GM is Paying Cadillac Dealers to Ditch the Brand

Cadillac dealers disinclined to spend a sackful of money on revamping their businesses to sell and service electric vehicles received some moderately good news this month. General Motors is willing to issue them fat stacks of cash for stores that cannot rationalize the sizable expense of installing charging stations, training staff, and retooling the garage.

While it smacks of the consolidation efforts headed by Caddy’s former President Johan de Nysschen in 2016 with Project Pinnacle, and makes us wonder how the brand plans on turning a profit if it keeps eliminating storefronts, GM thinks buying out dealers who don’t want to participate in the EV experience is the way to go. Though the company has expressed an interest in gradually embracing a more digitized sales model as Cadillac strives to become an exclusively electric brand by 2030.

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European Car Sales Plummet as Continent Revisits Lockdown Protocols

If you hadn’t already heard, Europe began taking actions to prepare itself for another pandemic-related lockdown. Last month, leadership in Germany and France noted that existing restrictions were “not enough anymore” and began issuing specific citizens “certificates” allowing them to move freely within the country. As you might have imagined, this didn’t exactly bolster automotive sales.

While most of the new restrictions were implemented at the tail end of October, they’ve foreshadowed additional measures introduced as more countries climbed aboard ( like the UK’s second banning of sex with people from outside of the household) and began signaling that automotive sales were about to be routed. Gains made in September look to be completely undone, with Germany’s Federal Motor Transport Authority stating new-car registrations fell by 3.6 percent in October (vs 2019) on Wednesday. But that’s only the beginning of the bad news.

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NADA Expands Diversity Quotas, Implements New Equity Programs

The National Automobile Dealers Association (NADA) has announced a decision to strengthen diversity quotas by dividing the country into three distinct regions and passing a bylaw amendment that expands the number of at-large seats reserved women and ethnic minorities — moving both from two to three positions.

While the organization had been discussing the matter all summer, with CEO Peter Welch telling NADA members racism and discrimination had “no place in the car business” and needed to be “rooted out,” it has also begun making moves that support new inclusion and equity programs. Roughly 41 percent of the NADA employees are women at present, with another 20 percent representing minorities. But Welch said the group could and should strive to improve those numbers.

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Nissan to Keep Closer Tabs on Dealerships in 2021, Retailers Annoyed

After enduring a series of rough years resulting in some unsettling financial reports, Nissan is doing its utmost to turn things around. Following its first annual loss in 11 years, the company announced a plan that would include cutting 20 percent of its global lineup to make way for newer models, eliminating unnecessary production capacity, and cutting corners (and jobs) just about everywhere in order to save $2.8 billion off of fixed costs. This is also being done to make way for a leaner, meaner Nissan, and make room for newer vehicles it believes will be essential to remain competitive.

It’s also hoping to spruce up dealerships to make them more desirable locales for customers ready to do their business. That includes an increased number of factory audits moving into 2021 — partly as a way to make up for the limited number that were conducted this year thanks to the pandemic and partly as a way to make sure nobody is doing anything financially untoward. But there are some concerns among owners that Nissan may end up bullying shops unnecessarily.

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NADA to Become Virtual Event Next Year

The National Automobile Dealers Association (NADA) has decided to go digital to combat the coronavirus pandemic, canceling plans for what would have been an in-person event held at the end of January. Plans now include a virtual, mid-week conference starting on February 9th, which organizers agree will be far better than a bunch of people enjoying themselves at the Ernest N. Morial Convention Center in New Orleans over a long weekend.

Truth be told, there wasn’t much of a decision to be made. New Orleans may have decided it’s ready to open up restaurants, retail outlets, and giant shopping centers to the public but trade shows and bars have proven themselves bridge too far. While locals have accused the city of using COVID-19 as an excuse to gentrify certain areas of the city, drunks have a penchant for forgetting social-distancing rules. NADA would have brought in thousands of dealers and vendors, many of whom would be engaged in frequent bouts of close-range talking between beers. That’s to say nothing of the forbidden romantic entanglements (cheating) your author is just going to assume happens.

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AutoNation Ending Aftermarket Collision Parts Division - Shrewd or Crude?

AutoNation’s collision parts division is scheduled to be eliminated by the end of 2020, freeing up some cash after the two-year endeavor proved less than profitable.

Former CEO Cheryl Miller had made it clear that one of her main goals for the company was to ramp up services in an attempt to enhance revenue and diversify the business. But this tactic has proven perilous for the automotive industry at large, often offsetting opportunities to make money with sizable financial risks.

Mobility is probably the best example of this, as its broad enough to encompass everything from self-driving vehicles to subscription models and relies on the market maturing into something that will presumably see returns on investment years down the line. However, AutoNation’s diversification was far more traditional. It seemed like a sure thing, since the collision parts business was forecast to grow over the next five years. In fact, despite being the the largest automotive retailer in the United States, the company actually owes 46 percent of its gross profit to parts and service. Selling cars (both new and used) only accounts for 24 percent — with the rest coming from finance and insurance.

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Automotive Retail Jobs Are In Rough Shape

Having already pulverized the dead horse of waning auto sales into a fine paste, we’ll now turn our focus on how it’s impacting employment among automotive retailers — squashing another pony.

Much of the information up until this point has been anecdotal and conditional to the North American response to COVID-19. Furloughs were rampant as the pandemic progressed and new safety rules seemed poised to cripple sales moving forward. There was an obvious general plight confronting automotive retailers, but we couldn’t nail down what that meant in terms of job losses.

We still don’t, frankly. But it is starting to become obvious that there isn’t much reason to be exceptionally optimistic. AutoNation recently announced that around half of the 7,000 workers it furloughed in April won’t be coming back. Despite some retailers claiming not to need such drastic cuts, plenty are following AutoNation’s model. With fewer customers and sweeping restrictions on how showrooms can be operated, there’s little reason for there to be all hands on deck. But just how many will be forced to abandon ship this year?

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AutoNation Cutting Roughly 3,500 Jobs

After furloughing staff in response to the coronavirus pandemic, AutoNation has gradually allowed employees to return back to work. Half of the 7,000 people asked to take it easy in April won’t be coming back at all, however.

The automotive retailer has decided to permanently cut 3,500 jobs so it can focus on its bottom line and what it has unsettlingly called “the new normal” — a term frequently used to rationalize unsavory actions taken during the health crisis.

With customers unable to leave their homes to purchase cars, it’s to be expected that America’s largest automotive retailer would need to engage in some light restructuring. It also happens to have the best excuse imaginable for nuking a large portion of its workforce. Back in April, when the AutoNation was furloughing employees, it received nearly $95 million in federal small-business funds via the Payment Protection Program (PPP). A subset of anonymous staff members were said to have leaked the details to the media after deciding the firm was taking cash allocated for smaller outfits.

Outrage ensued and the company sheepishly returned the money.

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Reeling From Global Health Crisis, Dealers Embrace Online Sales

Auto dealers and manufacturers around the globe have spent the past several years examining the usefulness of digital car sales, but the practice hasn’t been embraced as warmly in the United States, where state franchise laws often prohibit direct sales from automakers to anybody but a licensed auto dealer. Critics say this allowed retailers to become middlemen that customers are forced to haggle, while advocates explain that the system promotes U.S. jobs and provides a local resource for those needing repairs.

Neither are incorrect, yet dealerships have continued to buck online sales, even after manufacturers attempted to work with them on various pilot programs.

With COVID-19 keeping a large portion of the American population at home, dealers are revisiting online sales as a way to cut their losses. Digital transactions now look to be a necessity if shops hope to survive a prolonged pandemic. While many see this as a temporary measure, once the genie is out of the bottle, he’s difficult to put back inside… and may be far less benevolent than we’d like — even if we’re desperately in need of one of those wishes.

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BMW 8 Series Rubbing Dealers the Wrong Way

BMW dealers are having a problem with the 8 Series. The returning flagship appears to be a bit too rich for North American tastes and retailers are growing annoyed.

According to Automotive News, retailers are upset that BMW didn’t issue enough marketing support to make the public aware that it even exists, and feel that the amount of configuration available works against the vehicle. As a result, many dealerships are sitting on expensive halo vehicles nobody seems to want; the 8 Series now has the highest day supply of any BMW model currently produced.

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U.S. Auto Dealerships Ask Trump If They Can Stay Open Amid Outbreak

Like every other business in the United States, auto dealers are attempting to implement changes that would allow them to operate safely amid the coronavirus outbreak. Undoubtedly petrified by the massive hit the Chinese car market took after COVID-19 reared its ugly head in Wuhan, they also hope to remain open while other business stay closed.

On Tuesday, the National Automobile Dealers Association (NADA) and Alliance for Automotive Innovation (AAI) issued a formal letter requesting that President Trump consider dealerships and service centers as “essential operations when federal, state, and local officials impose certain requirements due to the coronavirus outbreak.” While we’ve already seen dealerships embrace new tactics to comply with public health initiatives, it’s assumed they’ll be shutting down just, like most automakers plan to. However, retailers worry their diminutive cash reserves (in relation to manufacturers) won’t see them through a prolonged shutdown while the broader industry wonders who will repair automobiles during the pandemic.

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Report: U.S. Dealerships Shrinking in Number, Throughput Down for 2019

The annual Automotive Franchise Activity Report asserts that the number of new-car dealerships in the United States has shrunk for the first time since 2013. The difference is marginal when viewed from a national perspective, but could support prior theories that larger dealer networks are consolidating while smaller, less competitive shops are being forced out of the market. The report claims the total number of storefronts fell from 18,294 in 2018 to 18,195 at the start of 2020. Dealership throughput was similarly down, decreasing by eight units from 2018 to 940.

While not particularly alarming, the figures do seem to mirror national population trends when placed under a microscope. The states that lost the highest number of showrooms tended to be regions that had the most trouble preventing people from moving.

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2020 Corvette Dealer Allocations Reportedly Cut

The extended UAW GM strike of 2019 was the longest the automotive industry endured in a couple of generations. At the time, General Motors said the situation would delay production across its entire model lineup, including the 2020 Corvette. The mid-engined C8 is all-new, encouraging plenty of interest. It was assumed the model was destined to be sold out months before the strike occurred.

While GM later confirmed models were still available, it warned that the strike might delay its launch and could impact dealer allocations. In November, the manufacturer said the C8 wouldn’t arrive until February of 2020, though the latest word from retailers indicates GM will cut back on allocations of the C8.

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Dealers Forecast Modest Sales Decline in 2020

The National Automobile Dealers Association (NADA) released its annual new-vehicle sales forecast for 2020, estimated a modest decline in U.S. volume. The announcement dropped on Tuesday, citing rising transaction prices as the probable cause. With fewer sedans on the market ( especially among domestic automakers), customers are shifting to crossover vehicles with higher price tags. Fortunately, the United States’ economy has remained roughly as stable as the cost of fuel — avoiding market conditions that normally encourage customers to swap into affordable economy cars or simply hold onto their current ride.

“We expect new light-vehicles sales will come in at 16.8 million units for 2020, roughly a 1.2 percent drop from 2019 sales volume,” NADA senior economist Patrick Manzi explained. “As for 2019, it appears new vehicle sales will best the expectations of most in the industry by topping 17 million units for the fifth straight year.”

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Changing Trajectory: In Giving Lincoln Its Own Space, Can Ford Combat the Wandering Eye?

My father has historically been a Ford man. Despite numerous forays into Chevrolet, Chrysler, Volkswagen and Toyota, he has always returned to the Blue Oval when the time came to purchase a keeper. Other nameplates came and went, receiving slightly less attention, but there was always at least one well-maintained Ford in the garage. As a result, I became familiar with dealerships using the suffix “Ford Lincoln Mercury” at a very young age.

For me, it was an opportunity to ogle the fancier sedans my father claimed didn’t make financial sense. “It’s the same car,” he would always say. “This one just costs more.”

When you’re eight and have nothing to distract yourself with other than the swizzle sticks you stole from the coffee area, fatherly advice has a way of sinking in. I’ve often wondered why automakers would even dare place their premium offerings so close to their less-expensive models. But times have changed.

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Dealership Dilemmas: Nissan Communications Reportedly Back Online

On Saturday, Nissan’s North American dealerships found themselves with a problem. A power outage at the automaker’s data center in Denver disabled a system dealers use to order vehicles, procure parts, check on recall statuses, obtain rebate information, and file warranty claims. As a result, the manufacturer’s communications in the U.S., Canada, and Mexico were disrupted. “Some of our dealer business applications have run in a reduced capacity using manual processing,” Nissan said on Wednesday.

Dealers were not pleased.

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Volvo's Subscription Service May Breach California's Franchise Law

It’s no secret that Volvo dealers aren’t keen on the factory subscription plan. Last December, the California New Car Dealers Association even asked the manufacturer to end Care By Volvo on the grounds that it was taking business away from storefronts. The automaker responded by saying the service had proven popular with consumers, attracting new customers to the brand while reassuring dealers that version 2.0 of the subscription plan had been approved by the Volvo Retailer Advisory Board and would give shops more to do.

Rather than take the wait-and-see approach, the California New Car Dealers Association petitioned the state’s New Motor Vehicle Board. Last week, the group unanimously voted to direct the state’s DMV to investigate Care by Volvo and four claims that the service violates provisions of the California vehicle code — potentially leading to disciplinary actions.

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Ask Bark: Can They Actually Do This to Me?

When it comes to buying new cars, I don’t have much patience. When I bought my Focus RS in 2016, I spent less than an hour doing the whole deal, including actually deciding what car I wanted to buy. Got a blank check approval from my bank, spitballed some ideas with my older brother and my good friend Bozi, and then put down a deposit on a car at a dealership about a thousand miles away. But there was one time when I tried to have patience, and was sorely disappointed.

Eleven years ago, I put down a $5,000 deposit and placed an order for a BMW 135i with my local BMW dealer. It was the launch year for the ill-fated 1 Series in the states, and I wanted to have one of the very first Ones to hit our shores. I ordered a very stripped down version — black, stick shift, cloth seats, no roof. After about 12 weeks, the dealer called to let me know that my car had arrived. Well, a car had arrived… but certainly not mine.

This example was an automatic. But that wasn’t the only thing they got wrong. They added somewhere in the neighborhood of $5k to the sticker, including nearly every option, even a red leather interior. Imagine my disappointment and frustration with the dealer, who had recycled sales people a couple of times since my order and couldn’t seem to track down anything about it, not even the original order sheet.

I asked for my money back, which they reluctantly gave me, and I ended up buying a Pontiac G8 GT instead — not a bad trade. But not everybody who goes through the ordering process is so fortunate. Click the jump for a question from our friend Andy about his experience in ordering his own custom German whip.

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Dealer Check-up Reveals Widespread Profit Loss

U.S. light-vehicle dealers reported an operating loss for the first time since the National Automobile Dealers Association (NADA) began collecting data in 2009. While everyone continues reporting pretax net profits, concerns are beginning to swell around their dependency on factory incentives, which are not included in operating tabulations.

NADA’s analysis of 2019’s first-quarter auto sales shows that incentive spending is down compared to the same period a year ago. The group expects above-average discipline from automakers in terms of incentive spending throughout the year. According to J.D. Power, average incentive spending per unit was down $119 to $3,821 through March 2019 — with the brunt of that going toward trucks. However, if sales remain low, spending may creep back up to help clear out languishing inventories.

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Dealers Share Details of Ford Bronco Prototype, New Off-road Vehicle Family

Dealers got an early look at a prototype build of the upcoming Ford Bronco. Gathered in Palm Beach, FL at the behest of the automaker, dealers were asked to hand over their phones in order to avoid any leaks. Fortunately, their memories were sufficient in giving us a better idea as to what to expect come 2020.

While the event’s focus stayed on the Bronco and some of its more-interesting features, Ford also shared its plan to develop a family of off-road vehicles to complement the model. Introductory vehicles include the Bronco, its smaller counterpart, and a little unibody pickup to slot beneath the Ranger.

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Modern Times Spell Trouble for Mom-and-pop Auto Dealers

When I was a lad, there were two family-owned and operated dealerships within walking distance of my home. Upon reaching driving age, one had already closed while the other began adding storefronts in different towns. It now has three locations, ensuring a meaty inheritance and lifelong job security for several members of my graduating class.

It’s the nature of the free market and a familiar story. According to an assessment from the National Automobile Dealers Association, singular showrooms have gone from 7,514 strong to just 4,904 between 2008 and 2018. That’s a 35-percent decline, whereas the number of dealers with 10 or more stores increased 62 percent over the same period.

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NADA 2019: Ford Outlines Rewards Program, Says Standalone Stores Essential for Lincoln

Last year, Ford announced its intent to develop a rewards program aimed at keeping customers engaged — while also making it worth their while to stick with the brand for their next purchase. While customer rewards are old hat, regardless of industry, automakers are busy devising new ways of using the venerable marketing theory to improve customer retention. It’s an urgent gambit, given today’s cooling market.

General Motors launched its “My GM Rewards” loyalty program in 2018, using a points-based system to reward customers who use OnStar’s new services, purchase a new vehicle, or service an older one. Those points can then be redeemed, knocking some cash off a subsequent GM purchase. Meanwhile, Honda previewed “Dream Drive” at the recent Consumer Electronics Show — a concept with its own redeemable points system (one that incorporates some potentially unsettling gamification within the app).

While Ford’s FordPass-based efforts appeared similar, it wasn’t until this month’s North American Dealers Association (NADA) meeting that the automaker was willing to flesh it out.

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NADA 2019: Toyota Promises Dealers More Utility Vehicles, Plans to Ignore EVs

While the closing day of the 2019 National Automobile Dealers Association meetup revolved around charitable opportunities, engineering equality in the workplace, and a talk from author, pro golfer, and USAF veteran Major Dan Rooney on the merits of personal accountability, the rest of the event focused more directly on the auto industry.

One of the larger announcements came from Jack Hollis, general manager of Toyota North America’s Toyota division, who told dealers that his company intends to introduce 19 entirely new, redesigned, or refreshed vehicles over the next three years — focusing on utility models, but not ignoring cars. Toyota and Hollis are adamant that the brand can take advantage of other manufacturers abandoning sedan sales by both keeping them in its roster and continuing to improve them. Still, they acknowledge that SUVs and crossovers are essential in wrangling today’s buyers.

The secret, according to Toyota, is having a diverse lineup. However, pure electrics ( and maybe minivans) don’t make the list, at least until sales data makes a better case for them.

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How Would Dealers Rate Their Brand? Scorecard Ranks Winners and Losers

Cox Automotive, in conjunction with Automotive News, just released its Retail Brand Scorecards Study for 2018. The survey is interesting in that it ranks the perceived value of automakers by assessing how desirable they are to dealerships via an A-through-F grading system. Though, as engaging as it might be to look at these traits from a highly specific viewpoint (how dealerships see you in relation to specific manufacturers), we’re not sure how useful the average consumer will find them. Dealers and industry geeks, however, may want to take notice.

“This study represents a comprehensive review of brands from a unique perspective — how well they support the success of dealers,” said Cox Automotive Chief Economist Jonathan Smoke. “As we assembled the data and began to see how the brands performed differently, we started looking at the results as grades in high school, where the most well-rounded and high-achieving students are those who perform well across a wide range of disciplines. With that scorecard framework, we found a clear set of brands that are honor-roll worthy, as they are in essence the hardest-working, most successful students.”

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Retiree Trades Quintet of Toyota MR2s for One Mazda MX-5

Last week, a retired college professor walked into Missouri’s Coad Toyota with an interesting proposal. He was willing to part with five first-generation Toyota MR2s as a trade-in for a gently used 2016 Mazda MX-5 Miata.

Considering the amount of maintenance five vintage MR2s must require, maybe he’s not the absolute madman we initially presumed. Since the deal went down in Missouri, he probably spent a ludicrous portion of his time on rust prevention alone.

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Distressed Dealers Convince Lincoln to Postpone Standalone Stores

This time last year, Lincoln was busy promoting its Experience Centers — storefronts that promote the brand and its products, but don’t serve as active dealerships. Then, in August, it asked around 80 Ford/Lincoln dealerships to commit to building separate Lincoln-only facilities by July. It was an attempt to elevate the premium brand by making it appear more exclusive, akin to what Cadillac attempted with Project Pinnacle and what Hyundai Group wants to achieve with Genesis.

Unfortunately, all of these programs garnered a “mixed response” from dealers. Many complained that the cost of building a separate showroom for higher-end models is prohibitively expensive. That has also been the case with Lincoln. The California New Car Dealers Association even wrote Ford Motor Co. last month, asking it not to punish storefronts that fail to divide their facilities, and it looks as though the automaker has acquiesced.

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Genesis, a Brand That Barely Exists in Terms of Sales, Begins a Slow Ascent

As we explained earlier this year, the fledgling Genesis brand is going through puberty. The brand’s constantly evolving dealer strategy is now set in stone, or what passes for it in the world of Genesis, but the process of separating the brand from its Hyundai parent won’t take place overnight. There’s dealers to whittle down, licenses to gain, standalone stores to build, and inventory to stock.

It’s a work in progress, but the 2019 models — which now total three — are beginning to find their way to more buyers, Genesis claims. Be patient.

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California Auto Dealers Ask Volvo to End Subscription Service

The California New Car Dealers Association is requesting that Volvo immediately end its Care by Volvo subscription service within the state. According to the group, the automaker is in violation of California’s franchise and consumer protection laws.

It’s been a long time coming, as Care by Volvo is clearly designed to minimize dealer interactions. Anders Gustafsson, CEO of Volvo Cars of North America, even said the program claimed as much as 15 percent of the XC40 crossovers intended for dealerships this year.

“It’s really the same concerns from everybody, and it’s just that they don’t feel secure,” Gustafsson of said dealers last month. “They’re afraid we’re going to take something away from them … I would say the biggest question mark around subscriptions is that consumers need to decide that. Our retailers are asking, ‘Please let us be involved, because we can help.'”

It looks like they’re tired of begging.

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Porsche Aiming to Expand Commitment to Classic Cars

High-end sports cars are much more likely to endure the onslaught of time that inevitably forces most automobiles into the junkyard. Why such vehicles might not all serve as pampered automotive “investments” for wealthy individuals, most are still well cared for and subject to fewer harsh winters and daily commutes than their mainstream counterparts.

Porsche claims that over 70 percent of all vehicles it has ever manufactured are still in operation today and the majority of those cars reside in the United States, not Europe. As a result, the automaker wants to expand its Porsche Classic operations in the region — helping owners keep their vintage machines in pristine condition while earning dealerships some side cash in the process.

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Ford: Get All Your Aftermarket Ranger Stuff From Us

We’ve told you already that the upcoming Ford Ranger, which hits dealer lots in January, stands to become an endlessly customizable midsize pickup. Reports of options galore cropped up well ahead of the truck’s release.

Now, there’s more news on that front. While the usual factory add-ons will be part of any would-be Ranger owner’s buying decision, Ford doesn’t want those customers to look at another catalogue or website once the vehicle’s sitting in their driveway. The automaker wants buyers to get all of their outdoorsy aftermarket fittings from the dealer.

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Dealer Advisor: Prepare for the Worst or Be Destroyed Over the Next Two Decades

Dealership advisory firm Presidio Group has painted a very bleak picture for its clients. With analysts predicting a downturn in auto sales, the company recommends dealers establish a robust 20-year plan that will enable them to perform in the new climate or get out of the business entirely.

Brodie Cobb, founder of Presidio Group, cites a glut of studies claiming dealerships will struggle as manufacturers shift into mobility companies and alternative modes of transportation are more broadly encouraged.

“We’re not particularly pleased that the world is changing the way it is. We would rather have it stay the same, because owning dealerships is a very nice return and profitable business that we enjoy very much,” Cobb told Automotive News in an interview. “So when we talk about this, it hurts us, too. We, too, need to understand the future, form a plan and not just put our head in the sand and hope it goes away.”

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Dealerships Shuttered In Wake of Legal Action

Remember this saga? Earlier this year we told you about All Pro Nissan, yet another entrant into the “Dealers Behaving Badly” file. At the time, the stores – owned by a couple of ex-NFL linebackers and a veteran of the auto industry – were being examined for all kinds of financial chicanery ranging from floorplan irregularities to missing cars.

At the time, it was reported that All Pro Nissan was open but unable to sell or lease vehicles due to “restructuring.” Now, it appears the lights have been turned off for good.

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Dealer Association Chair: Relax, Critics - Electric Car Owners Still Have to Visit the Shop

National Automobile Dealers Association chairman Wes Lutz doesn’t have much time for critics who claim traditional car dealers don’t want to sell you an electric vehicle. As EVs boast fewer moving parts and lower running costs, green car advocates often say dealerships view the vehicles as a threat to a business model that relies heavily on service visits for profit.

Not so, says Lutz. The parts that do move are the ones they profit from.

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The New Benefits of Brand Loyalty

For the most part, the major benefit of brand loyalty is not getting into an argument with your family members at the dinner table. Grandpa worked for General Motors, Dad buys Chevy exclusively, and you decided not to buck the trend. You even bragged about Aunt Beth helping you get a sweet deal on that new Malibu, while everyone nodded in approval between bites of turkey.

However, there are more tangible rewards for sticking with a singular auto brand. Now that the Western market has surpassed peak growth, manufacturers know that it’s going to be a lot harder to reel in new customers. They’ve decided to shift tactics by offering incentives to existing customers in the hopes that they won’t leave them the next time they need a fresh vehicle.

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Job One for Ford This Week: Placate Antsy Dealers

A major product shift and looming job cuts have some Ford dealers nervous about the future. Many would like to know what to expect under their showroom lights in the coming years, and this week brings an opportunity for the automaker to ease those worries.

Under Hackett’s leadership, communication often seems to take a backseat to vision, so the annual Ford dealer meet-up in Las Vegas brings with it high expectations of a great game of show and tell.

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Rewarding Bad Behavior? Honda Dealer Plans in Texas Raise Eyebrows

You may recall news from earlier this year of All Pro Nissan and its associated dealers, most of whom starred in Episode #4391 of the seemingly never-ending series titled “Dealers Behaving Badly.”

At the time, the entities – owned in part by a consortium of former NFL players – were being taken to task by the captive finance arms of Nissan and Hyundai over allegations that parts of the dealer group sold hundreds of vehicles, worth more than $10 million, out of trust and also failed to repay floorplan loans.

So what’s the punishment for these alleged misdeeds? Why, another brand new dealership, of course!

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Lebanon Ford Still at It, Offers 800 HP Mustang Hellion for a Tick Under 40K

We told you about the bargain performance coming out of Ohio’s Lebanon Ford back in 2016. At the time, the dealer offered a base Mustang GT manual fitted with a Roush supercharger, good for a (then) Challenger Hellcat-beating 727 horsepower. Drive it away for $39,995, Ford and Roush warranty in hand, the dealer said. And many did.

The fun hasn’t stopped at Lebanon Ford in the ensuing years. There’s still an available Roush package owners can drop into their existing GTs, and buyers can still tell the dealer to hand over a Roush-ified ‘Stang at new car time. Power now stands at 700 hp. If that’s not enough grunt, a recent addition to the LFP (Lebanon Ford Performance) family is the Hellion — a Mustang GT that eschews the supercharged lifestyle in favor of a twin-turbo setup capable of generating 800 hp at the crank.

Should owners feel like swapping out the wastegate spring, power levels in the four-figure range become possible. Price? Again, starting at $39,995.

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Audi's Conventional-looking Electric Crossover Will Remain (Mainly) Hidden From Public View

Marketing materials aside, visitors to Audi dealers in the near future won’t see much of the new E-Tron crossover. They’ll have to ask about it first, and, if they’re in luck, there’ll be a demonstrator on hand.

Audi’s proceeding cautiously with its mass-market EV. For now, it’s only taking refundable reservations from customers, hoping that keeping the E-Tron out of the normal vehicle flow will help it turn a profit — a problem facing most EVs.

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Hyundai Wants Customers to Return for the Friendship, Not Bargains

Hyundai has a problem to solve. Interest rates are on the rise, car buying is on the decline, and it has a newish luxury division forced to share showrooms with its regular models — most of which are moving out of the bargain bin.

However, rather than continue incentivizing the crap out of its vehicles, the automaker has decided to improve its dealership experience. There’s no official word on the amount of hugs Hyundai plans to dole out to prospective buyers, but the automaker does claim it wants to instill a warm fuzzy feeling in its clientele.*

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Sacked: Dealerships Owned By Former NFL Linebackers Face Legal Action

The financial chicanery of a few automotive dealerships continues apace, with a group of Nissan and Hyundai stores finding themselves in several million dollars’ worth of hot water.

Reps for the captive finance arms of those two brands allege that five dealerships owned by auto retail veteran Michael Saporito and former NFL linebackers Jessie Armstead and Antonio Pierce sold nearly $10.5 million worth of vehicles out of trust. Nearly a hundred machines are allegedly missing, as well.

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As Inventory Dwindles, Genesis Prepares to Turn It On Again

If you noticed your neighbor adding a glistening new Genesis model (the midsized one or the bigger one) to their driveway in the past month, you’re a member of a very small group.

Genesis, the luxury marque born of Hyundai, didn’t sell many vehicles in August, but that’s all part of the plan. The brand’s executive director claims there’s less than a month’s worth of vehicles currently in the U.S., but once those ships arrive, look out. Actually, a better way of phrasing that is: “prepare yourself for things to occur in a gradual and measured fashion.”

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Do You Have to Let It Linger? Dealers Struggle With Old Stock During a Season of Renewal

Spring might be a time of renewal, but fall is generally when old gives way to new on dealer lots. Not necessarily, though. If the “new” 2017 Fiat 124 Spider I recently spotted against a backdrop of 2018 Ram 1500s on my local FCA lot is any indicator, some brands have a tough time turning over a new leaf, so to speak. (Fiat’s problem is especially grim compared to other brands.)

Bloated inventories, scattered new model introductions, and a fickle buying public have made “new car season” less apparent than ever, and the problem seems to be growing worse.

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What's the Score? Cali GM Dealer Wins Against, Erm, GM

The never-ending, weirdly symbiotic, and often counterproductive relationship between OEMs and their dealers wrote another chapter yesterday, as a court in California may force GM to rethink the way it measures and administers sales effectiveness at the dealer level.

Sacramento-area dealer Folsom Chevrolet was deemed by The General as having failed to meet sales expectations and pursued the revocation of its franchise a couple of years ago. Folsom was having none of it, dragging the state’s New Motor Vehicle Board into the fight — an entity which handed down its decision in Folsom’s favor on August 13th. GM remains unhappy.

Remind me again how the dealer model is such a good idea?

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Old Man's Game: Car Dealerships Can't Hold Onto Younger Employees

There’s a popular notion that young people are ruining the automotive industry. It probably has something to do with the steady climb of average transaction prices and a median income for millennials that’s comparatively worse than that of their parents at a similar age. Plenty of evidence exists that younger individuals aren’t particularly fond of the car-buying experience.

They don’t seem particularly fond of the car selling experience, either. Millennials account for nearly 60 percent of dealer hires but shops lose over half of them every year, according to a study by the management firm Hireology. That’s an impressively high turnover rate that probably isn’t helping turn around stagnating car sales, as it takes a while to master any profession.

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Playing With Numbers: Texas Dealer Accused of Major Fraud

The Reagor Dykes Auto Group was formed in 2006 after Bart Reagor, shown above, teamed up with a business partner to create a company that now eclipses half a billion dollars in annual sales. This is accomplished through a myriad of manufacturer franchises ranging from Ford to Chevy to Toyota, not to mention its dozen or so rooftops dealing solely in used cars.

Now, the company is facing allegations of major financial chicanery. In court documents filed last week, Ford Motor Company accuses Reagor Dykes of running one of the “largest floor-plan financing frauds in the history of the United States.”

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No Ford Buyers Allowed: To Seize the Future, Lincoln Needs Fancy Stores and Personal Space

The product pipeline is already in place, but what about the dealerships? That’s where Lincoln Motor Company’s focus now lies, as it begins rolling out a plan that will see standalone Lincoln dealerships pop up in 30 high-volume markets.

As the premium brand attempts to shuffle off sliding sales with a utility vehicle onslaught, the brand wants those high-rising vehicles shown off on well-lit runways encased in glass cubes. Lincoln calls this design “Vitrine.” It’s not just important to the brand — it’s “critical.”

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Genesis Hits the Partial Reset Button As It Awaits 2019 Models

We told you yesterday of the hurdles facing the fledgling Genesis brand, a standalone luxury marque launched two years ago under the umbrella of Hyundai Motor Group. Currently, just two models reside in the Genesis stable — the midsize G80 and full-size G90, with the 3 Series-fighting G70 bowing later this year.

It’s been a slow, measured start for the brand, but a shifting strategy for its U.S. dealer network means these early days haven’t been easy ones. A Genesis spokesman tells us that the brand’s inventory is being whittled down ahead of the launch of the revamped network alongside fresh, 2019 model year vehicles. Just how many Genesis dealers will exist at that time is unknown.

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It'll Take More Than a Dealership Makeover to Propel Mitsubishi Upmarket

At the end of the day, brand perception comes down to product, but no one likes visiting a dingy dealership. As the once-endangered Mitsubishi awaits a slew of lucrative new products (crafted with Nissan’s help), it figures it may as well begin sprucing up its dealer presence — not just in the U.S., but worldwide.

While the automaker’s U.S. division sits back and basks in the glow of June’s 46.2 percent year-over-year sale increase, head office is busy planning 5,000 renovations.

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Dealers Think Jeep's New Grand Wagoneer May Have Missed Its Sales Window

Fiat Chrysler has some of the best three-row vehicles on the domestic market right now but, if you’re not a fan of minivans, you probably couldn’t care less about them. Dodge’s Grand Caravan remains a darling for budget-conscious families and fleet managers, despite being stuck in its fifth generation for over a decade. Meanwhile, the Chrysler Pacifica takes the Caravan concept and adds modern refinement at a higher price point.

The problem is that neither are SUVs. Even though Dodge does have the Durango on offer already, FCA chief Sergio Marchionne has been begging engineers to come up with a three-row SUV that would surpass the Ford Expedition and Chevrolet Suburban since at least 2013. The theory was to produce a hulking and rugged luxury vehicle that could compete with Land Rover and swipe some business from the domestic luxury rivals. He was heralding the return of Jeep Grand Wagoneer.

However, the vehicle’s development has been plighted with delays and the initial vision has become muddied. While it’s still coming, dealers are beginning to wonder if the model has missed its opportunity as gas prices climb, sales stagnate, and material costs rise.

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What the Hell Is Happening With Genesis' Dealer Network Strategy?

Ever since Hyundai launched Genesis as a separate luxury brand, there’s been plenty of confusion as to how to distribute its vehicles. The company initially said Genesis would have an entirely separate U.S. dealer network within three years. Then it said existing Hyundai retailers could continue to sell luxury models if they met a certain criteria, but noted many would become ineligible as standalone stores became the norm.

Now Genesis is saying all Hyundai dealers are in the running, but they’ll need to have separate facilities for the luxury brand if they want to sell them. While the change isn’t drastic, it’s the third time the brand’s parent company has revised its dealer strategy, leaving us confused as to what the automaker’s plan was all along.

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Fiat Chrysler's Pulling Out All the Stops to Boost Ram Sales Numbers

2019 Ram 1500s have begun arriving on dealer lots, but only in limited numbers. Not every trim and drivetrain configuration is currently available, as V6-powered models are not yet eligible for sale. Meanwhile, production of the previous-generation model continues.

Hoping to get more Ram transactions on its sales sheet, Fiat Chrysler Automobiles has embarked on a multi-pronged strategy to lure buyers into any and all of its trucks and vans. In many cases, the sales will exist only on paper.

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Binning the Bland: Nissan Planning a Great Dealership Makeover

While there’s nothing inherently wrong with a typical Nissan dealership, no one’s going to mistake one for the Taj Mahal. They’re functional structures, designed to hold salespeople that can walk you through the terms of a loan. Do they really need to be anything more?

Nissan says no, but it would still like its stores to undergo an ambitious renovation program that would alter the majority for the better. Executives in Japan said the brand intends to update 9,000 of its dealerships around the globe over the next five years. Changes include more prominent signage, updated customer-handling procedures, and more open concept showrooms and service departments.

However, just how much pressure HQ is exerting on North American shops to adhere to the changes is unclear. In the United States, dealerships are already subject to the Nissan Retail Environment Design Initiative (NREDI 2.0), which encourages tons of daylight via glass-fronted showrooms and wide open spaces. The overall look is extremely modern and inviting without feeling showy. Think really nice community college, rather than the hotel lounge experience some premium auto brands attempt to provide.

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Canada's Worst(?) Used Car Salesman Heads Back to the Slammer, Leaves Misery and At Least One Broken Home in His Wake

We told you last year of the outrageous case of an Oshawa, Ontario used car salesman who bilked unwitting customers out of their hard-earned cash before being sentenced to a month in jail. Well, a second trial recently adjourned, and Ryen Maxwell of Countryside Motors now faces 180 days in the big house.

A repeat fraudster, this former salesman’s list of financial atrocities is a long one. In addition to causing fiscal hardship for numerous customers, Maxwell’s actions can be credited with causing, or at least contributing to, one woman becoming stranded in a rural snowbank and the breakup of another man’s marriage. Is it any wonder BHPH lots carry a stigma?

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Old Man Lutz Gives Dealerships 20 Years to Live, Doubles Down on Driving Dystopia

Longtime auto executive Bob Lutz has always been an incredibly outspoken individual. His years of hard work have given him an insight into the industry that few possess, and he’s only become more willing to share that information as he ages. Like the industrious caterpillar, his ceaseless labor has allowed him to metamorphose into what is arguably his perfect form near the end of his lifecycle — a candid automotive butterfly.

We love hearing anything has to say, as his insight borders on the surreal, but with more than enough truth to come to pass. Last year, he divined a future where the car as we know it is destroyed by governmental regulation and advanced technologies. The dystopian plot seemed impossible upon a cursory glance, but the deeper you drive, the more plausible it begins to seem.

Lutz refocused this week at the SAE International WCX World Congress Experience in Detroit, saying the traditional dealer model will be among the first things to go in the brave new world of mobility. He called car dealerships an “endangered species,” suggesting to the crowd that it had “another 20 to 25 years before it’s all over.”

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More Dealers, Lease Products Coming to Mitsubishi, but No Pickups Just Yet

Now part of an alliance with cash and platforms to toss around, Mitsubishi’s growing bolder in its quest to remind buyers that it’s not about to disappear from the American automotive landscape. Buyers, of course, are already helping the brand regain its footing. February’s U.S. sales were the highest since the heady and ominous year of 2007 (up 18.8 percent, year over year).

Through the end of February, U.S. sales are up 23.4 percent over the same period in 2017.

Having crawled out of the five-figure sales number nightmare that plagued the brand over the past decade, Mitsubishi dealers met in Las Vegas recently to discuss the near future. Some requests were granted, but a long-standing demand went unfulfilled.

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Mini Dealers Want to Know What the Hell Is Going on With the Brand

Sales of the Mini brand have been in a downward spiral since 2013 and U.S. dealerships want to know what expect in the future. Any prospects for the nameplate to grow into a volume brand appears to have been thrown out the window by BMW Group, and it’s now looking like it could shift into electrification.

Dealers, however, don’t know this for sure, and hope to gain clarity on the matter as the domestic market dives deeper into its appreciation for trucks, SUVs, and crossovers.

“I don’t think the dealers have a very clear vision of where the car line is going long term,” explained Jason Willis, member of the Mini National Dealer Council. “There is a lot of pride on being a small-car performance company, so my guess is we will continue to be a small-car company. But as far as electric and how we fit in, we’re still waiting to hear that plan.”

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Nissan Fixes a Problem: Salespeople Who Aren't So Hot at Moving Trucks

To think of the Nissan brand is to think of nameplates like “Sentra,” Rogue,” and, just maybe, “Pathfinder.” That’s traditionally as truck-like as a non-gearhead’s thoughts get after hearing the automaker’s name. As it continues to position itself as a serious truck maker and Detroit Three competitor, Nissan knows this needs to change.

While the little Frontier has graced our landscape for two decades, the process of purchasing one usually comes down to looking at the window sticker, asking if it comes in a cheaper version, then perusing a very basic list of features. Little different than buying (or selling) a car or crossover. That works for the simple Frontier, which sells great despite its advanced age, but it doesn’t work for would-be Titan buyers who stop in at a Nissan dealer after kicking the tires over at the Ford shop.

With this in mind, Nissan’s now moving its Titan-boosting efforts into the showroom.

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Dealerships Looking at Loaner Car Alternatives

You’ve just taken your vehicle to the dealership for servicing and find yourself in need of a loaner car. Fortunately, the vehicle is still under warranty and you should be able to get into something without too much trouble. This does not mean loaner vehicles aren’t a major stressor for the dealerships providing them, and it doesn’t guarantee you a car.

Small dealers likely won’t have a surplus of such vehicles and may attempt to bar you from access, especially if you didn’t originally purchase your automobile from that particular store. Luxury brands are more likely to fork over a loaner to keep customers happy. Of course, they want something representative of the brand, not some random hunk of junk sitting idle on the lot. Maintaining a loaner fleet is tedious and opens dealers to all manner of additional expenses they’d rather not have to deal with. It’s expensive and people tend to bring back the vehicles on their own time, not when the dealer needs it for someone else.

So what’s a high-end automaker to do when a customer needs a replacement vehicle while theirs is in the shop? Think laterally. It turns out there’s a multitude of loaner alternatives currently being vetted by dealers, some of which don’t involve providing a replacement vehicle at all.

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Ferrari Dealership Altered Odometers on Used Vehicles for Profit

News broke earlier this week of a Ferrari dealer embroiled in a lawsuit after a salesman accused the company of authorizing the use of devices that roll back vehicle odometers. Despite being a great way to improve the valuation of a used car, the practice is generally frowned upon — our best guess is because it’s super shady and totally illegal.

However, it was unclear if the issue revolved around one grubby dealership in Palm Beach or a systemic problem that included the manufacturer. The DEIS Diagnostics System that made the shenanigans possible does require online authorization from Ferrari corporate offices. But it could be that someone at home base didn’t know the extent of what the tool was actually being used for.

Unfortunately, they did. This week, details emerged from the case files of Robert “Bud” Root’s lawsuit against New Country Motor Cars. Back in April of 2017, Ferrari issued a memo to the dealership that can best be paraphrased as “cut it out.”

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Tax the Rich (Person's Car): Luxury Auto Dealers in One Canadian Province Aren't Happy About Their Customers Getting Soaked

After hitting it big with the Fab Four, George Harrison wrote the scathing song Taxman in protest of the British government’s “Super Tax” on high-income earners. At the time, the boys faced a 95 percent tax on their earnings (“There’s one for you, nineteen for me”), and Harrison reportedly did everything he could to offshore his wealth.

Britain’s dismal weather wasn’t the only reason rock musicians fled the country during this period.

In beautiful British Columbia, a mountain- and wine-filled area north of Seattle, the provincial government’s recent budget has some auto dealers steaming mad and worried their customers will hit the road in search of deal. The province’s New Democratic Party government, elected last year, plans to levy a 25 percent tax on the purchase of very high-end vehicles, with lesser models facing a 20-percent markup. However, many dealers wonder where the law of diminishing returns comes into play.

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