#AutoDealers

Younger drivers have reportedly had it with the dealership experience, with Gen Z even more disenfranchised than Millennials. Though it’s difficult to imagine anybody visiting a showroom within the last 12 months having any other reaction. Incentives are down, prices are up, and there’s a good chance whatever you wanted to buy isn’t going to be on the lot anyway. Someone saying they had an exemplary dealer experience is becoming about as common as people claiming they enjoy going to the DMV.

However, CDK Global Inc. still opted to conduct a survey in the hopes of determining just how much less tolerant younger shoppers might be compared to older generations. The takeaway probably isn’t going to shock you, even if the sheer volume of first-time buyers that don’t care for dealerships might.

With the house of Stellantis constantly exploring the upper echelons of what customers will pay for a rig with a Jeep badge on its nose, it seems that placing six-figure Grand Wagoneer L models next to entry-level Ram work trucks has become passé. If some corner-office dwellers have their way, Jeeps – or at least the snazzy ones – could earn a place in their own showroom.

No one reading this will assert the current environment is anything but a seller’s market. Numerous vehicles are being hawked for many thousands (in some cases, tens of thousands) over sticker and a vast amount of machines are pre-sold before they arrive at dealerships on the back of a hauler. And all that assumes there are any rigs to be had at all.

One customer north of the border is alleging they have been denied the opportunity to buy a vehicle unless they also agreed to take roughly $3,000 worth of warranties and rustproofing. The dealer, of course, denies it all.

Michigan auto dealers will be allowed to resume in-person sales on Tuesday, according to the latest in a long list of executive orders signed by Gov. Gretchen Whitmer. The state, which harbors the fourth-highest coronavirus death toll in the country (following New York, New Jersey, and Massachusetts), has enacted some of the strictest countermeasures in the country.

This has created no shortage of pressure to both reopen Michigan so life/business can return to normal and maintain closures to avoid further contagion risks. Obviously, that’s proven difficult to do. All steps taken towards reopening come with conditions, including those established for Michigan’s dealerships.

But first, some backstory.

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.

The State of Colorado will be the next territory in the United States to join California in embracing electric vehicles. Democratic Governor Jared Polis has signed an executive order (his very first) proposing that the zero-emission vehicle rule be enacted no later than May of 2019. The rule would require automakers to sell more electric cars within the state each year until it reaches utopian status.

However, that could still be decades away. Thus far, Polis has only asked the state’s Department of Public Health and Environment to propose new rules to the Air Quality Control Commission over the coming months. As of now, there are no official rules stipulating how many EVs need to be sold every year. And California, which started is ZEV program years ago, estimates electric vehicles will account for between 8 and 9 percent of all new car sales within the state by 2025.

While sales numbers are a decent metric for assessing volume, they don’t give an accurate representation of what’s actually happening at the dealership. Instead, the figure represents the number of models an automaker was able to move from the factory. Theoretically, a manufacturer could load up a bunch of trucks at the end of the month and count them as “sold” to bolster volume — whether or not real people actually bought them.

Dealer throughput is better for assessing the current consumer climate. But we’re sure you won’t be surprised to hear that it’s cold and only expected to get colder. U.S. dealership throughput, the average number of new-vehicle sales per dealership, is expected to slip 2.9 percent this year. That equates to a mean of 920 vehicles in 2018, down from 947 in 2017.