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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
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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But I believe part of the problem is that the manufacturers and dealers hardly ever listen to the consumers. Sure they made cars the consumers bought but did ever seriously consider how the consumer reacted to low cost daily transportation? The Koreans gained market share by offering low cost entry level transportation. Shoot even the Yugo sold a few cars because of cost alone. But the big boys didn’t care and things slowed down and even the Korean cars started creeping up in price. Now the economy is in shambles and it doesn’t look like it will recover anytime real soon and the dealers somehow expect people to come in and plunk down 15 to 20k on a car? The old days may be over and we may be about to enter a new era where the dealerships are no longer the service centers and salesmen are just clerks. Then again things could go back to what we once had and nothing will have changed. Nothing will have changed but the customers who will have learned from the rest of the retail industry that the old prices were too high and everything can be had at the sale price. Still if the dealerships all went out of business and we got a new model would the consumer care?
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Replying to: gagrice (May 28, 2009 8:16 pm) We are closer than you think in our way of thinking. All we can hope for now is to get out of the auto industry as quick as possible.
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Replying to: dtownfb (May 31, 2009 6:08 pm) 
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Replying to: boaz47 (May 31, 2009 12:48 pm) One thing that does seem to be taking hold because consumers like it is the one-price scheme, fixed no-haggle pricing below MSRP. Our local Ford store has had so much success with that, he is now the only Ford store left for miles in all directions! |
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the one-price scheme, fixed no-haggle pricing below MSRP. Our local Ford store has had so much success with that, he is now the only Ford store left for miles in all directions! Wake up! When the dealer declares one price no haggle - what you pay is a lot more than if you haggled. That's why he is now the only Ford store left for miles in all directions! Do you really believe the dealer's one price is his lowest price? 
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Replying to: euphonium (Jun 01, 2009 10:40 am) Lots of people seem uncomfortable asking for a cheaper price so maybe they like the one-price shop better. |
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What Steve said! Truth is, I would never shop at a one-price store, but most people prefer it. And even me, I am getting lazy as I get older. The internet thing is becoming my fave now, even though I realize that if I haggled in person I could squeeze a few hundred $$ more out of the price. That's not so different from a no-haggle store, except the "one price" is being quoted to me in cyberspace and I am going with the best one I get out of several dealers. |
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Replying to: nippononly (Jun 01, 2009 4:00 pm)
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for GM. They get to dump the "old" and walk away from massive liabilities without any sort of penalty whatsever. It's really quite incredible. Among the changes they are making going forward is that they are going to insist that some dealers with competing franchises in the same showroom eliminate them, or else the dealers themselves will have their franchise agreement terminated! GM already has informed 1,124 dealerships that they won't have their franchises renewed when the agreement expires on Oct. 31, 2010. Starting this week, an additional 200 dealers will get similar termination notices. GM is sending letters via Federal Express tonight to all 5,969 dealerships. Most of them will inform dealers whether they will retain their franchises and what changes they must make to retain their stores. Some dealers will be asked to remove competing franchises from their GM showrooms. Others might be asked to upgrade their stores.... http://www.autonews.com/apps/pbcs.dll/article?AID=/20090601/ANA02/906019914/1018- (registration link) Bankruptcy is sooooo convenient for GM. With the Dow jumping UP more than 200 points after the BK announcement today, I really question whether a government-funded Chater 11 was ever really necessary here - they should have liquidated the thing. Now even more dealers will get the shaft. Guess folks looking to open dealerships will be a lot more cautious about chasing a GM franchise in future.
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Automotive News & Views Dude, where did all the dealerships go?
