"When you look at state and local consumer agencies on the front lines, auto sales and service is always the No. 1 problem people complain about, year after year after year”
Of course they can open a new dealership in Illinois. Obama gave all the welfare people hands full of money. Or at least they thought he was going to.
I do think it would give any GM dealer in Chicago that was shut down, a good case in court. This may also be a big expansion that was planned years ago.
As an independent insurance agent I enjoyed a commission only income that was better than the financial cocoon of all the other salaried positions out there.
This is also true of the lawyers who work on a percentage and real estate agents.
Then there are the meek, fearful, non risk takers who haven't the courage to operate their own business that often employ many others. They know what they haven't done to be envious of commission income producers.
None of which has anything to do with whether car dealers have enough public support to get legislative support to force GM and Chrysler to reopen dealerships.
The car dealer lobby is strong, but not only are they fighting public opinion, I think the bankruptcy court trumps 'em.
ALBUQUERQUE, N.M. (AP) - A former Albuquerque auto dealer, faced with an ailing economy and difficulty getting credit for his dealership, says he turned to gambling last year in a bid to salvage the business.
Ken Zangara racked up a $250,000 gambling loss just months before he closed his dealership in February. He says he was trying to win enough money to save the business.
Zangara and his wife filed for a Chapter 7 bankruptcy Oct. 20.
Zangara Dodge closed its doors Feb. 17, citing the economic crisis and loss of its primary lending source.
At the time, Zangara Dodge was under investigation by the state attorney general's office for numerous consumer complaints over alleged illegal business practices.
Zangara has been recognized for his support of local charities and was involved in politics.
It probably would have been easier to plow the cash into getting a different franchise. The lottery is set up for ham-and-eggers like myself who dream of retiring early, right?
A sign of the times: a former dealership literally a short walk from my home where I bought my current vehicle closed over a year ago. It occupied 2 blocks of space, and contains three buildings.
Not too long ago, someone decided that a showroom glass panel and a doorway didn't look correct intact on one of the vacant buildings, so the items were smashed. Apparently the real estate interest that is trying to lease or sell the buildings boarded up the damage. The longer the buildings sit unoccupied, the more I worry about the type of element the vacant buildings will draw.
One of the other buildings will re-open as a new store for a nationally-known dollar merchandise chain. Hopefully, the money generated there will assist in the upkeep of the other two buildings at the site.
"General Motors last week began sending out 1.8 million pieces of direct mail to what the automaker calls its "free-agent customers".
In addition to eliminating four brands, GM is slashing about a quarter of its dealers. To customers of closed dealers in the family, GM, in its November 16 mailing, is offering discounts up to $2,000 to 950,000 customers of the closed dealerships.
Automotive News reports some dealers who are fighting their closure by GM aren't happy about the incentives being offered to their customers to shop elswhere.
"This is an inappropriate time to take such an aggressive measure," Tamara Darvish, a leader of the Committee to Restore Dealer Rights, a group of rejected dealers that is in talks with GM to keep dealerships open, told the publication. "If in fact dealer rights are to be restored, why would GM go in and move all those customers?"
"General Motors said Thursday it will reconsider its decision to close some dealerships as part of a compromise to stave off federal legislation that would require it to keep dealerships open."
Both the National Automobile Dealers Association and a group of rejected dealers said the automakers' proposals were inadequate.
“Under their plans, a dealer would have had a better chance at winning the Powerball lottery than getting back in business,” said Tamara Darvish, one of three heads of the Committee to Restore Dealer Rights.
The next wave will be when Mitsubishi gives up in the U.S., although I suppose there are very few if any stand-alone Mitsubishi dealers.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
When I look at Lexus vehicles on Edmund's it does not show Bob Baker Lexus. It was there before they put the wrong floor mat in the car that killed 4 people. That is one dealership I will not worry about losing their franchise.
Dealers have to jump through some hoops to get their inventory listed on the new vehicle pages or on the Dealer Locator / Quote service. Maybe they didn't re-up if you saw them there before and now they're AWOL.
I must have found them on that link before. I left my earlier impressions of our experience in the service department. Seems that my assessment was pretty accurate on their service.
At least 100 GM dealerships will be reinstated, Whitacre says
DETROIT -- Ed Whitacre, General Motors Co.'s chairman, expects at least 100 GM dealerships will be restored in the arbitration process mandated by a new federal law.
“I think a large number will get reinstated,” he said today in a meeting with reporters. “I think that's a given. It's in the hundreds.”
.....An arbitration judgment must be handed down by June 15. In bankruptcy last year, Chrysler rejected 789 dealerships, while GM said it would wind down 1,350 through October 2010.
GM used a “pretty arbitrary” cut-off point in choosing which dealers to reject and probably made some mistakes by cutting some good dealers and leaving some bad ones, Whitacre said.
.....Arbitration could restore good and bad dealerships, Whitacre said.
“The bad thing would be if they're a lousy dealer that has a lousy storefront and through some process they're put back in arbitrarily,” he said. “If they're a good dealer and would really push GM in a classy manner, like we want it done, then it would be really good.”
Chrysler asks court to block state laws favoring rejected dealers
WASHINGTON -- Chrysler Group has asked the U.S. Bankruptcy Court to pre-empt new state laws that seek to make it easier for rejected dealerships to win reinstatement.
Chrysler argued that new laws in four states will disrupt the company’s business prospects by forcing it to work with “in large part poor-performing dealers.”
.....“New Chrysler faces the prospect of immediate, severe and irreparable injury,” says the complaint, filed in the Bankruptcy Court in New York. The laws “completely undermine new Chrysler’s ability to develop the strong dealer network it needs to compete successfully in the automotive industry.”
I swear, the use of these names, New GM and New Chrysler, is so sickening I could just barf. New Chrysler, same as the old Chrysler except not taking responsibility for the swath of wrecked dealers, suppliers, you name it, in its trail. Ditto GM.
Apparently Chrysler wants to set up some network of high-performing dealers called Genesis. This will get in the way. Oh boo hoo.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I still do not understand the logic used in pulling the contract from any of the GM or C dealers. Why not just let them die of natural causes. If they cannot sell the vehicles they are offered from the automaker they close the doors or find a better source from Korea or maybe China. If they were over crowded the best dealers should come to the top and the others go out of business. It has worked that way for a 100 years. Why is it any different today?
Every state has their own set of dealer franchise laws that were implemented with the idea of protecting the dealers from the capriciousness of the manufacturers.
Some say the states went too far and there's too many restrictions on the manufacturers on what methods they can use to weed out their underperforming dealers.
The bankruptcy court is federal so its decision to let the banko automakers close some dealers overrode state laws. So the GM and Chrysler dealers did an end run and cried to Congress.
seems to disagree with the dealers who are hoping to be reinstated...
More Detroit 3 dealerships must go, Penske says
DETROIT -- Even with the dealership closures already scheduled by Chrysler Group and General Motors Co., the U.S. auto industry needs fewer dealerships representing the Detroit 3 brands, auto retailing giant Roger Penske told the Automotive News World Congress.
"Many of them can no longer compete," said Penske, 72, CEO of Penske Automotive Group, the nation's second-largest group of dealerships. "We still need to see a further culling of dealerships to make our industry stronger."
The Detroit 3 brands account for 14,000 of the 20,000 dealerships in the United States but just 45 percent of U.S. new-car sales, he said. That equation doesn't work in a retail industry in which consumers are demanding a better buying and service experience, Penske said.
He's right, of course.....and I guess with any hope of help from the federal stimulus gone for dealers, the future seems dim for many of the dealers who are living right on the edge right now.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
That may be good for the fat cats like Penske. Not so good for the consumer. It is not only the D3 dealerships on the ragged edge. The Toyota dealership I bought from 2.5 years ago has been sold twice since then. We have 12 Toyota dealers in a 35 mile radius. Plus 5 Lexus dealers.
I still think letting them die of natural causes is preferable to some no nothing czar deciding who lives and who dies. If there is a choice, I would buy from the smaller dealer rather than a Penske dealership. If Penske and the conglomerates have their way, there will not be any small independent dealers.
is there a difference between 'new car sales' and 'new vehicles sales'? local service is a factor, and there are a lot of small dealers around. if these go away, do you really want to drive 100 miles to service your Camry?
2024 Ford F-150 STX, 2023 Ford Explorer ST, 91 Mustang GT vert
Adams and other Toyota dealers nationwide spent Wednesday talking to concerned owners who wondered whether they should bring their cars in for repairs to correct the gas-pedal problem. About 2.3 million vehicles, including the Corolla sedan and certain Camry sedans, could be affected by the recall.
That is about 200 cars per dealership that need to have the new throttle assembly installed. Add to that the flooring cost and where are all these new throttles going to come from. The supplier can build about 2 million PER YEAR. The cars on the road should get the first 2.3 million units.
How many Toyota dealers will be able to last through this fiasco?
It could be a boom time for the Toyota service people. IF they can get the parts. The Denso is not a direct replacement for the CTS unit. And there is a question if that is the actual culprit. CTS says it is built to Toyota standards. Any problem is Toyota's.
Most of the dealers around here were pulled by the manufacturers. Others just couldn't stay for economic reasons. Some others bit the dust on their own efforts, by shoddy business practices that were in place before the downturn.
I'd say 50% of all dealerships are gone in my area.
The net number of car and light-truck franchises fell by 3,410 last year -- from 38,103 on Jan. 1, 2009, to 34,693 on Jan. 1, 2010.
That's a decline of 9 percent, the largest shrinkage in the population of new-vehicle franchises in the 40 years that Automotive News has kept count. The figures were tabulated by Automotive News using data provided by auto manufacturers and some estimates.
Actually, the numbers downplay the scope of the reduction. About 2,600 additional franchises were killed as GM pulled the plug on Pontiac, Saturn and Hummer. Those terminations are not reflected in the 2010 census because the brands still were operating on Jan. 1. Also not reflected were reinstatement offers this year to 661 GM and 50 Chrysler dealerships
And it sounds like the dust still hasn't settled, as the numbers won't reflect the GM slash-and-burn until the 2010 numbers are in next year.
I noticed the first dealer expansion in a long long time near me last week - the local Toyota dealer has opened a Kia franchise. Interesting choice. Our county doesn't have a Hyundai dealer, which might have been a better choice for this dealer given that the Kias will compete directly with the Scions (and likely win the battle).
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Once again we have a Mazda dealer 20 miles up the road. The local franchise died with one dealership (the Lincoln Mercury guy) that went belly up then moved to the Chevy dealer who also went belly up and was gone for a year or more. Now the local Hyundai-Subaru-Buick-GMC guy has picked them up.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
Well, before a full year goes by without a post....
Funny thing happened down here. When Chrysler eliminated a bunch of dealerships back at the bankruptcy our local Jeep folks were ones who got the ax.
Lo and behold we now have a Jeep dealership back - the Chrysler - Dodge guy in town picked it up. Were I the guys that got my dealership pulled two years ago I think I might be a tad miffed.
The same kind of thing is happening twenty miles north.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
I interpret the lack of posts as a sign of stability. No more dealerships are closing in the Baltimore area. During my drives through the northern suburbs of the area, I saw two vacant dealership lots announce their intentions to offer Mitsubishi & BMW products shortly. My sister and her husband are seriously looking into buying a new vehicle. While I'm not quite in the position to purchase anything, I'm scouring the 'net for a suitable replacement of my current steed should the need arise. (Looks like the runners up are the Elantra Touring or the Mazda5 once they start installing the Sky-G engines across their product lines.)
I really like that Elantra Touring. I love wagons. When we were losing dealerships we gained a Hyundai dealership.
We had the slowest dealership closing I've ever seen where for a period of more than a year the Chevy dealer would have one new car. Then one day he took down the Chevy signs and is now strictly a used car lot.
You can't buy a Chevy within 30 miles of here. I expect at one point someone will give it a go.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
It's funny, I just noticed this week that after over a year of sitting vacant, the Cadillac-Chevy-Hyundai dealership in my county is finally being torn down. That place had just been completely remodeled less than a year before, when it folded in the middle of the night.
That left us with only one Chevy dealer at the far north end of the county, and zero, count 'em, zero Cadillac or Hyundai dealers within a half hour's drive.
What I found even more significant is that in a whole year, they couldn't find anyone to take over a brand new dealership in a prime location. Things may be more stable now, but we are not going to be in expansion mode for a while, that's for sure.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
died in the recession after being there for almost 100 years, thereby ending GM's presence in San Francisco for good.
In the news today is that Nissan/Infiniti, which also didn't have a presence in the City, will be taking over that old dealership. Good news for Nissan, and for Penske Automotive, which will be the owner.
I am surprised that didn't happen in more of the abandoned dealerships in the area.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
As brands disappear, dealership count takes a historic dive
More than 20 percent of U.S. car dealerships disappeared between Jan. 1, 2006, and Jan. 1, 2011, according to the Automotive News Data Center. In fact, the past half-decade has seen a greater proportion of the dealer body fall away than any whole decade since the 1950s, when the dealer count fell by 22 percent.
In both eras, a rash of brand failures contributed to the sharp decline.
In the 1950s, the Allstate, Crosley, Frazer, Henry J, Hudson, Kaiser, Nash, Willys-Overland and Packard brands disappeared. Since 2006, Isuzu, Pontiac, Saturn, Hummer and Mercury have vanished from the U.S. market.
I wonder which contributed more to dealerships closing - the termination of those 5 brands, or the MASSIVE shrinkage of the remaining brands at the Detroit Big 3.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Out with the old and in with the new. That Chevy dealership that took forever to die is now gone. In its place is "Now Open - Manahawkin Kia!" We'll see.
I notice that all the brand new Hyundais that were on the back of the lot are no longer there. I have to figure the Hyundai dealer found someplace else for his excess inventory.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
I'm considering the effects of Carmageddon 2008 on a possible vehicle purchase next year. How many dealers can I go to? The city I live in and its suburbs host just over a million residents, but there's only one new car dealership in the city. Purchasing won't be as much as a problem as service (perhaps I'll post my experience here one day).
Here are the counts of dealers where I could go to purchase vehicles, roughly in the order of descending product desirability, in or near my metropolitan area:
Mazda: 4 (two owned by the same chain) Hyundai: 5 VW: 5 (two owned by the same chain) Subaru: 4 Ford: 7* Nissan: 6 Toyota/Scion: 5 Chevrolet: 7** (two owned by the same chain) Mitsubishi: 3 Acura, Cadillac: (2, 5)*** Chrysler: 6**** Bentley: 1*****
* Would have been #1 if Ford brought over the Focus wagon. ** If the HHR is still around next year. *** 401k? Wuzzat? **** Emergency funds have three purposes: to sustain you through unemployment, pay for major repairs, and to get Chrysler 300s. Ask your dad about that, he knows! ***** Just Because. Besides, Bugatti wasn't close enough.
In general, the picks get slimmer at the top of the list.
Although more long-time brands are near the top of my list than previously, circumstances have changed. Mazda might dry up and blow away in two years. Suzuki's former growth stats are now inherited by Hyundai; high growth doesn't necessarily mean anything if I can't find a critical part in the 7th or 8th year of owning a vehicle.
There's a lot to consider between now and next year.
That's an interesting list. I like the way you think. Especially the footnotes.
Well, the big town in our county that lost its Chevy dealership late 08 or early 09 now has one back. The rapidly growing mega-dealer that brought Dodge, Chrysler, Keep and Mazda back to town now adds Chevy to its stable.
We still have a lot of empty places waiting for a new owner but slowly they are filling back in.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
Sounds kind of like the smallish town where my mother lives - Ford, Lincoln, Chevy, Buick, GMC, Chrysler, Dodge, Jeep, Toyota - all under one group. Honda is the only independent. No Nissan and no Euros there, population is too small and not very affluent.
In my boomburb, just about every make can be found - Ford/Lincoln, Chevy and Mopar all on the same block, Volvo, Caddy, Lexus there too, Nissan not far away, then Audi, Acura, MB, BMW, Porsche, Bentley, Aston, Saab within a few minutes drive, Toyota, VW, Subaru, and Honda on the other side of town.
Let's see.... our local "family of dealerships" has Ford, Lincoln, Nissan, Honda. They used to have Jeep and Suzuki but those got pulled. A couple of years after that happened the Dodge-Chrysler dealer across the street got the Jeep dealership. They replaced the Suzuki part of the dealership with what they call their "luxury imports" - used car lot with nice overpriced cars.
We have a Buick - GMC dealer and the just opened Kia dealership as well as a Hyundai that opened maybe 2 years ago.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
No Korean makes technically in my town, but I know there's a Hyundai dealer about 5 miles away, and I think a Kia dealer in the same area.
The Nissan dealer here has the same kind of thing, a "luxury import" lot - it even masquerades as an independent dealership, but in the free car rags found at grocery stores sometimes units on the used car lot are advertised by the Nissan dealer, and the used car lot sometimes stores surplus Nissans. Quite a few higher end used car dealers in the area too.
Comments
Car dealers want to evade thumb of new consumer protection agency (OC Register)
And that's a big reason why a lot of people don't care if a dealer closes.
Not every dealer is closing of course - and there's even at least one new one out there.
GM Opens First New Dealership in Illinois This Year ( dBusinessNews)
I do think it would give any GM dealer in Chicago that was shut down, a good case in court. This may also be a big expansion that was planned years ago.
This is also true of the lawyers who work on a percentage and real estate agents.
Then there are the meek, fearful, non risk takers who haven't the courage to operate their own business that often employ many others. They know what they haven't done to be envious of commission income producers.
The car dealer lobby is strong, but not only are they fighting public opinion, I think the bankruptcy court trumps 'em.
ALBUQUERQUE, N.M. (AP) - A former Albuquerque auto dealer, faced with an ailing economy and difficulty getting credit for his dealership, says he turned to gambling last year in a bid to salvage the business.
Ken Zangara racked up a $250,000 gambling loss just months before he closed his dealership in February. He says he was trying to win enough money to save the business.
Zangara and his wife filed for a Chapter 7 bankruptcy Oct. 20.
Zangara Dodge closed its doors Feb. 17, citing the economic crisis and loss of its primary lending source.
At the time, Zangara Dodge was under investigation by the state attorney general's office for numerous consumer complaints over alleged illegal business practices.
Zangara has been recognized for his support of local charities and was involved in politics.
A sign of the times: a former dealership literally a short walk from my home where I bought my current vehicle closed over a year ago. It occupied 2 blocks of space, and contains three buildings.
Not too long ago, someone decided that a showroom glass panel and a doorway didn't look correct intact on one of the vacant buildings, so the items were smashed. Apparently the real estate interest that is trying to lease or sell the buildings boarded up the damage. The longer the buildings sit unoccupied, the more I worry about the type of element the vacant buildings will draw.
One of the other buildings will re-open as a new store for a nationally-known dollar merchandise chain. Hopefully, the money generated there will assist in the upkeep of the other two buildings at the site.
That's not a lot left.
New Saab Owners Slash 81 U.S. Dealers (Straightline)
In addition to eliminating four brands, GM is slashing about a quarter of its dealers. To customers of closed dealers in the family, GM, in its November 16 mailing, is offering discounts up to $2,000 to 950,000 customers of the closed dealerships.
Automotive News reports some dealers who are fighting their closure by GM aren't happy about the incentives being offered to their customers to shop elswhere.
"This is an inappropriate time to take such an aggressive measure," Tamara Darvish, a leader of the Committee to Restore Dealer Rights, a group of rejected dealers that is in talks with GM to keep dealerships open, told the publication. "If in fact dealer rights are to be restored, why would GM go in and move all those customers?"
GM Orphans Up for Adoption (AutoObserver)
"General Motors said Thursday it will reconsider its decision to close some dealerships as part of a compromise to stave off federal legislation that would require it to keep dealerships open."
GM agrees to reconsider dealership closings (MSNBC)
http://www.autonews.com/apps/pbcs.dll/article?AID=/20091203/RETAIL/912039993/107- 8
Both the National Automobile Dealers Association and a group of rejected dealers said the automakers' proposals were inadequate.
“Under their plans, a dealer would have had a better chance at winning the Powerball lottery than getting back in business,” said Tamara Darvish, one of three heads of the Committee to Restore Dealer Rights.
The next wave will be when Mitsubishi gives up in the U.S., although I suppose there are very few if any stand-alone Mitsubishi dealers.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
He's got 31 used vehicles. The biggest oart of his lot is being used for the local Hyundai guy to park excess inventory.
"a fresh perspective on this long, tortured system of selling cars."
Insider Car Buying Tips: Day Four -- Eyeball to Eyeball Negotiating (Edmunds CarPool)
We'll probably find out the rest of the deal when the first report goes live.
Dealers have to jump through some hoops to get their inventory listed on the new vehicle pages or on the Dealer Locator / Quote service. Maybe they didn't re-up if you saw them there before and now they're AWOL.
Savvy Shopper: Internet Vs. Traditional -- You Decide Which is Best
(hint - the traditional method isn't winning any friends at the home office as they try to add the Fusion Hybrid to the test fleet).
Here's the update on the Fusion Hybrid purchase. $100 under invoice.
DETROIT -- Ed Whitacre, General Motors Co.'s chairman, expects at least 100 GM dealerships will be restored in the arbitration process mandated by a new federal law.
“I think a large number will get reinstated,” he said today in a meeting with reporters. “I think that's a given. It's in the hundreds.”
.....An arbitration judgment must be handed down by June 15. In bankruptcy last year, Chrysler rejected 789 dealerships, while GM said it would wind down 1,350 through October 2010.
GM used a “pretty arbitrary” cut-off point in choosing which dealers to reject and probably made some mistakes by cutting some good dealers and leaving some bad ones, Whitacre said.
.....Arbitration could restore good and bad dealerships, Whitacre said.
“The bad thing would be if they're a lousy dealer that has a lousy storefront and through some process they're put back in arbitrarily,” he said. “If they're a good dealer and would really push GM in a classy manner, like we want it done, then it would be really good.”
http://www.autonews.com/article/20100106/RETAIL07/100109953/1400#
This is good news for dealers, but bad for GM in the long run I think.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Chrysler asks court to block state laws favoring rejected dealers
WASHINGTON -- Chrysler Group has asked the U.S. Bankruptcy Court to pre-empt new state laws that seek to make it easier for rejected dealerships to win reinstatement.
Chrysler argued that new laws in four states will disrupt the company’s business prospects by forcing it to work with “in large part poor-performing dealers.”
.....“New Chrysler faces the prospect of immediate, severe and irreparable injury,” says the complaint, filed in the Bankruptcy Court in New York. The laws “completely undermine new Chrysler’s ability to develop the strong dealer network it needs to compete successfully in the automotive industry.”
http://www.autonews.com/article/20100106/RETAIL07/100109954/1400
I swear, the use of these names, New GM and New Chrysler, is so sickening I could just barf. New Chrysler, same as the old Chrysler except not taking responsibility for the swath of wrecked dealers, suppliers, you name it, in its trail. Ditto GM.
Apparently Chrysler wants to set up some network of high-performing dealers called Genesis. This will get in the way. Oh boo hoo.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Some say the states went too far and there's too many restrictions on the manufacturers on what methods they can use to weed out their underperforming dealers.
The bankruptcy court is federal so its decision to let the banko automakers close some dealers overrode state laws. So the GM and Chrysler dealers did an end run and cried to Congress.
Not exactly pure capitalism (nothing is, eh?).
More Detroit 3 dealerships must go, Penske says
DETROIT -- Even with the dealership closures already scheduled by Chrysler Group and General Motors Co., the U.S. auto industry needs fewer dealerships representing the Detroit 3 brands, auto retailing giant Roger Penske told the Automotive News World Congress.
"Many of them can no longer compete," said Penske, 72, CEO of Penske Automotive Group, the nation's second-largest group of dealerships. "We still need to see a further culling of dealerships to make our industry stronger."
The Detroit 3 brands account for 14,000 of the 20,000 dealerships in the United States but just 45 percent of U.S. new-car sales, he said. That equation doesn't work in a retail industry in which consumers are demanding a better buying and service experience, Penske said.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20100118/OEM09/301189954/1078-
He's right, of course.....and I guess with any hope of help from the federal stimulus gone for dealers, the future seems dim for many of the dealers who are living right on the edge right now.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I still think letting them die of natural causes is preferable to some no nothing czar deciding who lives and who dies. If there is a choice, I would buy from the smaller dealer rather than a Penske dealership. If Penske and the conglomerates have their way, there will not be any small independent dealers.
local service is a factor, and there are a lot of small dealers around.
if these go away, do you really want to drive 100 miles to service your Camry?
Toyota dealers left to cope with recall (Kansas City Star)
"The recall took 36 cars off Steve's Hometown Toyota lot. Dominguez says they still have 130 new Toyotas available for sale."
Local Toyota dealer says massive recall shouldn't crush them (KTVB)
Adams and other Toyota dealers nationwide spent Wednesday talking to concerned owners who wondered whether they should bring their cars in for repairs to correct the gas-pedal problem. About 2.3 million vehicles, including the Corolla sedan and certain Camry sedans, could be affected by the recall.
That is about 200 cars per dealership that need to have the new throttle assembly installed. Add to that the flooring cost and where are all these new throttles going to come from. The supplier can build about 2 million PER YEAR. The cars on the road should get the first 2.3 million units.
How many Toyota dealers will be able to last through this fiasco?
Still I don't see how many smaller Toyota dealers are going to make it, given the numbers that gagrice presented.
Of course, they will see an enormous uptick in manufacturer-paid repairs in their service departments, perhaps that will get them through.....
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Others just couldn't stay for economic reasons.
Some others bit the dust on their own efforts, by shoddy business practices that were in place before the downturn.
I'd say 50% of all dealerships are gone in my area.
I
That's a decline of 9 percent, the largest shrinkage in the population of new-vehicle franchises in the 40 years that Automotive News has kept count. The figures were tabulated by Automotive News using data provided by auto manufacturers and some estimates.
Actually, the numbers downplay the scope of the reduction. About 2,600 additional franchises were killed as GM pulled the plug on Pontiac, Saturn and Hummer. Those terminations are not reflected in the 2010 census because the brands still were operating on Jan. 1. Also not reflected were reinstatement offers this year to 661 GM and 50 Chrysler dealerships
http://www.autonews.com/apps/pbcs.dll/article?AID=/20100412/RETAIL07/304129965/1- 400
And it sounds like the dust still hasn't settled, as the numbers won't reflect the GM slash-and-burn until the 2010 numbers are in next year.
I noticed the first dealer expansion in a long long time near me last week - the local Toyota dealer has opened a Kia franchise. Interesting choice. Our county doesn't have a Hyundai dealer, which might have been a better choice for this dealer given that the Kias will compete directly with the Scions (and likely win the battle).
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Funny thing happened down here. When Chrysler eliminated a bunch of dealerships back at the bankruptcy our local Jeep folks were ones who got the ax.
Lo and behold we now have a Jeep dealership back - the Chrysler - Dodge guy in town picked it up. Were I the guys that got my dealership pulled two years ago I think I might be a tad miffed.
The same kind of thing is happening twenty miles north.
We had the slowest dealership closing I've ever seen where for a period of more than a year the Chevy dealer would have one new car. Then one day he took down the Chevy signs and is now strictly a used car lot.
You can't buy a Chevy within 30 miles of here. I expect at one point someone will give it a go.
That left us with only one Chevy dealer at the far north end of the county, and zero, count 'em, zero Cadillac or Hyundai dealers within a half hour's drive.
What I found even more significant is that in a whole year, they couldn't find anyone to take over a brand new dealership in a prime location. Things may be more stable now, but we are not going to be in expansion mode for a while, that's for sure.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
In the news today is that Nissan/Infiniti, which also didn't have a presence in the City, will be taking over that old dealership. Good news for Nissan, and for Penske Automotive, which will be the owner.
I am surprised that didn't happen in more of the abandoned dealerships in the area.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
More than 20 percent of U.S. car dealerships disappeared between Jan. 1, 2006, and Jan. 1, 2011, according to the Automotive News Data Center. In fact, the past half-decade has seen a greater proportion of the dealer body fall away than any whole decade since the 1950s, when the dealer count fell by 22 percent.
In both eras, a rash of brand failures contributed to the sharp decline.
In the 1950s, the Allstate, Crosley, Frazer, Henry J, Hudson, Kaiser, Nash, Willys-Overland and Packard brands disappeared. Since 2006, Isuzu, Pontiac, Saturn, Hummer and Mercury have vanished from the U.S. market.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20110411/RETAIL07/304119974/-- 1
I wonder which contributed more to dealerships closing - the termination of those 5 brands, or the MASSIVE shrinkage of the remaining brands at the Detroit Big 3.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I notice that all the brand new Hyundais that were on the back of the lot are no longer there. I have to figure the Hyundai dealer found someplace else for his excess inventory.
Here are the counts of dealers where I could go to purchase vehicles, roughly in the order of descending product desirability, in or near my metropolitan area:
Mazda: 4 (two owned by the same chain)
Hyundai: 5
VW: 5 (two owned by the same chain)
Subaru: 4
Ford: 7*
Nissan: 6
Toyota/Scion: 5
Chevrolet: 7** (two owned by the same chain)
Mitsubishi: 3
Acura, Cadillac: (2, 5)***
Chrysler: 6****
Bentley: 1*****
* Would have been #1 if Ford brought over the Focus wagon.
** If the HHR is still around next year.
*** 401k? Wuzzat?
**** Emergency funds have three purposes: to sustain you through
unemployment, pay for major repairs, and to get Chrysler 300s.
Ask your dad about that, he knows!
***** Just Because. Besides, Bugatti wasn't close enough.
In general, the picks get slimmer at the top of the list.
Although more long-time brands are near the top of my list than previously, circumstances have changed. Mazda might dry up and blow away in two years. Suzuki's former growth stats are now inherited by Hyundai; high growth doesn't necessarily mean anything if I can't find a critical part in the 7th or 8th year of owning a vehicle.
There's a lot to consider between now and next year.
Well, the big town in our county that lost its Chevy dealership late 08 or early 09 now has one back. The rapidly growing mega-dealer that brought Dodge, Chrysler, Keep and Mazda back to town now adds Chevy to its stable.
We still have a lot of empty places waiting for a new owner but slowly they are filling back in.
However, they just reopened a week or two ago in the building that used to house the Hummer dealer here in town.
So, now our town has the following makes available - all from the same dealership group:
Ford
Lincoln
Suzuki
Chevrolet
Buick
GMC
Dodge
Chrysler
Jeep
Ram
In my boomburb, just about every make can be found - Ford/Lincoln, Chevy and Mopar all on the same block, Volvo, Caddy, Lexus there too, Nissan not far away, then Audi, Acura, MB, BMW, Porsche, Bentley, Aston, Saab within a few minutes drive, Toyota, VW, Subaru, and Honda on the other side of town.
We have a Buick - GMC dealer and the just opened Kia dealership as well as a Hyundai that opened maybe 2 years ago.
The Nissan dealer here has the same kind of thing, a "luxury import" lot - it even masquerades as an independent dealership, but in the free car rags found at grocery stores sometimes units on the used car lot are advertised by the Nissan dealer, and the used car lot sometimes stores surplus Nissans. Quite a few higher end used car dealers in the area too.