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Car Buying, Automotive News, Legislation
Jan 18, 2010 (10:16 pm)
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.
#673 of 726 Re: Penske [nippononly]
Jan 19, 2010 (6:06 am)
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.
#674 of 726 Re: Penske [nippononly]
Jan 19, 2010 (3:43 pm)
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?
#676 of 726 Re: Toyota dealers put up the white flag [steve_]
Jan 28, 2010 (6:48 am)
More questions than answers from the Mother Ship.
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?
#677 of 726 Re: Toyota dealers put up the white flag [steve_]
Jan 28, 2010 (12:40 pm)
That's less than I expected, that only 36 out of 166 would be involved in the recall and thus unsellable.
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.....
#678 of 726 Re: Toyota dealers put up the white flag [nippononly]
Jan 28, 2010 (8:43 pm)
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.
Feb 02, 2010 (8:25 am)
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.
Apr 12, 2010 (4:36 pm)
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).
#681 of 726 Re: worst year ever [nippononly]
Apr 12, 2010 (6:16 pm)
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.