By on May 22, 2020

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.  (Read More…)

By on April 20, 2020

Updated social distancing guidance released by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) on Friday indicates the automotive industry is now an essential business.

Version 3.0 (for those keeping count) of what constitutes “essential critical infrastructure workers” added a number of job descriptions as the federal government mulls how to restart the U.S. economy. Among them is pretty much every job related to automotive manufacturing and sales. (Read More…)

By on March 30, 2020

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.  (Read More…)

By on March 23, 2020

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.  (Read More…)

By on March 20, 2020

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.  (Read More…)

By on March 12, 2020

Ford’s plan to rein in costs and grow profit (well, create it, to be more accurate) in the European market will see the automaker shed dealers en masse.

Figuring those who really want to test drive a vehicle will be willing to go the distance to do it, Ford’s dealer cull coincides with the release of an online sales platform. That platform rolls out alongside the first model offered through it: the electric Mustang Mach-E. (Read More…)

By on March 10, 2020

Colorado has been considering allowing automakers to sell electric vehicles directly to consumers, but pushback from dealerships complicated things. Senate Bill 167 was intended to level the playing field against Tesla, which already engaged in direct sales, by opening up the door for rival electric vehicle manufacturers to similarly bypass the dealership model.

However, dealer groups noticed the language in the bill effectively permitted any automaker producing EVs to engage in direct sales, Naturally, they cried foul. The bill had its final legislative hearing on Monday, and its new language identifies a difference between a legacy automaker with existing storefronts and EV firms without them.  (Read More…)

By on February 24, 2020

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. (Read More…)

By on February 21, 2020

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.  (Read More…)

By on February 18, 2020

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. (Read More…)

By on February 17, 2020

BMW had a decent 2019, besting historic rival Mercedes-Benz with 324,826 U.S. deliveries — a 4.4-percent improvement over the previous year. The brand expects more good news in 2020 as new product begins to hit its stride and more models start arriving. While the company currently enjoys an almost even sales breakdown between cars and crossovers, BMW National Dealer Forum Chairman Patrick Womack said its Westernmost offerings could be further refined.

U.S. dealers want a sumptuous German wagon to compete with European marques already providing one. (Read More…)

By on January 23, 2020

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. (Read More…)

By on January 22, 2020

A long-standing legal battle pitting Tesla against the state of Michigan has finally been resolved. It was announced Wednesday that the automaker’s 2016 suit against the state, which forbids the direct-sales model employed by Tesla, ended in a settlement a day earlier.

The result? A way for Michigan residents to own and conveniently service a Tesla in the notoriously protectionist state. (Read More…)

By on January 20, 2020

nissan

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. (Read More…)

By on December 18, 2019

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.” (Read More…)

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