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Car Buying, Automotive News, Legislation
#697 of 726 Re: Calling all dealers! [michaell]
Jun 30, 2011 (11:41 am)
According to the 2010 census, the population of the town I live in is right around 48,000. We're about 15-20 minutes from the southern suburbs of Denver and about 35-40 minutes from Colorado Springs.
Even though there are a lot of makes available, the inventory selection is pretty thin.
#698 of 726 I observe with some amusement
Jul 04, 2011 (12:24 pm)
as the big dealer group in a nearby city expands and contracts with the economy. Just prior to the bubble bursting they built themselves a big new luxurious dealership near the freeway - they sell Chevy, Cadillac, Hyundai, and Mazda. Each of the American brands gets its own showroom, with a separate showroom for the Asian makes just across the street.
Then the bubble goes "POP!" and right away they are feeling the pain. Finally they abandon the separate showrooms and shove all four brands into one showwroom. The one across the street sits vacant for a while, with big hopeful signs on it that say "brand new dealership for sale!!". Gradually, the signs get shabbier and more weather-worn until they fall down entirely, and about 18 months ago the dealer group sells the whole property to Lowe's, the big home improvement chain, which promptly tears down the whole facility on that site, which had only been built brand new about 3 years before, and had been occupied for less than one.
Fast forward to summer 2011, and business at Lowe's is booming, and funnily enough business must be better at the car dealer too, because what are they doing? Building a new Mazda/Hyundai showroom and service facility, LOL!
This place is like a perfect barometer of the health of the auto sales industry, with everything in the boom and bust cycle right out there on the curb for everyone to see.
#699 of 726 Re: Calling all dealers! [robr2]
Jul 04, 2011 (4:26 pm)
I suppose the rise of the "one owner" chain of dealerships may have been inevitable, especially in small markets around the country where very little competition exists. I hope things get better sooner than later. I know I'd hate being a "captive consumer" of one business if I needed a vehicle.
#700 of 726 your car dealer association at work?
by Stever@Edmunds HOST
Sep 23, 2011 (7:49 am)
"Motor Village was set to be the ultimate Chrysler Brand dealership.
Unfortunately for them the California New Car Dealers Association dug up some annoying rule about factory-owned stores being illegal within 10 miles of a non-factory owned store and filed charges with the DMV."
Chrysler to Sell Embattled Flagship Dealership in Downtown L.A. (Straightline)
#701 of 726 Re: your car dealer association at work? [steve_]
Sep 23, 2011 (12:16 pm)
So Chrysler, who can't manage to open a legal dealership, is going to right their ship? Looking bad.....
Those comments on teh article have it right, though - the franchise laws are way out of date.
We are holding steady on dealerships in town. We did get the new Kia dealership a few months ago. We also have a Chevy dealer within 20 miles again.
#702 of 726 another reason to close
by Stever@Edmunds HOST
Oct 21, 2011 (7:08 pm)
“Each year, dealers collectively invest billions of dollars in facility upgrades, much of it mandated by the auto manufacturers,” NADA Chairman Stephen W. Wade (above) told the Automotive Press Association in Detroit on Thursday. “These costs have a significant impact on dealer balance sheets, in many cases severely straining them and in some cases even persuading a dealer to leave the business rather than commit such large sums.”
Dealer Group To Study Automaker Image Programs (AutoObserver)
#703 of 726 Re: another reason to close [steve_]
Oct 22, 2011 (10:47 am)
But what that article fails to say is that dealers get some of that investment reimbursed by the manufacturer by meeting sales, CSI and other goals.
By having to continually invest in their facilities, it forces dealers to keep up with the times. Been in a showroom with wood paneling in the past 10 years?
#704 of 726 Re: another reason to close [robr2]
by Stever@Edmunds HOST
Oct 22, 2011 (12:07 pm)
Yeah, Boise Hyundai. The storefront was spiffed up so it looks okay from the street, but it's got that concrete block aura about it once you hit the desks. The Hyundai dealer was the typical "let me go see the manager" kind of shop.
Then again, I want a deal, and if I go to a fancy showroom, I'm going to wonder how much of that overhead is coming out of my pocket.
Jun 13, 2012 (7:25 pm)
"Sixty-six auto dealerships opened in the first three months of the year, and the number of people employed in that part of the automotive industry is up, too.
The uptick comes amid growing auto sales. Last year, U.S. auto sales rose 10.2 percent and sales are up 10 percent through May.
In May, according to the National Automobile Dealers Association, the nation's new and used car dealers added 2,400 jobs to 1.08 million. May's total payroll was 30,000 greater than in May 2011."
More jobs, stores for auto dealers (Detroit News)