Automotive News - October 27, 2008 - (Page 23) Advertisement Advertisement Time For Manufacturers To Put An End To Dealer Brokering I have always enjoyed the relationship I have with the manufacturers. However, the success that both manufacturer and dealer body seek can only be accomplished by working closely together. This has never been more important than in today’s turbulent market. Manufacturers are asking dealers to upgrade facilities, acquire additional property and offer customer amenities, such as loaners, free car washes etc. while the dealer is faced most cases, diminishing volume. The manufacturers have heard our plea that the eroding and diluting of our primary market areas and disappearing Fleet sales are one thing but We know that no matter where the vehicle is delivered, it is a sale for the manufacturer. But just take a look at the front end gross of $20,000, $30,000, or even $50,000 vehicles. I do not believe that there is a product sold in this great country of ours that could earn so little return. The manufacturers would have to agree, it is impossible to establish a relationship with a customer who has never visited a showroom. Product Specialists will never have the opportunity to explain the safety and operating features certainly not the added value of our of which we purchase directly from the manufacturers. I am sure the manufacturers realize that dealers centers. Since brokers can’t offer the same products and services as dealers, the consumer is ultimately shortchanged. As one factory representative said to me off the record “The only way brokering could ever be controlled is with a corporate policy stating that the consumer has to come into the dealership to buy and take delivery of their car.” My answer to this is “if that’s what it takes, then so be it”. Brokering undermines the brand management efforts of dealers and manufacturers to offer consumers a high quality purchasing experience. You can’t dress nor, to explain to the customer the vehicle safety and operating features. What more do you need? Otherwise, performance, owner loyalty or service Call it what you want, “if it walks like a duck and quacks like a duck, it is a duck”. Brokering makes it impossible to satisfy the manufacturer’s demands to retain and service our present and future customers. We are being held to sales effectiveness while dealers are allowed to invade our markets by actually having unauthorized making it impossible to achieve factory requirements. These brokers who “allegedly do not exist” are stocking product on their property and have access to customer identity information, leaving the manufacturer even more exposed. The information contained in the documents provided to the broker to close the deal and deliver the vehicle may implicate Customer Privacy Laws and the Red Flag Rule preventing identity theft. Some brokers actually talk to the lending institutions, including captives, and have access to the dealer/manufacturer communication network. Why can’t the manufacturers harness these dealers? Instead they use statements such as “we’re doing our best”. Well, obviously that’s not enough. If they really want to know who they are, let them talk to their own factory representatives who already dealers are. we be receiving cautionary letters from the manufacturer while we’re making more capital investments to stores that consumers may never visit. The manufacturers must close the loopholes that allow many dealers to put 30 – 40% of their cars in other dealers’ markets through brokering or whatever name you want to call it. There may be parts of the country that are not affected however, this is a nationwide cancer that has grown and keeps growing. It must be stopped. The manufacturer and the dealer must stand together for the integrity of the franchise, enabling us to achieve customer’s needs. Without a proper return of investment, the manufacturer is ultimately causing the consumer to be shortchanged from experiencing the full value of our brand. Certain mortgage brokers have devastated the real estate business. We cannot allow this to happen to the automobile industry. Only the manufacturer can defend our market areas by eliminating these sell fewer cars but WILL insure the value of our franchises increasing customer satisfaction and limiting liability problems. If the controlling of brokering sales is impossible because of technicalities in the dealer agreement, then it must be changed. The Franchise Agreement already requires that the Dealer conduct business only at the approved location, and does not authorize the Dealer to permit brokers to deliver to the disguise them as dealership employees delivering vehicles out of sandlot locations. There should be value to our franchise system and protection of the investments we are making to enhance the customer experience. The manufacturers have many controls that affect the dealer body. which a customer is sold a car. The manufacturers should call customers in order to verify exactly what process took place . . . When did the customer visit the dealership? Where did they pick up their car? They need to know anything else that could protect the consumer and our franchise system. Robert G. Ciasulli Robert G. Ciasulli, CEO Bob Ciasulli Auto Group Sincerely,
Table of Contents Feed for the Digital Edition of Automotive News - October 27, 2008 Chrysler dealers under GM? States would rule Survey: Worried dealers flee GMAC Va. dealers turn to local credit unions Anxiety over Chrysler: Deal or no deal? Ford, GM execs join panels looking at eco-friendly options Big pickups, SUVs gain share Chrysler will cut 4,300 salaried jobs by year end BMW seeks joint vehicle electronics effort Runkle: Give tiny suppliers a chance VW goal: 80% N.A. content for Tenn. plant April Wortham China's BYD plans U.S. hybrids Lucky Icahn lost Lear Mahindra's U.S. launch to get $60 million ad drive Toyota may renew no-interest loans Hesterberg, Thomson will address congress Desperate industry begs feds for help Hyundai dealers want ads to pitch favorable loans Toyota, GM top global r&d spending After Detroit 3 take back design, supplier sitting pretty Germany's Preh supplies F-150 ventilation part Buehler is Volt supplier Freescale: New infotainment chip Are they too big to fail? A goal for GM: Buy back full control of GMAC Tax credit would move domestic cars GMAC loan bonus is a bad idea Take a good look: Toyota is losing its halo What flexibility is and what it isn't Toshiba joins battery battle Personnel Hyundai slows Ala. output of Sonata, Santa Fe Picture this LaNeve: GM marketing budget faces '09 hit Hyundai counts on luxury, hybrid hopes Keogh: Audi belongs with top luxury brands Dealers Court overturns class-action status in Blue Oval suit 2 major lemon-law lawyers lose right to practice in Md. Auctions offer more online for just-in-time dealers Used-truck prices higher in September Lack of used Minis limits certified program Wood trim maker expects to avoid worst of woes VW: U.S. may get Scirocco after all Ford's new F-150 is built for jobs, not jaunts Think of it as GPS for tools Feds look at China-made valves on Ford tires Shareholder value tumbles in 3rd quarter Shareholder value tumbles in 3rd quarter Ford truck marketing exec: Hybrid pickup 'publicity stunt' Survey: Ford Motor reliability improves Chrysler heir: Get back to basics Farley has bright idea to boost auction action Kerkorian speeds away from autos Names familiar? NADA leadership is a family affair Mitsubishi bucks trend on profits New trade debate in the works? Beware the 'vital' deal Automotive News - October 27, 2008 Automotive News - October 27, 2008 - (Page Intro) Automotive News - October 27, 2008 - (Page Bellyband1) Automotive News - October 27, 2008 - (Page Bellyband2) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 1) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 2) Automotive News - October 27, 2008 - Chrysler will cut 4,300 salaried jobs by year end (Page 3) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 4) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 5) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 6) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 7) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 8) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 9) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 10) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 11) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 12) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 13) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 14) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 15) Automotive News - October 27, 2008 - Hyundai slows Ala. output of Sonata, Santa Fe (Page 16) Automotive News - October 27, 2008 - Picture this (Page 17) Automotive News - October 27, 2008 - Picture this (Page 18) Automotive News - October 27, 2008 - Picture this (Page 19) Automotive News - October 27, 2008 - LaNeve: GM marketing budget faces '09 hit (Page 20) Automotive News - October 27, 2008 - Hyundai counts on luxury, hybrid hopes (Page 21) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 22) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 23) Automotive News - October 27, 2008 - Dealers (Page 24) Automotive News - October 27, 2008 - 2 major lemon-law lawyers lose right to practice in Md. (Page 25) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 26) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 27) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 28) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 29) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 30) Automotive News - October 27, 2008 - VW: U.S. may get Scirocco after all (Page 31) Automotive News - October 27, 2008 - Feds look at China-made valves on Ford tires (Page 32) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 33) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 34) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 35) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 36) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 37) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 38) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 39) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 40)
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