Category: Dealer News

By on May 22, 2017

image: Michael Sheehan AutoNation 2014

At least twenty upper-echelon executives have left AutoNation since the start of 2014, with the vast majority bailing within two years. Short stints with an employer and lackluster job stability may be the norm for bottom-rung millennials but senior managers with years of experience have a tendency to stick around a while.

That doesn’t necessarily mean there is something sinisterly “up” with the largest automotive retailer in the United States, but it does leave you wondering about its future. This concern was heightened after AutoNation’s chief operating officer, Bill Berman, suddenly resigned last week, not even four months after being named president.  Read More >

By on May 1, 2017

dealership tornado

A Fiat Chrysler-affiliated dealership in Texas was hit by a tornado Saturday night, suffering catastrophic damage to its showroom, service center, and inventory. If you’ve ever wondered how your oversized truck would stack up against the awesome power of Mother Nature, look no further than the scattered and overturned vehicles that once occupied Interstate 20 Chrysler Dodge Jeep Ram of Canton’s parking lot.  Read More >

By on April 24, 2017

Toyota Supra

In February, a Texas Toyota dealership and The Genesis Center of Kaufman County joined forces to raffle off a fully restored 1994 Toyota Supra Twin Turbo. Donated by a local resident battling cancer, the entirety of the proceeds from the draw were designated specifically to help fund the center. Genesis is a faith-based shelter which also provides job placement, parenting classes, financial management programs, spiritual counselling, material needs, and medical referrals to women and children in crisis. It is funded largely through the church or via direct donations.

All in all, the dealership managed to raise more than $50,000 for the center. However, when Rebecca Rawl was announced as the winner of the raffle in April, many stated that the name was suspiciously close to that of the wife of sales manager Danny Rawls. Toyota of Rockwall was quick to rectify its mistake, specifying that the name given had been a mistake and “Rebecca Rawls” had in fact been the lottery winner.

As you can imagine, this did not go over well.

Read More >

By on April 23, 2017

2018 Dodge Challenger SRT Demon - Image: FCA

When we announced that the Dodge Demon would have a MSRP below six-figures, the comments section was immediately populated with discussions on how that might not be the case once the strip-focused Challenger arrives in showrooms. The limited supply of early Hellcats came at a significant premium and, for a time, even gently used models were going for the manufacturer’s suggested retail price of a new one.

Gouging on the Demon seems even more assured since FCA has stated that it will be limited production to a mere 3,300 units in North America. Obviously, there is no way in hell to avoid dealer markup on a vehicle like this one but Dodge seems to think it has found a way to attenuate the matter.

Read More >

By on April 22, 2017

2015 Volkswagen Golf family, Image: Volkswagen of America

April has brought good news to diesel lovers and haters on both sides of the border.

After spending the winter (and the better part of last fall) jealously eyeing their southern neighbor’s buyback and compensation program, Canadian owners can now apply for that longed-for envelope of Volkswagen cash, as well as a one-way-ticket to hell for their emissions-rigged TDI model.

On Friday, the automaker settled court cases in Ontario and Quebec, paving the way for a 2.0-liter diesel settlement program that starts next week. The models involved are the same as in the U.S. — 105,000 units in all — and owners and lessees face similar choices as their American counterparts.

Unlike the recent shadowy roll-out of half-fixed 2015 models in the U.S., several Canadian dealers are proudly advertising the availability of “new” TDIs. Read More >

By on April 21, 2017

Fiat Tipo, Image: FCA

Say you’re a dealer with a backlog of slow-selling models. What’s the last thing you would want?

The correct answer would be a springtime deluge of more of the same, whether you asked for it or not. That’s what some angry retailers across the Atlantic are facing after Fiat Chrysler Automobiles dumped 6,000 anemic sellers into Italian dealer management systems at the end of February. Read More >

By on April 19, 2017

tdiengine

Earlier this year, Volkswagen received the necessary approvals to begin fixing vehicles equipped with 2.0-liter diesel engines that had been modified to circumvent emissions testing. While older VW and Audi models with TDI powerplants continued amassing on vacant lots via its mandatory buyback program, 2015 MY units have begun undergoing engine control module alterations.

Those vehicles are now back on sale and Volkswagen is offering them with a considerable discount attached, though the manufacturer hasn’t made a peep about the deal. Instead, the automaker is leaving it to dealers to break the news — or not. Read More >

By on April 18, 2017

[Image: Mitsibishi Motor Sales of Canada]

Maybe it’s not the product, but the dealerships? It might not be the solution to all of the problems facing an increasingly less troubled Mitsubishi north of the border, but it can’t hurt.

Under a new five-year plan, the automaker plans to revamp and modernize all of its 90 Canadian dealers. Bright, glassy and inviting, the redesigned dealerships are worth the expense if it helps draw more buyers into a customer base that hasn’t grown much in years. Read More >

By on April 10, 2017

Couple buying cat Courtesy chronicleherald.ca

Fine print exist almost entirely to float something egregious under the radar. People get law degrees and spend countless hours decrypting the tiny text to see who got the better of who in a courtroom. If you see fine print in an advertisement, it usually means the drug you desperately need has life-ruining side effects, or the deal that seems too good to be true has horrible stipulations. It’s more or less a legal way to lie to you.

Dealerships use this all the time with the classic triple zero gimmick: NO Money Down, NO Factory Financing, and NO payments until October!

However, if you take a peek below the giant block lettering promising you the greatest deal of a lifetime, you’ll see infinitesimal print that reads, “With Approved Credit to Qualified Buyers.” If you have to wonder if you are a qualified buyer, I can already assure you that you are not. Blessedly, a new website called Disclaimers Online wants to give consumers a sturdier leg to stand on.  Read More >

By on April 3, 2017

2017 Ford Taurus

The Blue Oval is dolling out Big Green to dealers in an attempt to clear stubbornly unsold 2016 models from its inventory.

The plan could see Ford dealers collect bonuses of up to $6,000 per vehicle, a new report states. As you might have already guessed, the languishing models are certainly not of the truck, SUV or crossover variety. Read More >

By on February 21, 2017

mercedes-benz logo

If Mercedes-Benz dealers manage to overhaul their stores to the brand’s updated “Autohaus2” image standards, the locations can forget about additional modifications until after 2024.

The German automaker’s promise to leave dealerships alone is abnormal, and comes after the second generation of its controversial Autohaus standard established — to the chagrin of dealerships — in 2008. Much of Mercedes’ salesforce objected to the mandatory image alterations, similarly to how Cadillac’s dealer network has responded to that brand’s Project Pinnacle.

Hoping to ease tensions as showrooms adhere to the new status quo, the 2024 pledge provides all sides with a reprieve. The Autohaus2 plan, and subsequent dealer amnesty, was penned under former Mercedes-Benz USA CEO Steve Cannon, though the company’s current North American boss, Dietmar Exler, also supports it.  Read More >

By on February 18, 2017

Honda dealer sign

It’s been a rough week at Frank Ancona Honda of Olathe, Kansas.

The family-owned dealership, in operation just southwest of Kansas City since 1961, has successfully weathered all of the storms that periodically pummel dealers of all stripes.

Then, last weekend, a body discovered on the banks of Missouri’s Big River — about a five-hour drive to the east — gave the dealership the kind of attention that no business wants. The corpse, which had a bullet hole in its head, also had a name: Frank Ancona.

No, the founder of Frank Ancona Honda is still alive and well at 85. But much to his dismay, the Frank Ancona discovered by the Big River was none other than the 51-year-old imperial wizard of the Traditionalist American Knights of the Ku Klux Klan. Read More >

By on February 13, 2017

2017 Ram 1500 Laramie Limited Crew Cab 4x4

Fiat Chrysler Automobiles has made a turnoff on the wrong road in the hopes of boosting its flagging sales, argues Jim Appleton.

The president of the New Jersey Coalition of Automotive Retailers is accusing the automaker of being reckless and short-sighted in its bid to open 380 new dealerships across the country. If FCA wants to reverse its market slide, Appleton claims, it should first take a good hard look at its product. Read More >

By on February 13, 2017

Alfa Romeo Stelvio nose logo badge

At least 20 Fiat and Alfa Romeo dealers in California have filed protests against Fiat Chrysler Automobiles after the manufacturer altered franchise agreements last December. Dealers objected to the changes, claiming it placed the struggling brands at a further disadvantage.

While the grievances vary between dealers, the protests revolve around a few key issues. FCA’s obligation to provide vehicles to the franchisees, the legal standard dealers must meet to sell those units, alterations to the definition of parts or accessories and how that might enable third-party distributors, and the constantly changing language surrounding dealer responsibilities were all common themes among the filed complaints.  Read More >

By on February 6, 2017

old dealership Chrysler

Fiat Chrysler Automobiles wants to grow its dealer network by 380 new stores in a bid to improve its dwindling market share. The plan isn’t going over so well with the company’s existing dealers, however. As the strategy could potentially threaten their present businesses, some of those dealerships are putting up a fight over the issue.

The choice to expand comes at a difficult time. Sales locations aren’t doing the best and suffering through a diluted and unpopular product lineup while the automaker shifts its focus away from cars to the more-popular SUVS and trucks. FCA sales have been on the decline for almost six months and the company’s slice of the U.S. market fell to 12 percent in the fourth quarter of 2016, compared to 13.6 percent in the same period of 2015. The expansion decision also goes against the advice of FCA’s dealership location consultant, Urban Science. Read More >

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