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■ NADA, association leaders respond to Scout’s direct sales strategy: A call to action for dealers! ■ “Buying a car is not like buying a tube of toothpaste on Amazon. You don’t trade in your toothpaste; you don’t finance your toothpaste. There are a lot of different aspects to this, and it’s... the franchise system is best positioned to take care of this, and that’s been proven time and time again.” — Mike Stanton. By Jaelyn Campbell, CBT News ■ In a critical discussion on Inside Automotive, Mike Stanton, CEO and President of NADA, and John Devlin, President of the Pennsylvania Automotive Association and the Automotive Trade Association Executives’ 2024 Chairman, address the implications of Volkswagen’s Scout Motors deciding to sell vehicles directly to consumers. This controversial move raises significant concerns for existing dealerships and the franchise model, prompting NADA and state associations to prepare for a robust response. ■ During the interview, Stanton emphasized that NADA is working closely with state and metro dealer associations to counter Volkswagen’s decision, which they view as a betrayal of the longstanding dealer-manufacturer relationship. He highlighted the importance of maintaining this partnership, stating, “There are over 600 VW dealers in this country… over 50,000 people in this country work for Audi, VW, and Porsche dealers.” This emphasizes the consequential economic impact these dealerships have on local communities and the automotive ecosystem as a whole. ■ Meanwhile, Devlin notes Volkswagen’s disappointing lack of communication, suggesting that their silence has led to this anticipated but disheartening decision. He pointed out that Volkswagen’s direct sales approach might hinder its existing U.S. dealer network, stating, “Trust is important in any relationship,” and indicated that the current environment threatens to shatter this trust.  ■ Both leaders expressed concerns that this move could damage the consumer experience, as many direct sellers have struggled with service levels. Nevertheless, these industry leaders also touched on the potential challenges Volkswagen might face in terms of regulatory compliance across various states. Devlin pointed out that “they can’t get licensed in most of the states, if not all the states around us,” stressing the complexity of navigating the franchise laws that protect dealerships. Source: https://lnkd.in/gbQyT8SV #ScoutMotors #Dealers #dealership #Cardealer #Nada

Highlights from our year-end 2023 Franchise Activity Report (FAR) are LIVE on our Insight Lab! Check out the industry's most reliable source of dealership statistics to learn about what happened across the U.S. automotive retail network last year. #automotive #automotivenews #automotivedata #study #dealerships #dealernetwork

NEW: Our 2024 midyear Franchise Activity Report (FAR) is here! Click below for a midyear status report on the U.S. automotive retail network during the first half of the year, including dealership and franchise counts, a dealership throughput update and more.  #AutomotiveNetwork #Dealerships #AutomotiveData #NetworkPlanning 

USA, New England ■Carlsons Motor Sales is now part of DCD Automotive Holdings Nucar■ March 1, 2024, ARI_sk, Source: Concord Moitor ■Nucar is a part of DCD Automotive Holdings, founded in 2014 by Dan Dagesse, who started Berlin City Auto Group in Berlin, N.H. which was founded in 2014 by Dan Dagesse and his son, Christopher, who bought auto dealerships in Massachusetts even before the COVID shortages and price spikes threw the industry into turmoil. They prodded many independent dealers to sell out. Corporate Office is located in Norwood, MA, and dealerships are located in Delaware, Massachusetts, and New Hampshire; Now, they have 25 operations throughout New England plus one in Delaware, most under the Nucar name. That includes the former AutoServ group of dealerships in Tilton, which they bought in 2020.  Many of the Nucar operations are part of a branded franchise, but Concord’s will be a used-car “superstore,” Hanlon said. Nucar has long wanted to be in the Capital City. Carlson’s Motors, a family firm that in 1937 became one of the first car dealerships in Concord, has been bought by Nucar, a regional company with deep roots in New Hampshire, as part of a continuing trend of consolidation in the industry of auto sales and service. “Our role is to take the exceptional job the Carlsons did with their service business – they focused hard on mechanical service – and bring our sales footprint into it. They weren’t focused heavily on sales,” said Shawn Hanlon, president of the New Hampshire and Vermont operations for Nucar. “One of the biggest attractions was their loyal customer base. They have a very robust parts and service business, and people have been doing business there for a long time.” Source: Concord Moitor #automotive #retail #dealership

Have you ever wondered what your dealership(s) might be worth in today’s market? Here's a story that might inspire you to take the next step. Shawn and David Ball, owners of Advantage Toyota and Ball Toyota, built their dealerships into two of the highest-performing Toyota stores in West Virginia. Their hard work and vision paid off when they recently sold to Victory Automotive Group, one of the nation’s top dealership groups. This deal was more than just a transaction—it was the culmination of years of dedication and a testament to the American Dream in auto retail. When Shawn and David decided to sell, they trusted Haig Partners to maximize the value of their dealerships. Our expertise in the Toyota dealer community ensured their legacy would continue with the right buyer. Here’s why this matters to you: ->Toyota dealerships remain one of the most sought-after brands in the country. -> Blue sky values for Toyota stores are holding strong, with buyers eager to acquire these high-performing franchises. -> We’ve advised on the sale of 39 Toyota dealerships nationwide—helping dealers achieve exceptional outcomes. Whether you’re thinking about your next chapter, exploring growth opportunities, or just curious about the current market, let's have a conversation. Interested in learning more about this landmark sale or discussing your dealership’s value? Let’s talk. 📞 Contact Alan Haig at [email protected] or (954) 646-8921 for a confidential conversation.📞 Because your life’s work deserves nothing less than exceptional. Read the full story here: https://bit.ly/3CWJHjN #ToyotaDealerships #AutoDealers #HaigPartners #DealershipSuccess #AutoRetail #BuySellAdvisor

New car distribution is control by franchise dealerships, here's why EVs are not their favorite car the sell.

Thank you, Cox Automotive Inc., for including data from the Q4 2023 Haig Report®, highlighting the blue sky multiples for the Toyota North America and Lexus brands. "The extent to which these two brands drive profit is staggering. According to Cox Automotive Inc.'s analysis, Toyota and Lexus dealers captured 29% of the industry’s total new car gross margin in February, despite their combined dealer network representing only 9% of the nation’s dealerships. This math helps explain why the average Lexus dealer blue sky valuation from Haig Partners is 8-10x earnings, and Toyota is 7-8x earnings, both best in class for luxury and non-luxury franchises." https://lnkd.in/e6Priy5F #dealershipbluesky #bluesky #HaigReport #Toyota #Lexus #dealershipbuysell

As dozens of executives who clashed with GM CEO Mary Barra well know, it’s her way or the highway. Half of the company’s Buick dealers opted for the highway -- in their gas engine vehicles no less.   Given the choice to invest in training, tools, and special equipment for the EV transition or get paid to fold their businesses, 50% of Buick’s franchise dealers opted to take the money. Buick doesn’t yet offer any EVs -- a good thing since it likely couldn't sell them. It's not clear how many jobs will be lost. Car dealerships are major local advertisers and support community initiatives.   The buybacks have so far cost GM some $1 billion. Notably, Buick offers higher MPG for its base trim vehicles than Cadillac in 4 out of 5 comparisons.   "What this is enabling us to do that is triple the throughput of the remaining dealers," Duncan Aldred, global head of GM's Buick and GMC brands, told CNBC. "I think it's fair to say that I'm really pleased that we achieved it."   GMC trucks, among GM’s most profitable vehicles, are typically sold at Buick dealerships, which are critical these days to buyers of the 2024 Sierra pickup. GM has already issued four service bulletins on the vehicle for various issues including roofs that are splitting apart, an unusual “shudder and shake” issue that happens at light throttle or steady speed, tailgates randomly opening, and possibly incorrect values printed on the trailering label, potentially providing owners with misleading information about maximum hauling capacity.   GM’s 2024 Chevy Silverado reportedly has the same issues as the Sierra.   A judge earlier this year certified a lawsuit involving 39 plaintiffs across 26 states that alleges GM for years knowingly sold cars and trucks with faulty transmissions.   “General Motors knowingly sold over 800,000 eight-speed transmission vehicles, which they knew to be defective for years, and yet made the business decision not to tell its customers before purchase," said Ted Leopold, lead counsel for the class action suit, told the Detroit Free Press. "Dealers were directed to tell the customers that harsh shifts were ‘normal' or ‘characteristic.’ Such decision making is both highly irresponsible and emblematic of what GM believes it can get away with."   Barra, who received $29 million in compensation last year, has gotten away with a lot more than allegedly knowingly selling faulty transmissions. Her EV transition has been a disaster and GM’s autonomous Cruise taxi business continued operating despite internal concerns its vehicles weren’t safe. Cruise has paused its operations and fired 25% of its staff, just after Barra told employees she was committed to them and the business. Buick dealers who opted for buyouts to their cue from Barra, who recently authorized a $10 billion share buyback to boost GM's depressed stock, a signal that she can't provide investors with material returns with her EV strategy.   https://lnkd.in/gFKuSw_i   #gm #gmc #ceo #electricvehicles

Lithia Motors is expanding its presence in the Southern states with a significant acquisition in Memphis. The company has purchased Sunrise Wolfchase Buick GMC and Sunrise Buick GMC Collierville from Sunrise Auto Group. These top-performing dealerships will continue their legacy under Lithia's ownership, promising further growth in the high-demand Tennessee market. Discover more about this strategic move and its impact on the automotive landscape. #LithiaMotors #BusinessGrowth #AutobodyNews

Underperforming Car Dealerships, they are underperforming for several reasons and it starts at the top! - You must have a competent Head of Business - People & Process must be reviewed - Must have Right People Right Jobs - Read through and understand Policies & Procedures - Are the Managers following these processes and how competent are they? - Is the dealership aligned with the OEM? - Review previous audits, why has the same Manager(s) failed audits? - Do the Manager(s) blame the team’s incompetence and lack of personnel / number of vacant positions for underperformance? - Do you have the right Manager(s) in this instance? - How consistent are appraisals and does the content serve purpose or is it just tick box? - Do support functions such as Compliance, Sales & Aftersales Development, Health&Safety, involve the Head of Business? - If not, is the Head of Business making it their business to be involved because they should - Is the Franchise Director stepping in to support the Head of Business when performance improvement becomes challenging - It is likely that a departments performance can slip when changes at the helm of the department are occurring - Is there a clear succession plan in place with releavant training plans in progress and or completed Just a few simple points to address when a site is underperforming Statistical Analsysis helps but many different assumptions can be made when reviewing stats - you have to deep dive in to the peolple, process, policy & procedures In my opinion, when are dealership is underperforming there must be a clear plan produced by the Head of Business and overseen by the CEO, MD, FD, Human Resources and other support functions in order to turn it. By doing this, everyone is on the same page, truth in the room conversations can happen and everyone in the room can agree to next step actions ready to be reviewed the following month - Are those personnel too busy to participate in such meetings? - For me, it needs to happen together in one room or remote call in order to focus and utilise everyone’s experience to make things happen *Basics* There is certainly a disconnect in some businesses between the Head of Business, Franchise Director, Managing Director and CEO. Messages are passed from the HoB to the FD to the MD to the CEO, it’s not good enough There can also be incompetent people in Senior positions that are unable to help an underperforming site because they don’t know how and this can be frustrating for a HoB and result in the wrong people being moved on Food for thought!