The latest from Detroit has General Motors considering tweaking its delivery strategy for electric vehicles. While this appears to tangentially fall into the industry trend of trying to shove EVs into an online sales model, GM’s plan is distinctive and would introduce centralized inventory lots for the 2022 Chevrolet Bolt (hatchback and EUV) before Christmas. But we can already see the dual-sized nature of the plan that will be used to promote and condemn it, should things move forward.

General Motors could be seen as throwing dealerships a bone by finding a way for those located in areas where EV buyers are less prevalent to provide their customers with electrified options. This saves them from having to prep their lots for charging and making space for vehicles people might not bother buying until the technology has further matured. However, with industry giants (including GM) vowing to continue making more of their lineup battery-powered, dealers might also view this as a coy way for the manufacturer to obtain more control over retail operations. Other manufacturers have already explained that they want to prioritize online sales of electric automobiles, with the end result likely mimicking the Tesla sales model … something that doesn’t include traditional dealerships.  (Read More…)

It was a bright summer day when our regular customer, a woman in her 30s or 40s who had a haircut that we’d now deem a “Karen”, was leaving the dealer with her brood after a routine service, probably an oil change and tire rotation.

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With large hunks of the nation still under varying degrees of pandemic-related restrictions and accompanying panic, auto dealerships haven’t been awash with customers. Many that did reopen have been forced to follow distancing guidelines, frequently limiting the number of people allowed on the premises. Hoping to avoid closing permanently and relinquishing ownership to the bank, they’ve come up with some interesting solutions to keep their clientele interested.

Virtual test drives aren’t exactly new, but they have become an increasingly popular avenue for dealerships hoping to drum up business in 2020. While we’ve seen salespeople giving tours of new product as they hit the lot for years, on-board video is typically reserved for independent review purposes. That’s largely because nobody really expects a fair assessment from the person selling the vehicle. However, with in-person test drives becoming quite difficult, showrooms want to exercise every option they have to draw in customers. (Read More…)

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…)

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…)

When it comes to buying new cars, I don’t have much patience. When I bought my Focus RS in 2016, I spent less than an hour doing the whole deal, including actually deciding what car I wanted to buy. Got a blank check approval from my bank, spitballed some ideas with my older brother and my good friend Bozi, and then put down a deposit on a car at a dealership about a thousand miles away. But there was one time when I tried to have patience, and was sorely disappointed.

Eleven years ago, I put down a $5,000 deposit and placed an order for a BMW 135i with my local BMW dealer. It was the launch year for the ill-fated 1 Series in the states, and I wanted to have one of the very first Ones to hit our shores. I ordered a very stripped down version — black, stick shift, cloth seats, no roof. After about 12 weeks, the dealer called to let me know that my car had arrived. Well, a car had arrived… but certainly not mine.

This example was an automatic. But that wasn’t the only thing they got wrong. They added somewhere in the neighborhood of $5k to the sticker, including nearly every option, even a red leather interior. Imagine my disappointment and frustration with the dealer, who had recycled sales people a couple of times since my order and couldn’t seem to track down anything about it, not even the original order sheet.

I asked for my money back, which they reluctantly gave me, and I ended up buying a Pontiac G8 GT instead — not a bad trade. But not everybody who goes through the ordering process is so fortunate. Click the jump for a question from our friend Andy about his experience in ordering his own custom German whip.

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TTAC Commentator arach writes:

Sajeev,

I need some car buying advice, and I’m not like one of those lame buyers who ask if they should buy a Honda or a Toyota, so you should definitely give me your 30 seconds of direction. (Fine, maybe this isn’t pointless. – SM)   (Read More…)

“We have been working more closely with our dealers to evolve their businesses and through that process,” Mazda tells Automotive News, “some new dealers have chosen to begin working with us, while others have made the decision to leave the Mazda brand.”

Mazda has been open about its goal of earning 2 percent of the U.S. market while being forthright about the brand’s intentions to do so only on solid ground. This means fewer discounts, a premium vibe, and the kind of higher margins that make dealers happy.

On the dealer side of the equation, Mazda now wants those dealers to improve. In some cases, that means a new location. In others, a new exterior design is necessary. More thoroughly trained staff members is key, as well. But it’ll be slow going. Of Mazda’s roughly 600 dealers, the brand acknowledges that some have forsaken the automaker, though Mazda won’t say how many. Since the efforts to revamp dealers began last year, only 26 have been upgraded so far. By the end of the decade, Mazda believes roughly one-sixth of its network will have undergone a remodel.

In the meantime, Mazda is getting further away from reaching its 2-percent goal. (Read More…)

In February, a Texas Toyota dealership and The Genesis Center of Kaufman County joined forces to raffle off a fully restored 1994 Toyota Supra Twin Turbo. Donated by a local resident battling cancer, the entirety of the proceeds from the draw were designated specifically to help fund the center. Genesis is a faith-based shelter which also provides job placement, parenting classes, financial management programs, spiritual counselling, material needs, and medical referrals to women and children in crisis. It is funded largely through the church or via direct donations.

All in all, the dealership managed to raise more than $50,000 for the center. However, when Rebecca Rawl was announced as the winner of the raffle in April, many stated that the name was suspiciously close to that of the wife of sales manager Danny Rawls. Toyota of Rockwall was quick to rectify its mistake, specifying that the name given had been a mistake and “Rebecca Rawls” had in fact been the lottery winner.

As you can imagine, this did not go over well.

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It’s the latest in a string of similar nighttime thefts, but it’s not surprising — after all, when four hours’ work can net you hundreds of thousands of bucks, who expects thieves to stop?

This past weekend, the inventory of a General Motors dealer lot in Tyler, Texas was left up on blocks after thieves stripped 48 vehicles of their wheels, Automotive News reports. (Read More…)

Nigel writes:

I own a 2011 Subaru Outback that just reached 107,000 miles. The past four bills I’ve received for it have cost anywhere from $300-580 a pop (two were for maintenance, plus the timing belt and new brakes up front).

Should I get used to high bills for it, or am I just getting ripped off by the dealership?

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After an investigation by the National Highway Traffic Safety Administration, an Arizona dealership promised it won’t sell recalled vehicles sans repair.

Sands Chevrolet LLC of Phoenix agreed to pay a $40,000 civil penalty and will shore up its sales procedure in the wake of the probe. The dealer will now check all vehicles for outstanding recalls before delivery and whenever a vehicle is brought in for repair. (Read More…)

Fiat’s American retailers are struggling to bring in buyers as well as pay the cost of their dealerships, but help is on the way from the parents.

On March 9, Fiat Chrysler Automobiles pitched a plan to stabilize dealers, offering Fiat stores the opportunity to combine their operations with the Chrysler-Jeep-Dodge-Ram dealers many are adjacent to, Automotive News reports.

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Casey writes:

Hello Sajeev,

I have another question for you. My wife has wanted a Camaro and lately I have been thinking about surprising her with one for her birthday or maybe Christmas, so I have been searching the listings for a nice used example.

First thing I noticed is these cars sure seem to hold their value!

I found a Craigslist ad for a very nice looking, well optioned, 2011 Chevrolet Camaro 2LT with the RS package. “ALL scheduled service and maintenance has been performed by Chevrolet certified technicians,” the ad says and the price seems reasonable.

Then I see the kicker: the mileage is high for the year at 117,800. I know that a documented maintenance history is more important than mileage, so I wonder what impact higher mileage would have on a car like this? What problems could I run into sooner by buying a well maintained, high-mileage car?

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Twenty-two vehicles on the front line and not a single one of them a Volkswagen.

This wouldn’t be surprising if this were a used car lot or a new car store that sold a different brand, but this is Jim Ellis VW — the most successful Volkswagen dealership in the entire metro-Atlanta area.

How successful? They have two locations and sold Volkswagens every day for well over 44 years. This dealership was founded on day one with Volkswagens exclusively in their blood. No competitor in the southeast can come close to that level of enduring success.

So what does it mean when one of your most loyal dealers in the entire nation won’t even put your vehicles on their front line?

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