GM to Dealers: Fight Ferrari (and Porsche, Audi, & Macca)


We all know GM takes the C8 Corvette Z06 very seriously; putting that particular engine amidships surely took an act of divinity and Alfred P. Sloan himself. But a recent inside look at dealer training materials provided to sales hacks shows just how seriously they're taking the thing - pitting it against a $300,000 Ferrari.

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Dealers Behaving Badly: FTC Seeks to Crack Down on F&I

We would wager our combined annual salaries – a sum roughly equal to the value of a half dozen donuts from Krispy Kreme – that every single soul reading this website has a story or three about being blitzed with products in a dealer’s F&I office. Vehicle etching, useless warranties (sorry – this paper only covers mechanical fuel pumps), and p-packs up the wazoo are the bane of most shoppers’ existence when trying to buy a car.

Make no wonder some people call it the “Effin’ Eye” office.

This environment may change if the Federal Trade Commission gets its way. According to a report by Automotive News, a new proposal by the FTC would ban finance/insurance coverage and physical vehicle add-ons “that provide no benefit” while also requiring expanded disclosure on such items.

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Study Claims Gen Z Doesn't Like Buying Cars

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.

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Opinion: Why Dealers Have Earned Massive Markups

Earlier this week, someone sent me an addendum sticker from Mercedes-Benz of Selma, in Texas. The addendum added two line items to the sticker price. The first line item was VIN etching, at $199. That’s controversial enough, since some people have said that VIN etching is the scam of the decade – but those people haven’t seen the second item: A “Market Adjustment” charge for $125,000.

You read that right. One-hundred and twenty-five thousand U.S. American dollars – and that’s on top of the Mercedes-Benz G63 AMG’s already steep $178,000 asking price. But, frankly, it’s not the 70 percent markup that’s the most offensive thing here, It’s not even the $199 charge for the VIN etching.

Frankly, the worst part of this is that MB of Selma will very likely get their markup. And, when they do, they will deserve every single penny.

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National Automobile Dealers Association Elects New Chairs

The National Automobile Dealers Association (NADA) has elected Mike Alford as its chairman for 2022. The decision was announced shortly after the group’s board adjourned on Tuesday.

Alford — who heads Marine Chevrolet Cadillac in Jacksonville, North Carolina — currently serves as NADA vice chairman and will be taking over for Paul Walser next year. Geoffrey Pohanka was chosen as the vice-chair, setting him up as a strong contender for the top position in 2023.

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Report: Ford to Build Standalone Bronco Stores

If you have Bronco on the brain, you may find yourself buying one from a store that stands separate from your local Ford dealer.

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Illinois Auto Dealers Sue State Over Rivian's Direct-Sales Model [UPDATED]

Rivian’s plan to sell vehicles directly to consumers has raised the ire of two auto-dealer groups in Illinois.

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Tales From the Service Desk: The Buick That Had a Secret

Hi there! You’ve probably learned a bit about your author during my time at TTAC, but you might not know I toiled in the service department of various car dealerships early in my career.

I started as a porter in high school, then eventually worked as a greeter in the service bay (basically, managing the flow of cars and customers in the service drive), before finally working as a service writer (aka service advisor). I did that final job both in an express-service lane at a dealer (think oil changes and basic maintenance) as well as in a capacity as a “regular” advisor (not just oil changes, but all types of repair).

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'It's Still a Pig': Colorado Dealers Association Cold on Direct Sales Model, But Rivian Sees Promise There and Beyond

With production of its R1T pickup scheduled to commence later this year, upstart EV maker Rivian is aiming to get its products into as many states as possible, even if it means challenging dealer franchise laws. Following the R1T’s debut, the R1S three-row SUV will arrive to bolster Rivian’s emissions-free game.

In Colorado, where a bill seeking to allow direct sales via OEM-owned stores cleared a Senate committee last week, Rivian hopes to secure a victory — then replicate it in other protectionist states.

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Prepare for EVs, Cadillac Tells Dealers Ahead of Crossover Debut

A Cadillac crossover that heralds a slew of other electric models will make its public debut in April, Cadillac executives told dealers on Monday. The meet-up, reported by Automotive News, comes as General Motors readies a surge of EVs over the next few years. Cadillac will play a major role in that product transition.

Per that same meeting, Cadillac’s dealer council has created a subcommittee made up of dealers and brand execs to help smooth the entry of gas-free product.

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Piston Slap: Will EVs Bankrupt Mechanics, Dealerships?

Marc writes:

Hi. Long-time reader, and have had a past question answered. With all the hype surrounding electrification, there is one aspect I see little discussion about — the impact on the service and parts business. If the majority of profits at a dealership comes from service and parts, what is the impact of no oil changes, etc, and the myriad of ICE parts that electric vehicles don’t have? Jiffy Lube, Aamco, Midas, all done.

The economic implications are huge. Your thoughts?

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Dealers Blast Nissan CEO, Deliver 'an Hour and a Half of Reality'

Japanese executives traditionally take company failings very personally, often performing penance in the wake of scandals and downturns. In the case of fresh-on-the-job Nissan CEO Makoto Uchida, his punishment for the automaker’s dismal financial situation and tumbling sales was an earful from a group of angry U.S. dealers.

The dealers let Uchida have it during a recent meeting at Nissan’s U.S. headquarters — the first such meeting since Uchida’s elevation to CEO late last year. It’s not like he didn’t ask for it.

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Roger Penske Puts Spotlight on Tepid EV Sales, Singles Out Audi E-Tron

Roger Penske, the business magnate whose Penske Automotive Group operates more than 150 dealers across the U.S., isn’t very excited about electric vehicles, as he’s seen how easily they sell.

Which is to say, he’s seen how difficult it can be to unload an EV.

While Tesla chooses to go its own way in the retailing space, established OEMs with a strong dealer presence must consider other financial realities in deciding how they offer a new EV. Unlike Tesla, these new EVs often look like the ICE-powered vehicles they share a stable with. However, their price might not have much in common with similar-sized vehicles sitting just across the showroom or lot.

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Fiat Chrysler Dealers Cry Foul Over Inventory Glut

Certain Fiat Chrysler dealers aren’t happy with the inventory buildup that took place over the summer, claiming the automaker is headed back to the bad old days with the creation of a sales bank.

FCA, which just sealed a merger agreement with France’s Groupe PSA, claims its inventory is under control, touting a significant reduction in unsold vehicles during the third quarter.

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Ask Bark: Bitten by a Bark's Bite

One of the great joys I’ve had over the last six years of writing for this site has been offering my advice (for what it’s worth) to the loyal readers of TTAC, the Best & Brightest. Nearly every person whose question I’ve answered has written to tell me that they appreciated what I’ve written in response to their advice, even if he or she didn’t follow it exactly. But today, I got an email from somebody who ended up feeling the sting from my words. Let’s hear from our friend Quincy and see if we can help him.Hi Mark,I was recently reading your article about the deals that could be had on left over inventory and I felt inspired to test the waters. My local Buick dealer in Metro Detroit had a 2018 Regal TourX Preferred in silver with a MSRP of $36k and I was happy to take it home for $23.5k before TTL. However, the honeymoon came to a screeching halt as I was introduced to the concept of lot rot. Back to the dealer for new brakes. To make a long story short, the driver’s front wheel came off during the technician’s new brake road test and moved in a generally northeast pattern towards the A-pillar. With only 444 miles, my car sits in the dealer’s back lot with a driver’s door impinged by a front fender. The only offer from the owner of the dealership is to let them repair the car in-house or they won’t cover the costs of the repairs. Do I really want the dealership that damaged the car to fix it? With no parts is sight (GM strike) and a damaged vehicle history, I’m finding the dealer’s offer leaves me less than satisfied. So what would you do in my shoes?Thanks,QuincyUgh. That sucks.

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  • MaintenanceCosts Seems pretty obvious that they're leaving room for a SRT with the 2.0T and the electric motor. The R/T will probably be slower than the GT given the extra weight, but without the 9-speed it will be a much nicer drive.
  • Art Vandelay Lawyers would Eff it up. That and the NIMBYS. I agree with you, but it ain't gonna happen
  • EBFlex They are getting rid of the Charger and Challenger for a modern day Neon?just end it Dodge, you had a great run
  • Garrett Frankly, I don’t understand why some of the manufacturers haven’t lobbied for more areas, or built their own. Imagine being able to access a local Jeep park, at a reasonable membership fee. Or a Land Rover one for a lot more. That’s money worth throwing down.
  • Lou_BC Developing "off-road parks" in areas with higher populations and a lack of public access land would be a good idea. It would be great to be paired with licensed off-road instructors. Set up costs would be relatively low. I took an entry level off-road course a few years ago with my son's Cherokee. It was fun. I'd like to take a winching course and an advanced driving course.