By on January 25, 2019

2018 Mitsubishi Outlander PHEV - Image: Mitsubishi

Mitsubishi Motors burned up the newswires today in its haste to celebrate the opening of a new dealership in Cartersville, Georgia — which isn’t something you see every day. While hard to imagine for an OEM like Ford or GM, the press release fits with Mitsubishi’s short-term goal: a dealer network expansion in the U.S. and Canada, and greater dealer visibility.

We rag on Mitsubishi a lot; in many cases rightly so (why do your driver’s seats wobble?), but the brand that courted death earlier this decade just wrapped up its best sales year since 2006. When you’re small, you celebrate the little things. (Read More…)

By on January 9, 2019

On January 6th, local law enforcement reported that four kids enjoyed a night of destructive mayhem at a Houston-area CarMax dealership located in the 16100 block of the North Freeway. According to local reports, police were responding to a call where four young males were caught on video surveillance breaking into multiple vehicles. However, things got really interesting after officials learned the cars weren’t being stolen, but rather used to intentionally mangle other vehicles on the lot just for the thrill.

Police claim approximately $800,000 in damages after the group managed to intentionally wreck nearly two dozen automobiles. While none of the suspects’ names have been released, it’s probably safe to assume rowdy teens — mankind’s greatest foe — are to blame.  (Read More…)

By on December 13, 2018

lincoln navigator grille badge lincoln logo

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…)

By on November 18, 2018

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…)

By on November 12, 2018

https://www.flickr.com/photos/autohistorian/25516489743/

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…)

By on November 8, 2018

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.

(Read More…)

By on August 28, 2018

dealership

Serious question: What kind of experience do you need in order to write credibly about the automobile? If you were to ask some of the autojourno Boomers, they might tell you that the minimum requirement would be the career path followed by my time-and-again boss, Larry Webster: engineering degree, followed immediately by a magazine employment history that starts at “road warrior” and ends at “E-I-C of the most solvent color rag in the business”.

Some people would say that my boon companion Sam Smith did it right: college degree, time as a professional BMW mechanic, many years as a self-funded club racer in concert with his experienced and mechanically knowledgeable father. I’d like to argue for my own path: mildly successful car salesman, F&I experience with multiple captive finance firms, ground-floor experience with automotive tech and production, eighteen years of motorsports with a sack full of wins and lap records.

Ah, but these are means and not ends. They are how and not why. They detail the pathway by which expertise is acquired but they are not expertise themselves. If you read everything that Larry and Sam and I have written, you would know a major percentage of the things we know, and then you would be free to go forth and apply that knowledge to future situations. All you would need at that point would be an ability to write.

You could get by with less. LJK Setright was frequently dead wrong but I’d rather read his mistakes than labor through Csaba Csere’s researched conclusions. Gordon Baxter was not a great pilot and he was a worse driver. As a teenager, I read the work of gunwriter Jeff Cooper until I knew much of it by heart; years later, a mutual friend confessed to me that Cooper was only just competent with a .45 caliber pistol.

This is what you cannot be and still succeed, not if there is any justice in this world or the next: ignorant and proud of it, stupid yet blase about it, stilted in prose but unwilling to fix it. Which brings us to this week’s question.

(Read More…)

By on August 13, 2018

2018 Lincoln Navigator

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…)

By on July 9, 2018

2018 Mitsubishi Outlander rear quarter

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…)

By on April 23, 2018

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…)

By on April 11, 2018

Bob Lutz 2008 Pontiac G8 In Chicago

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…)

By on April 3, 2018

Ford F-150

Spring is springing in most parts of the country and, as if on cue, more customers are beating their way to a dealership’s door. The market is up, in both monthly and year-to-date measures.

Mazda, Toyota, and Volkswagen are all up on their own merits both from a monthly and year-to-date perspective. In fact, compared to the same month last year, just about all the major automakers moved more metal in March. (Read More…)

By on April 2, 2018

Sales situation in a car dealership, the young couple is signing the sales contract to get the new car in the background, Image: Kzenon/Bigstock.com

It’ll be another 24 hours before the nation’s automakers release March sales figures, all thanks to the Easter long weekend. Shaking off the effects of a chocolate bunny induced sugar high takes a day or two, after all.

This means, at most dealers, last month’s subvented rates still apply — so, if you’re looking at snagging a 2017 model, it might not be a bad idea to lock the deal down today. Shoppers of MY2018 machines can relax, as the deals on those rides will likely be better tomorrow morning … especially if it’s a vehicle that was majorly reworked for 2019.

Until then, we have time to peruse a story from Bloomberg, one which pontificates on the sudden evaporation of subprime new car buyers from showrooms in the month of March.

Evaporation? I thought there was a glut of them! Let’s dig into the report.

(Read More…)

By on March 23, 2018

electrify-america-ev-charging-station, Electrify America

While fuel-cell technology is progressing in places like California and Japan, the rest of the world shrugged it off after the initial hype subsided. Since then, practically every automaker in existence has invested in battery technology and electrification. However, according to a recent survey, most auto executives secretly do not believe batteries will be the real breakthrough in electric mobility. Dealers feel the same way, but they’ve been less cagey on the matter.

Uh, what? Then why is everyone and their mother talking up plug-in cars and sweeping the fuel cell under the carpet?

Well, in addition to hydrogen having an abysmal fueling infrastructure almost everywhere, governments simply aren’t pushing it like battery power. Incentivizing plug-in cars has gone a long way to bolster the segment’s popularity and, with China mandating that a growing portion of all auto sales be battery-related, companies have to lean into what they already have. That said, many executives still seem to feel that hydrogen-powered cars have more to give the industry.

Let’s not get ahead of ourselves. Its time to talk about why auto dealers are so unhappy about the electric revolution.  (Read More…)

By on March 22, 2018

Sales of the Mini brand have been in a downward spiral since 2013 and U.S. dealerships want to know what expect in the future. Any prospects for the nameplate to grow into a volume brand appears to have been thrown out the window by BMW Group, and it’s now looking like it could shift into electrification.

Dealers, however, don’t know this for sure, and hope to gain clarity on the matter as the domestic market dives deeper into its appreciation for trucks, SUVs, and crossovers.

“I don’t think the dealers have a very clear vision of where the car line is going long term,” explained Jason Willis, member of the Mini National Dealer Council. “There is a lot of pride on being a small-car performance company, so my guess is we will continue to be a small-car company. But as far as electric and how we fit in, we’re still waiting to hear that plan.” (Read More…)

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