Dealership closings in your area...?

[Madman]

We lost a Ford dealer a few miles down the road last summer.  Here's a picture I took right after it happened.  Just a few days earlier, this place was full of cars.




Cheers,
Madman of the People

[JWC]

There wasn't crap going on at our dealership today.  The owner came out to service, walked around the empty shop, and then called the service manager into his office.

I was really hoping they were considering my idea of going part-time.

[ifcar]

I went to a local Mazda-Volkswagen dealer today to find it empty but for a base Routan and a couple of Passats. Their website didn't mention that they'd gone under when I checked it before heading out.

[JWC]

Well, you're around DC.  Everyone took the cars and headed to the Obama-fest.

I did take the time to pass my Sync 9-1-1 and VHR certification today.

[YO]

We had the big "bill heard" closings in Columbus and Metro Atlanta.  We laid off roughly 25 people at the dealership that I'm at now.

I'm sorry, but I posted over in C&D six years ago that this was coming...

Simple math... when each sub brand of the domestics have MORE dealerships then Honda, something doesn't add up.  I've been doing this now for 11 years. The in-efficient dealers are closing...as they should... the mediocre ones are on the brink and the good ones are just fine... sadly, imo the "good" is only about 35% of the dealers out there..

[JWC]

We had the big "bill heard" closings in Columbus and Metro Atlanta.  We laid off roughly 25 people at the dealership that I'm at now.

I'm sorry, but I posted over in C&D six years ago that this was coming...

Simple math... when each sub brand of the domestics have MORE dealerships then Honda, something doesn't add up.  I've been doing this now for 11 years. The in-efficient dealers are closing...as they should... the mediocre ones are on the brink and the good ones are just fine... sadly, imo the "good" is only about 35% of the dealers out there..

I see this as bigger than just an over-population of dealerships.  The inefficient and mediocre are the first to go, but unless some consumer confidence is returned to the market, even the good dealers will begin to fall.   

Ford has been proactive for years in trying to get rid of some of their dealers.  Chrysler instead, wanted Jeep dealers to be "stand alone".  Something that many dealers didn't see as realistic and resisted.  Benz wanted to tighten up its dealership count back in the 1990's. I liked Mercedes' ideas of satellite service centers in rural areas to support large city dealerships.

[YO]

I disagree... it's the Manufacturer who made this mess... not the dealer. GM has made "their" sale when their car hits the lot, not when it's sold. It's like the glut of starbucks out there.

I've worked for a few large dealer groups, and minus a few excetions, the ROI and profit of your Hondas and Toyotas of the world just slams the domestics. When you sit at a franchise meeting, EVERYONE hates the Honda GM.

There have been many recessions over the years and the car industry will be just fine... even BETTER, once 1/3 of the dealerships shut down. The glut of dealers has made competition impossible... the Honda store doesn't lose a deal to Toyota. It loses it to the Honda dealer on the other side of town... Imagine being a Domestic dealer with dozens of like competitors a short drive away.

This is just a correction to the market... which should have happened a decade ago...

[YO]

and the Benz statement is just not true... in the Atlanta market alone, they've added 2 new stores in the last 5 years for a total of 5. You don't think this effected the 3 original stores profits or sales?

I see this as bigger than just an over-population of dealerships.  The inefficient and mediocre are the first to go, but unless some consumer confidence is returned to the market, even the good dealers will begin to fall.  

Ford has been proactive for years in trying to get rid of some of their dealers.  Chrysler instead, wanted Jeep dealers to be "stand alone".  Something that many dealers didn't see as realistic and resisted.  Benz wanted to tighten up its dealership count back in the 1990's. I liked Mercedes' ideas of satellite service centers in rural areas to support large city dealerships.

[JWC]

and the Benz statement is just not true... in the Atlanta market alone, they've added 2 new stores in the last 5 years for a total of 5. You don't think this effected the 3 original stores profits or sales?

It isn't true now, but is was back in 1991..when I was with Benz.

I'm sure it has had an affect on the other dealerships.  The original plan as it was explained to me was to tighten up the dealership count...keeping large dealers in high population areas, but provide service centers for factory service in less populated areas.   It seemed that it would have been the best of both worlds.  I would have kept my Saab if there had been a service center closer than 90 miles.

[YO]

YOUR UNBELIEVABLE!!!







... you know... that was a song back in 1991...

It isn't true now, but is was back in 1991..when I was with Benz.

I'm sure it has had an affect on the other dealerships.  The original plan as it was explained to me was to tighten up the dealership count...keeping large dealers in high population areas, but provide service centers for factory service in less populated areas.   It seemed that it would have been the best of both worlds.  I would have kept my Saab if there had been a service center closer than 90 miles.

[JWC]

I disagree... it's the Manufacturer who made this mess... not the dealer. GM has made "their" sale when their car hits the lot, not when it's sold. It's like the glut of starbucks out there.

I've worked for a few large dealer groups, and minus a few excetions, the ROI and profit of your Hondas and Toyotas of the world just slams the domestics. When you sit at a franchise meeting, EVERYONE hates the Honda GM.

There have been many recessions over the years and the car industry will be just fine... even BETTER, once 1/3 of the dealerships shut down. The glut of dealers has made competition impossible... the Honda store doesn't lose a deal to Toyota. It loses it to the Honda dealer on the other side of town... Imagine being a Domestic dealer with dozens of like competitors a short drive away.

This is just a correction to the market... which should have happened a decade ago...

We still lose deals to other dealers, as far away as Raleigh.  People are not as opposed to travel as they once were to get a "deal".  It was the same when I worked for Honda back in the 1980s.  We'd talk to someone on Friday about a Civic Si and on Saturday, they'd go to Cary or Raleigh and buy it $200.00 cheaper.  That was at a time when it took almost two hours to get to Raleigh.

I agree that it isn't good business sense to put dealers too close.   The reality is though that people will travel to get a better deal. 

When I lived in the San Fran Bay Area, GM's rule was that same marque dealers were required to be nine miles apart...the rule was based on the population of the area.

[JWC]

YOUR UNBELIEVABLE!!!







... you know... that was a song back in 1991...

You lost me there.

[the Teuton]

MINI, at least here, seems to cover far Eastern Ohio, all of Western PA, and all of Northern WVa. all from the Pittsburgh dealership.  And the dealership gets a lot of business from out of staters.

[YO]

again... you weren't loosing sales to another brand.

When I worked for Acura in so cal in the late 90s early 2k, we had 13 dealers within an hour....

And we ALL made money. Supply didn't meet demand. And management was smart enough to understand this.

Poor management/ownership is what has killed the majority. Not cars... not UAWs... MANAGEMENT... from the CORPORATION on down...

[YO]

EASTERN OHIO?!?!?! Everything is DEAD there... Pittsburg will always stomp the little guys in St Clairsville, Cadiz, Smithfield, Adena, Stuebenville, Aurora, Columbiana, Folansbee etc etc etc.

why bother

MINI, at least here, seems to cover far Eastern Ohio, all of Western PA, and all of Northern WVa. all from the Pittsburgh dealership.  And the dealership gets a lot of business from out of staters.

[2o6]

EASTERN OHIO?!?!?! Everything is DEAD there... Pittsburg will always stomp the little guys in St Clairsville, Cadiz, Smithfield, Adena, Stuebenville, Aurora, Columbiana, Folansbee etc etc etc.

why bother

Yet again:


Who is this nerd?

[YO]

You post an Ipod rant??? Enough said...

Yet again:


Who is this nerd?

[2o6]

You post an Ipod rant??? Enough said...

Yet and still:


Who is this nerd?

[YO]

does he hold your head, or leave you in control?

Yet and still:


Who is this nerd?

[the Teuton]

EASTERN OHIO?!?!?! Everything is DEAD there... Pittsburg will always stomp the little guys in St Clairsville, Cadiz, Smithfield, Adena, Stuebenville, Aurora, Columbiana, Folansbee etc etc etc.

why bother

I'm not saying there's much business from East Ohio, but there is some.

[YO]

just kiddin... those are my "peeps"

I'm not saying there's much business from East Ohio, but there is some.

[JWC]

Poor management/ownership is what has killed the majority. Not cars... not UAWs... MANAGEMENT... from the CORPORATION on down...

I don't disagree....the downfall of many dealer owners is trying to over expand.  Too many dealers selling the same product and competing with each other for a limited market.   The gentleman who owned the last Honda franchise I worked with expanded to nine dealers all within an hour's drive of each other.   He now owns one.  He opened enough dealerships in the same area that they competed with each other and all lost money.  Honda still approved the stores though.

We're not really losing sales to another brand now.  Everyone in this area is losing sales, from Chevy to Toyota..and everyone in between.

[YO]

Greed... from the Greeks to the Bush's... it never works out...

I don't disagree....the downfall of many dealer owners is trying to over expand.  Too many dealers selling the same product and competing with each other for a limited market.   The gentleman who owned the last Honda franchise I worked with expanded to nine dealers all within an hour's drive of each other.   He now owns one.  He opened enough dealerships in the same area that they competed with each other and all lost money.  Honda still approved the stores though.

We're not really losing sales to another brand now.  Everyone in this area is losing sales, from Chevy to Toyota..and everyone in between.

[S204STi]

Hey 2o6, before you run your mouth too much Yo is actually a decent guy who knows quite a lot about the dealership business, so either contribute something or excuse yourself from the thread please.

[JWC]

Hey 2o6, before you run your mouth too much Yo is actually a decent guy who knows quite a lot about the dealership business, so either contribute something or excuse yourself from the thread please.

I didn't catch 2o6's comments until I read back through.  Of all the people to argue with, Yo isn't one...his knowledge of dealerships is vast.  I believe Yo has about the same number of years in dealerships as I and probably just as many brands.

[2o6]

His posts just seem trollish is all. Reading his other posts and he seems to be a decent person.

[JWC]

His posts just seem trollish is all. Reading his other posts and he seems to be a decent person.

Yo's been around for years.

[Cookie Monster]

His posts just seem trollish is all. Reading his other posts and he seems to be a decent person.

Everyone hates on YO for no reason...

If you had been on C/D since the good old days then you would've known that he's a cool guy.

[MrH]

You're working at a Mercedes dealer now Yo?

Down in Cincy still?

[the Teuton]

You're working at a Mercedes dealer now Yo?

Down in Cincy still?

He said he was in the ATL area now.