Dealerships Want to Get Trucked More Often in 2017

The cornerstone of every healthy relationship is frank and frequent communication. Last year, consumers wanted more sport utility vehicles, but automakers still had too many cars rolling off assembly lines. Caught in the crossfire were forlorn dealerships that were incapable of providing the trucks and crossovers that customers cannot seem to get enough of.

At the 2017 National Automobile Dealers Association Conference & Expo, this issue is apparently weighing so heavily on the minds of America’s automotive purveyors that it wouldn’t be surprising if gray matter began leaking out of their ears and onto the expo floor.

Making the rounds at the conference, Automotive News spoke to numerous dealership representatives and the song was largely the same: a demand for fewer sedans and larger profits.

“We had too many sedans and not enough SUVs — the X3 and X5. It is a matter of adjusting production and having the right amount of cars at the right time,” said Timothy Kraemer, general manager of BMW Minnetonka in Minnesota. BMW’s sedans have taken a particularly hard hit this year. The 3 Series saw its 142,232 U.S. sales in 2014 plummet to 70,458 only two years later. BMW’s 4 and 5 Series also hit a slump, while its SUVs managed better.

Volkswagen dealers had enough on their plate to worry about without having to cope with American automotive fads. Michael DiFeo, a dealer at Linden Volkswagen in Roselle, N.J., said that to remain profitable “we relied a lot on shifting our efforts to used cars.”

Now they’ll be shifting focus. “The Atlas is the first time that we’ll be in this large [crossover] segment,” DiFeo said. “Getting the larger Tiguan is huge for us considering the growth of that segment.”

Mike Bowsher, owner of Carl Black Automotive Group in Kennesaw, Ga., says Chevrolet dealers are worried about getting an appropriate ratio of cars to trucks on their lots as well. “I wouldn’t say we’re short,” Bowsher said. “But with Colorado crew-cab trucks and full-size utilities, we all want more. Dealers are always screaming for that. For SUVs, I’ll take every one we can get. Diesels, too — we just can’t get enough.”

“All dealers care really about two things. First and foremost is franchise value, and second is dealership profitability,” he explained. 2017 is “going to be the year of the crossover for us. We go in with solid momentum, and we’re going to continue to build on the market share gains, which would continue to give us strong franchise values and profitability.”

[Image: Faris/ Flickr ( CC BY 2.0)]