9/30/19 by Ryan Gerardi |Read Original Post
In a recent article on Auto News, contributing author Alan Brown states that over the past decade, dealerships have done everything the manufacturers have asked: multimillion-dollar facility upgrades, more inventory and increased square footage. With the proliferation of the electric-vehicle and ride-share economies, what are automakers doing to return the favor, now that dealerships are oversized and underperforming?
Brown’s statement: ‘Not enough.’
Do you agree?
Throughout the article, Brown builds his case, and he makes some valid points.
For just the third time in a decade, the U.S. auto industry entered the summer selling season without a monthly sales gain. This is the first sign of an industry in flux — even as the economy continues to soar.
With a dealership-footprint crisis at our doorstep, manufacturers should be working in lockstep with their dealer advisory councils to right-size dealerships now — not 10 years from now.
Because every dealership has a different facility footprint and staffing model, each requires customized right-sizing strategies, which means that information-sharing from the top must be relevant, appropriate and individualized.
In summary, Brown explains that we need creativity and support from auto makers, and communication.
“Successful communication is a two-way street. The moment we stop listening to our individual dealers is the moment we see manageable issues become massive black eyes on our industry.”
Alan Brown is a former Chairman of the Volkswagen National Dealer Advisory Council with 27+ years of leadership experience in the automotive space. He currently serves as Global Executive Vice President, Distributor and National Accounts of NuVinAir® – a Dallas-based startup offering a line of science-backed, proprietary products, and defined revenue-generating-platforms specific to the auto industry.
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