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Automotive News & Views Dude, where did all the dealerships go?
654 messages, Last post on Nov 23, 2009 at 7:56 PM
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and this one is slightly unusual in that it's a Toyota dealership. This place had just spent all the money required by Toyota to upgrade and expand their dealership, barely 8 weeks before, and they are gone along with ten others, including the Nissan dealership in Fremont (also here in the Bay Area): More Japanese car dealerships close Another day, another Bay Area car dealership closes. Ah, but this is not one of the usual suspects. Superior Toyota/Scion in Oakland, which opened just two months ago, shut its doors suddenly on Wednesday. That's 100 jobs down the drain. Also closed were Superior Nissan in Fremont and 10 other California dealerships owned by Long Beach-based Superior Automotive Group. Bank financing withdrawn was the explanation. Not surprising, given the fact that Japanese car companies in general, and Toyota Motor Corp. in particular, are doing every bit as badly as Detroit, in some cases worse. Check out the rows and rows of unsold Toyotas on Bay Area lots. Ripple effect: San Francisco ad agency, Attik, axed 15 employees, close to a third of its staff, earlier this month. Company executives wouldn't comment, but the layoffs came as Toyota whacked back its Scion campaign, a major account of Attik's since 2003. In these times, one also has to wonder about the prospects of another Attik account, Toyota's $300,000 Lexus sports car. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/26/BUL0164VE6.DTL One of the local news programs interviewed the owner of another Toyota dealership in the area, and he said many of the Superior employees had come asking if he had any work available, but of course he really doesn't and he felt bad for them. I'm kinda surprised that one of these big corporate dealerships failed, the pattern I'm more used to seeing is the little family places closing up. |
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I'm kinda surprised that one of these big corporate dealerships failed, the pattern I'm more used to seeing is the little family places closing up. I'm thinking that the companies that are run well are the ones that are going to survive, whether they are family run or corporations. The dealerships that have excessive debt on their books, and are not able to secure financing for inventory, are the ones that will likely go out of business. Again, this is true regardless of how many dealerships you own and run. |
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but seemingly relevant here: US auto dealers ask Obama to help stop job losses CHICAGO, March 4 (Reuters) - Three U.S. auto dealers' associations have asked President Barack Obama to launch policy initiatives to help save jobs in the auto retailing industry, one of the associations said on Wednesday. The American International Automobile Dealers Association (AIADA), which represents America's 11,000 international nameplate car franchises, said the three associations sent a letter to Obama asking him "to institute policy initiatives to stave off further job loss in auto retailing, and lay the foundation for a broader economic recovery." "The two-pronged plan includes revitalizing the asset-backed securities market for wholesale and retail auto loans and expanding the Small Business Administration loan guarantee program to provide working capital for auto dealers," the association said in a statement. ....."The auto retail industry in the United States is suffering greatly, and tens of thousands of jobs are being lost with each passing month of lower and lower car sales," said AIADA Chairman Russ Darrow. "The retail sector of our economy drives the manufacturing sector." "In order to achieve a comprehensive economicrecovery, Congress must focus on retail, and empowering Americans to buy again," he added. http://www.reuters.com/article/marketsNews/idUSN0421853220090304 I note with concern that it does not include any request for emergency financial aid, which means that if anything IS acted on in this request, it will be some time before its effect helps anybody at the dealership level..... |
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plus all the oil being stored, waiting for prices to rise, it seems like a big poker game. will the consumer blink first?
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Replying to: explorerx4 (Mar 04, 2009 4:58 pm) And who will be doing that exactly, the manufacturers or the dealers? Because I'm sure the dealers can't afford it. But with all the money we are handing GM and Chrysler, all their vehicles SHOULD be reduced in price by half. Interesting thought - that would quickly halt the ongoing extinction of dealerships, if you could suddenly get an Aveo for $4995, a Cobalt for $6995, etc.
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Replying to: nippononly (Mar 02, 2009 9:32 pm) I am not understanding why the cars go back to the manufacturers. The bank, lending institution or dealer owns the cars.
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Replying to: nippononly (Mar 04, 2009 8:37 pm) What do you base this on? |
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I don't understand the mechanics of it, but I have read in news articles that cars were going back to their manufacturers after dealerships closed. Maybe that is only the case some of the time - I appreciate your point that they are financed by a bank which would presumably take possession of them if the dealership defaulted on its loans. As for the half price comment, that was half tongue in cheek, but we have essentially given away $17 billion of taxpayer money so far to keep GM and Chrysler in business. We have no chance of ever seeing that money again, it was just flushed down the toilet. GM will probably sell about 2 million vehicles this year, maybe 1.75 milion, if they manage to stay in business. At that rate, we have given GM alone more than $7500 for every vehicle they will sell. Since their problem is overcapacity with no way to shed it, we should slice $7500 off the price of every vehicle they sell. We will get our bailout money back, GM will solve its overcapacity problem. And what a boon it would be for dealers! 
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Replying to: nippononly (Mar 05, 2009 7:11 am) I can't imagine a dealership bailout. Part of the plan to save the automakers (also a pretty doomed effort) is cutting down on dealerships. We simply can't afford as many as there are. It's sad but i think it's inevitable. |
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Replying to: jb_turner (Mar 04, 2009 9:18 pm) |
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