By on August 28, 2018

2018 Chevrolet Silverado Centennial Edition

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?

(Read More…)

By on August 23, 2018

https://www.flickr.com/photos/autohistorian/25516489743/

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.  (Read More…)

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