The financial chicanery of a few automotive dealerships continues apace, with a group of Nissan and Hyundai stores finding themselves in several million dollars’ worth of hot water.
Reps for the captive finance arms of those two brands allege that five dealerships owned by auto retail veteran Michael Saporito and former NFL linebackers Jessie Armstead and Antonio Pierce sold nearly $10.5 million worth of vehicles out of trust. Nearly a hundred machines are allegedly missing, as well.
If you noticed your neighbor adding a glistening new Genesis model (the midsized one or the bigger one) to their driveway in the past month, you’re a member of a very small group.
Genesis, the luxury marque born of Hyundai, didn’t sell many vehicles in August, but that’s all part of the plan. The brand’s executive director claims there’s less than a month’s worth of vehicles currently in the U.S., but once those ships arrive, look out. Actually, a better way of phrasing that is: “prepare yourself for things to occur in a gradual and measured fashion.” Read More >
Spring might be a time of renewal, but fall is generally when old gives way to new on dealer lots. Not necessarily, though. If the “new” 2017 Fiat 124 Spider I recently spotted against a backdrop of 2018 Ram 1500s on my local FCA lot is any indicator, some brands have a tough time turning over a new leaf, so to speak. (Fiat’s problem is especially grim compared to other brands.)
Bloated inventories, scattered new model introductions, and a fickle buying public have made “new car season” less apparent than ever, and the problem seems to be growing worse. Read More >
The never-ending, weirdly symbiotic, and often counterproductive relationship between OEMs and their dealers wrote another chapter yesterday, as a court in California may force GM to rethink the way it measures and administers sales effectiveness at the dealer level.
Sacramento-area dealer Folsom Chevrolet was deemed by The General as having failed to meet sales expectations and pursued the revocation of its franchise a couple of years ago. Folsom was having none of it, dragging the state’s New Motor Vehicle Board into the fight — an entity which handed down its decision in Folsom’s favor on August 13th. GM remains unhappy.
Remind me again how the dealer model is such a good idea?
There’s a popular notion that young people are ruining the automotive industry. It probably has something to do with the steady climb of average transaction prices and a median income for millennials that’s comparatively worse than that of their parents at a similar age. Plenty of evidence exists that younger individuals aren’t particularly fond of the car-buying experience.
They don’t seem particularly fond of the car selling experience, either. Millennials account for nearly 60 percent of dealer hires but shops lose over half of them every year, according to a study by the management firm Hireology. That’s an impressively high turnover rate that probably isn’t helping turn around stagnating car sales, as it takes a while to master any profession. Read More >
The Reagor Dykes Auto Group was formed in 2006 after Bart Reagor, shown above, teamed up with a business partner to create a company that now eclipses half a billion dollars in annual sales. This is accomplished through a myriad of manufacturer franchises ranging from Ford to Chevy to Toyota, not to mention its dozen or so rooftops dealing solely in used cars.
Now, the company is facing allegations of major financial chicanery. In court documents filed last week, Ford Motor Company accuses Reagor Dykes of running one of the “largest floor-plan financing frauds in the history of the United States.”
The product pipeline is already in place, but what about the dealerships? That’s where Lincoln Motor Company’s focus now lies, as it begins rolling out a plan that will see standalone Lincoln dealerships pop up in 30 high-volume markets.
As the premium brand attempts to shuffle off sliding sales with a utility vehicle onslaught, the brand wants those high-rising vehicles shown off on well-lit runways encased in glass cubes. Lincoln calls this design “Vitrine.” It’s not just important to the brand — it’s “critical.” Read More >
We told you yesterday of the hurdles facing the fledgling Genesis brand, a standalone luxury marque launched two years ago under the umbrella of Hyundai Motor Group. Currently, just two models reside in the Genesis stable — the midsize G80 and full-size G90, with the 3 Series-fighting G70 bowing later this year.
It’s been a slow, measured start for the brand, but a shifting strategy for its U.S. dealer network means these early days haven’t been easy ones. A Genesis spokesman tells us that the brand’s inventory is being whittled down ahead of the launch of the revamped network alongside fresh, 2019 model year vehicles. Just how many Genesis dealers will exist at that time is unknown. Read More >
At the end of the day, brand perception comes down to product, but no one likes visiting a dingy dealership. As the once-endangered Mitsubishi awaits a slew of lucrative new products (crafted with Nissan’s help), it figures it may as well begin sprucing up its dealer presence — not just in the U.S., but worldwide.
While the automaker’s U.S. division sits back and basks in the glow of June’s 46.2 percent year-over-year sale increase, head office is busy planning 5,000 renovations. Read More >
Fiat Chrysler has some of the best three-row vehicles on the domestic market right now but, if you’re not a fan of minivans, you probably couldn’t care less about them. Dodge’s Grand Caravan remains a darling for budget-conscious families and fleet managers, despite being stuck in its fifth generation for over a decade. Meanwhile, the Chrysler Pacifica takes the Caravan concept and adds modern refinement at a higher price point.
The problem is that neither are SUVs. Even though Dodge does have the Durango on offer already, FCA chief Sergio Marchionne has been begging engineers to come up with a three-row SUV that would surpass the Ford Expedition and Chevrolet Suburban since at least 2013. The theory was to produce a hulking and rugged luxury vehicle that could compete with Land Rover and swipe some business from the domestic luxury rivals. He was heralding the return of Jeep Grand Wagoneer.
However, the vehicle’s development has been plighted with delays and the initial vision has become muddied. While it’s still coming, dealers are beginning to wonder if the model has missed its opportunity as gas prices climb, sales stagnate, and material costs rise. Read More >
Ever since Hyundai launched Genesis as a separate luxury brand, there’s been plenty of confusion as to how to distribute its vehicles. The company initially said Genesis would have an entirely separate U.S. dealer network within three years. Then it said existing Hyundai retailers could continue to sell luxury models if they met a certain criteria, but noted many would become ineligible as standalone stores became the norm.
Now Genesis is saying all Hyundai dealers are in the running, but they’ll need to have separate facilities for the luxury brand if they want to sell them. While the change isn’t drastic, it’s the third time the brand’s parent company has revised its dealer strategy, leaving us confused as to what the automaker’s plan was all along. Read More >
2019 Ram 1500s have begun arriving on dealer lots, but only in limited numbers. Not every trim and drivetrain configuration is currently available, as V6-powered models are not yet eligible for sale. Meanwhile, production of the previous-generation model continues.
Hoping to get more Ram transactions on its sales sheet, Fiat Chrysler Automobiles has embarked on a multi-pronged strategy to lure buyers into any and all of its trucks and vans. In many cases, the sales will exist only on paper. Read More >
While there’s nothing inherently wrong with a typical Nissan dealership, no one’s going to mistake one for the Taj Mahal. They’re functional structures, designed to hold salespeople that can walk you through the terms of a loan. Do they really need to be anything more?
Nissan says no, but it would still like its stores to undergo an ambitious renovation program that would alter the majority for the better. Executives in Japan said the brand intends to update 9,000 of its dealerships around the globe over the next five years. Changes include more prominent signage, updated customer-handling procedures, and more open concept showrooms and service departments.
However, just how much pressure HQ is exerting on North American shops to adhere to the changes is unclear. In the United States, dealerships are already subject to the Nissan Retail Environment Design Initiative (NREDI 2.0), which encourages tons of daylight via glass-fronted showrooms and wide open spaces. The overall look is extremely modern and inviting without feeling showy. Think really nice community college, rather than the hotel lounge experience some premium auto brands attempt to provide. Read More >
We told you last year of the outrageous case of an Oshawa, Ontario used car salesman who bilked unwitting customers out of their hard-earned cash before being sentenced to a month in jail. Well, a second trial recently adjourned, and Ryen Maxwell of Countryside Motors now faces 180 days in the big house.
A repeat fraudster, this former salesman’s list of financial atrocities is a long one. In addition to causing fiscal hardship for numerous customers, Maxwell’s actions can be credited with causing, or at least contributing to, one woman becoming stranded in a rural snowbank and the breakup of another man’s marriage. Is it any wonder BHPH lots carry a stigma? Read More >
Longtime auto executive Bob Lutz has always been an incredibly outspoken individual. His years of hard work have given him an insight into the industry that few possess, and he’s only become more willing to share that information as he ages. Like the industrious caterpillar, his ceaseless labor has allowed him to metamorphose into what is arguably his perfect form near the end of his lifecycle — a candid automotive butterfly.
We love hearing anything has to say, as his insight borders on the surreal, but with more than enough truth to come to pass. Last year, he divined a future where the car as we know it is destroyed by governmental regulation and advanced technologies. The dystopian plot seemed impossible upon a cursory glance, but the deeper you drive, the more plausible it begins to seem.
Lutz refocused this week at the SAE International WCX World Congress Experience in Detroit, saying the traditional dealer model will be among the first things to go in the brave new world of mobility. He called car dealerships an “endangered species,” suggesting to the crowd that it had “another 20 to 25 years before it’s all over.” Read More >
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