#DealerNews

As we explained earlier this year, the fledgling Genesis brand is going through puberty. The brand’s constantly evolving dealer strategy is now set in stone, or what passes for it in the world of Genesis, but the process of separating the brand from its Hyundai parent won’t take place overnight. There’s dealers to whittle down, licenses to gain, standalone stores to build, and inventory to stock.

It’s a work in progress, but the 2019 models — which now total three — are beginning to find their way to more buyers, Genesis claims. Be patient.

High-end sports cars are much more likely to endure the onslaught of time that inevitably forces most automobiles into the junkyard. Why such vehicles might not all serve as pampered automotive “investments” for wealthy individuals, most are still well cared for and subject to fewer harsh winters and daily commutes than their mainstream counterparts.

Porsche claims that over 70 percent of all vehicles it has ever manufactured are still in operation today and the majority of those cars reside in the United States, not Europe. As a result, the automaker wants to expand its Porsche Classic operations in the region — helping owners keep their vintage machines in pristine condition while earning dealerships some side cash in the process.

We’ve told you already that the upcoming Ford Ranger, which hits dealer lots in January, stands to become an endlessly customizable midsize pickup. Reports of options galore cropped up well ahead of the truck’s release.

Now, there’s more news on that front. While the usual factory add-ons will be part of any would-be Ranger owner’s buying decision, Ford doesn’t want those customers to look at another catalogue or website once the vehicle’s sitting in their driveway. The automaker wants buyers to get all of their outdoorsy aftermarket fittings from the dealer.

Dealership advisory firm Presidio Group has painted a very bleak picture for its clients. With analysts predicting a downturn in auto sales, the company recommends dealers establish a robust 20-year plan that will enable them to perform in the new climate or get out of the business entirely.

Brodie Cobb, founder of Presidio Group, cites a glut of studies claiming dealerships will struggle as manufacturers shift into mobility companies and alternative modes of transportation are more broadly encouraged.

“We’re not particularly pleased that the world is changing the way it is. We would rather have it stay the same, because owning dealerships is a very nice return and profitable business that we enjoy very much,” Cobb told Automotive News in an interview. “So when we talk about this, it hurts us, too. We, too, need to understand the future, form a plan and not just put our head in the sand and hope it goes away.”

National Automobile Dealers Association chairman Wes Lutz doesn’t have much time for critics who claim traditional car dealers don’t want to sell you an electric vehicle. As EVs boast fewer moving parts and lower running costs, green car advocates often say dealerships view the vehicles as a threat to a business model that relies heavily on service visits for profit.

Not so, says Lutz. The parts that do move are the ones they profit from.

The plan may as well carry the heading “Operation Don’t Leave Us.” As Ford dealers meet in Las Vegas, the automaker has shifted its focus from luring buyers from other brands to keeping Ford owners in the family.

Helping firm up that relationship are a series of “Built Ford Proud” ads poised to hit the airwaves this weekend, with Breaking Bad star Bryan Cranston serving as the brand’s spokesman. For dealers, product assurances top the most-wanted list. Apparently, they got them.

Usually, talk of an extended warranty is waved off as a money-making scam by thrifty buyers in the final moments of a sale. And, usually, it’s the dealer offering the coverage. The buyer sees their total amount owing skyrocket on the finance manager’s computer and quickly signs for the agreed-upon amount, thankful to have escaped the building with his or her original payment calculations intact.

Uncertainty lies years down the road, but the thrill of new vehicle ownership muscles those fears to the back of the mind as the driver motors home, fingers crossed.

General Motors wants buyers to embrace that extra peace of mind, but it wants the coverage to come from the factory, not from a dealer extended warranty or service contract. On Monday, the automaker announced an extended factory warranty for vehicles spanning its four brands, and, right on cue, complaints arose from those tasked with selling the cars.

A major product shift and looming job cuts have some Ford dealers nervous about the future. Many would like to know what to expect under their showroom lights in the coming years, and this week brings an opportunity for the automaker to ease those worries.

Under Hackett’s leadership, communication often seems to take a backseat to vision, so the annual Ford dealer meet-up in Las Vegas brings with it high expectations of a great game of show and tell.

You may recall news from earlier this year of All Pro Nissan and its associated dealers, most of whom starred in Episode #4391 of the seemingly never-ending series titled “Dealers Behaving Badly.”

At the time, the entities – owned in part by a consortium of former NFL players – were being taken to task by the captive finance arms of Nissan and Hyundai over allegations that parts of the dealer group sold hundreds of vehicles, worth more than $10 million, out of trust and also failed to repay floorplan loans.

So what’s the punishment for these alleged misdeeds? Why, another brand new dealership, of course!

Hyundai has a problem to solve. Interest rates are on the rise, car buying is on the decline, and it has a newish luxury division forced to share showrooms with its regular models — most of which are moving out of the bargain bin.

However, rather than continue incentivizing the crap out of its vehicles, the automaker has decided to improve its dealership experience. There’s no official word on the amount of hugs Hyundai plans to dole out to prospective buyers, but the automaker does claim it wants to instill a warm fuzzy feeling in its clientele.*

The financial chicanery of a few automotive dealerships continues apace, with a group of Nissan and Hyundai stores finding themselves in several million dollars’ worth of hot water.

Reps for the captive finance arms of those two brands allege that five dealerships owned by auto retail veteran Michael Saporito and former NFL linebackers Jessie Armstead and Antonio Pierce sold nearly $10.5 million worth of vehicles out of trust. Nearly a hundred machines are allegedly missing, as well.

If you noticed your neighbor adding a glistening new Genesis model (the midsized one or the bigger one) to their driveway in the past month, you’re a member of a very small group.

Genesis, the luxury marque born of Hyundai, didn’t sell many vehicles in August, but that’s all part of the plan. The brand’s executive director claims there’s less than a month’s worth of vehicles currently in the U.S., but once those ships arrive, look out. Actually, a better way of phrasing that is: “prepare yourself for things to occur in a gradual and measured fashion.”

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?

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.

The product pipeline is already in place, but what about the dealerships? That’s where Lincoln Motor Company’s focus now lies, as it begins rolling out a plan that will see standalone Lincoln dealerships pop up in 30 high-volume markets.

As the premium brand attempts to shuffle off sliding sales with a utility vehicle onslaught, the brand wants those high-rising vehicles shown off on well-lit runways encased in glass cubes. Lincoln calls this design “Vitrine.” It’s not just important to the brand — it’s “critical.”