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Automotive News & Views Dude, where did all the dealerships go?
653 messages, Last post on Nov 14, 2009 at 6:23 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: gagrice (Dec 17, 2008 4:04 pm) I think you are right. Like I said it isn't likely to save many jobs at dealerships or service departments. I used to be in transportation and distribution and had a fleet of 12 trucks and three five forklifts. I happened to visit with one of the men I contracted with to do our forklift servicing and he said companies are not servicing their equipment because of decreased budgets. He expects to get laid off any day now. I guess it is pretty much the same all over San Bernardino county. I was talking to my wife today about what we might do if the 4 banger ever fails smog and we agree we keep the Tahoe and get a EV for around town. I have been researching GEMs on line and I can get a used one pretty reasonably. If we have to go more than 40 miles in a day we can take the SUV. It is way more comfortable on the freeway anyway. At this point the Pontiac is sitting in the driveway where I would park the EV and it still runs well so I have to reason to ditch it.
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Replying to: boaz47 (Dec 17, 2008 6:39 pm)
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Replying to: gagrice (Dec 17, 2008 9:52 pm) |
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On the morning news today: Central Chevrolet in Fremont, a family dealership in business more than 70 years, will close in early January. No Chevy franchise will replace it, and this was one of the largest Chevy dealerships in the Bay Area, down in the Silicon Valley area. It will be the sixth in the region to close this year, according to this article: http://www.mercurynews.com/ci_11273906?nclick_check=1 Of particular note is this Many may think that's not a California problem. Fremont's NUMMI Toyota and Pontiac plant — which already has announced a production slowdown — is the state's only auto factory. But California has 190,000 auto-related jobs, more than any state other than Michigan, according to the Center for Automotive Research in Ann Arbor, Mich. Some of those jobs involve making computer chips and other electronic and mechanical components that end up in cars. But the bulk are linked to the state's 1,594 car dealerships. Last year, those dealerships sold nearly 2 million new cars and trucks for a total of $82 billion, which the California New Car Dealers Association says was about 20 percent of the state's retail sales. The payrolls of those dealerships totaled $18 billion, and they paid $8 billion in taxes, according to the association. More than 900 dealerships, including 121 in California, already have closed their doors this year. Five dealerships have closed in the county this year, and others are almost certain to follow in coming months, costing more jobs and tax revenue. A new-car dealership in California typically employs 84 people and has an annual payroll of $4.6 million, according to the National Automobile Dealers Association. Of course, the problem is especially acute for domestic brand dealers: Sales by domestic-brand automakers amount to just 18 percent of car-and-truck registrations in Santa Clara County, while nationally they represent 48 percent. Still, the county has 13 dealers selling GM's domestic brands; four selling Chrysler, Dodge and Jeep vehicles; and six selling Fords, Lincolns and Mercurys. What a contrast: Only 29 Chryslers and 31 Jeeps each month were registered locally in the six months from May to October, according to the Silicon Valley Automobile Dealers Association. Toyota, long the bestselling brand locally, sold 1,289 cars and trucks per month during the same six-month period, but even its sales were down 21 percent. But even import dealers are impacted, especially if they have recently upgraded or expanded - Toyota has been promoting that the last couple of years, as it wants to keep a cap on the number of total dealers so that each dealer gets lots of sales volume, making each one stronger. Here's one that's feeling the pinch: At Piercey Toyota in Milpitas, which opened a huge new showroom on 10 acres east of Interstate 880 late last year, the impact didn't hit until October. But when it hit, it hit hard. Piercey has had to trim its 180-member staff by 50 people. "It's been a struggle," said Art Wicker, the dealership's president and a 40-year auto-industry veteran. Wicker hopes things will improve by summer. I get the feeling that things are going to get worse before they get better..... |
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Sad Saga of Scott Eckenhoff
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Replying to: lemko (Dec 29, 2008 5:29 pm) GM is targeting a 25% reduction in the number of its dealers by 2012, but that will still be more than double the number of Toyota dealers, just to compare an automaker of comparable annual sales volume. I could EASILY see these GM dealerships being repo'ed and closed up as part of a behind-the-scenes plan at GM. PS this really sucks: Eckenhoff, who leases the land here, said he was working on a deal to save his franchise. Meanwhile, he hopes GM agrees to buy back from GMAC his new cars for the same price he paid. He also hopes GMAC gets good prices at auction for his used cars. If GMAC gets less than what Eckenhoff paid, he will owe GMAC hundreds of thousands of dollars - if not more Poor guy, it's like when your car is repo'ed, only multiplied by 50 or 100! 
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Replying to: lemko (Dec 29, 2008 5:29 pm) |
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Replying to: gagrice (Dec 29, 2008 6:12 pm) Won't they just sell them to a different dealer? They can still be sold as new, just like any car fresh from the factory.
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Replying to: nippononly (Dec 29, 2008 6:14 pm)
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Replying to: gagrice (Dec 29, 2008 7:20 pm) |
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