This time last year, Lincoln was busy promoting its Experience Centers — storefronts that promote the brand and its products, but don’t serve as active dealerships. Then, in August, it asked around 80 Ford/Lincoln dealerships to commit to building separate Lincoln-only facilities by July. It was an attempt to elevate the premium brand by making it appear more exclusive, akin to what Cadillac attempted with Project Pinnacle and what Hyundai Group wants to achieve with Genesis.
Unfortunately, all of these programs garnered a “mixed response” from dealers. Many complained that the cost of building a separate showroom for higher-end models is prohibitively expensive. That has also been the case with Lincoln. The California New Car Dealers Association even wrote Ford Motor Co. last month, asking it not to punish storefronts that fail to divide their facilities, and it looks as though the automaker has acquiesced. Read More >
As we explained earlier this year, the fledgling Genesis brand is going through puberty. The brand’s constantly evolving dealer strategy is now set in stone, or what passes for it in the world of Genesis, but the process of separating the brand from its Hyundai parent won’t take place overnight. There’s dealers to whittle down, licenses to gain, standalone stores to build, and inventory to stock.
It’s a work in progress, but the 2019 models — which now total three — are beginning to find their way to more buyers, Genesis claims. Be patient. Read More >
The California New Car Dealers Association is requesting that Volvo immediately end its Care by Volvo subscription service within the state. According to the group, the automaker is in violation of California’s franchise and consumer protection laws.
It’s been a long time coming, as Care by Volvo is clearly designed to minimize dealer interactions. Anders Gustafsson, CEO of Volvo Cars of North America, even said the program claimed as much as 15 percent of the XC40 crossovers intended for dealerships this year.
“It’s really the same concerns from everybody, and it’s just that they don’t feel secure,” Gustafsson of said dealers last month. “They’re afraid we’re going to take something away from them … I would say the biggest question mark around subscriptions is that consumers need to decide that. Our retailers are asking, ‘Please let us be involved, because we can help.'”
It looks like they’re tired of begging. Read More >
High-end sports cars are much more likely to endure the onslaught of time that inevitably forces most automobiles into the junkyard. Why such vehicles might not all serve as pampered automotive “investments” for wealthy individuals, most are still well cared for and subject to fewer harsh winters and daily commutes than their mainstream counterparts.
Porsche claims that over 70 percent of all vehicles it has ever manufactured are still in operation today and the majority of those cars reside in the United States, not Europe. As a result, the automaker wants to expand its Porsche Classic operations in the region — helping owners keep their vintage machines in pristine condition while earning dealerships some side cash in the process. Read More >
We’ve told you already that the upcoming Ford Ranger, which hits dealer lots in January, stands to become an endlessly customizable midsize pickup. Reports of options galore cropped up well ahead of the truck’s release.
Now, there’s more news on that front. While the usual factory add-ons will be part of any would-be Ranger owner’s buying decision, Ford doesn’t want those customers to look at another catalogue or website once the vehicle’s sitting in their driveway. The automaker wants buyers to get all of their outdoorsy aftermarket fittings from the dealer. Read More >
Dealership advisory firm Presidio Group has painted a very bleak picture for its clients. With analysts predicting a downturn in auto sales, the company recommends dealers establish a robust 20-year plan that will enable them to perform in the new climate or get out of the business entirely.
Brodie Cobb, founder of Presidio Group, cites a glut of studies claiming dealerships will struggle as manufacturers shift into mobility companies and alternative modes of transportation are more broadly encouraged.
“We’re not particularly pleased that the world is changing the way it is. We would rather have it stay the same, because owning dealerships is a very nice return and profitable business that we enjoy very much,” Cobb told Automotive News in an interview. “So when we talk about this, it hurts us, too. We, too, need to understand the future, form a plan and not just put our head in the sand and hope it goes away.” Read More >
Remember this saga? Earlier this year we told you about All Pro Nissan, yet another entrant into the “Dealers Behaving Badly” file. At the time, the stores – owned by a couple of ex-NFL linebackers and a veteran of the auto industry – were being examined for all kinds of financial chicanery ranging from floorplan irregularities to missing cars.
At the time, it was reported that All Pro Nissan was open but unable to sell or lease vehicles due to “restructuring.” Now, it appears the lights have been turned off for good.
National Automobile Dealers Association chairman Wes Lutz doesn’t have much time for critics who claim traditional car dealers don’t want to sell you an electric vehicle. As EVs boast fewer moving parts and lower running costs, green car advocates often say dealerships view the vehicles as a threat to a business model that relies heavily on service visits for profit.
Not so, says Lutz. The parts that do move are the ones they profit from. Read More >
For the most part, the major benefit of brand loyalty is not getting into an argument with your family members at the dinner table. Grandpa worked for General Motors, Dad buys Chevy exclusively, and you decided not to buck the trend. You even bragged about Aunt Beth helping you get a sweet deal on that new Malibu, while everyone nodded in approval between bites of turkey.
However, there are more tangible rewards for sticking with a singular auto brand. Now that the Western market has surpassed peak growth, manufacturers know that it’s going to be a lot harder to reel in new customers. They’ve decided to shift tactics by offering incentives to existing customers in the hopes that they won’t leave them the next time they need a fresh vehicle. Read More >
A major product shift and looming job cuts have some Ford dealers nervous about the future. Many would like to know what to expect under their showroom lights in the coming years, and this week brings an opportunity for the automaker to ease those worries.
Under Hackett’s leadership, communication often seems to take a backseat to vision, so the annual Ford dealer meet-up in Las Vegas brings with it high expectations of a great game of show and tell. Read More >
You may recall news from earlier this year of All Pro Nissan and its associated dealers, most of whom starred in Episode #4391 of the seemingly never-ending series titled “Dealers Behaving Badly.”
At the time, the entities – owned in part by a consortium of former NFL players – were being taken to task by the captive finance arms of Nissan and Hyundai over allegations that parts of the dealer group sold hundreds of vehicles, worth more than $10 million, out of trust and also failed to repay floorplan loans.
So what’s the punishment for these alleged misdeeds? Why, another brand new dealership, of course!
We told you about the bargain performance coming out of Ohio’s Lebanon Ford back in 2016. At the time, the dealer offered a base Mustang GT manual fitted with a Roush supercharger, good for a (then) Challenger Hellcat-beating 727 horsepower. Drive it away for $39,995, Ford and Roush warranty in hand, the dealer said. And many did.
The fun hasn’t stopped at Lebanon Ford in the ensuing years. There’s still an available Roush package owners can drop into their existing GTs, and buyers can still tell the dealer to hand over a Roush-ified ‘Stang at new car time. Power now stands at 700 hp. If that’s not enough grunt, a recent addition to the LFP (Lebanon Ford Performance) family is the Hellion — a Mustang GT that eschews the supercharged lifestyle in favor of a twin-turbo setup capable of generating 800 hp at the crank.
Should owners feel like swapping out the wastegate spring, power levels in the four-figure range become possible. Price? Again, starting at $39,995. Read More >
Marketing materials aside, visitors to Audi dealers in the near future won’t see much of the new E-Tron crossover. They’ll have to ask about it first, and, if they’re in luck, there’ll be a demonstrator on hand.
Audi’s proceeding cautiously with its mass-market EV. For now, it’s only taking refundable reservations from customers, hoping that keeping the E-Tron out of the normal vehicle flow will help it turn a profit — a problem facing most EVs. Read More >
Hyundai has a problem to solve. Interest rates are on the rise, car buying is on the decline, and it has a newish luxury division forced to share showrooms with its regular models — most of which are moving out of the bargain bin.
However, rather than continue incentivizing the crap out of its vehicles, the automaker has decided to improve its dealership experience. There’s no official word on the amount of hugs Hyundai plans to dole out to prospective buyers, but the automaker does claim it wants to instill a warm fuzzy feeling in its clientele.* Read More >
Recent Comments