Hyundai creates digital dealership with Rockar

By Rebecca Chaplin

HYUNDAI will be collaborating with Rockar to open the first digital car retailer this November.

Figures show that customers visit a car dealership just 1.3 times before they purchase a car. Plus, 93 per cent of all new car buyers conduct their research online and only step on the forecourt when they wish to sign on the dotted line.

Rockar Hyundai claim their new system will integrate in-store, online and mobile platforms to deliver a car shopping experience unlike any other. They will open their first store in Bluewater shopping centre but also say that if a customer does not want to speak to a sales person they won’t have to.

Rockar Hyundai say they will provide car buyers with an all-encompassing online and in-store service that will allow them to research, test-drive and get a price for their old car. Then they can choose a how to pay, purchase and service their new car all at the touch of a button.

Tony Whitehorn, president and CEO of Hyundai Motor UK, said: ‘I am delighted to be able to announce today the launch of Rockar Hyundai in early November 2014. Rockar Hyundai is a highly innovative and enticing addition to our existing Dealer Network. It offers the consumers an easy and flexible alternative to buying and owning a car without undermining the strength and infrastructure within our existing sales network. It is unprecedented in the UK Automotive Industry and is the shape of things to come.

‘Hyundai UK is developing a more integrated approach towards the way we retail cars, reflecting the changing ways in which people shop and the use of technology in the retail environment. Rockar Hyundai is an integral part of this, and to our continuous commitment to delivering an outstanding customer experience across our entire business.’

Simon Dixon, founder of Rockar.com, said: ‘I have been working with a dedicated team on this exciting customer proposition for the last two years. It has been driven, not only by our automotive retail experience, but by extensive customer research and a deep understanding of the evolving retail environment.

‘It is clear from research that customers buying a new car can find it an intimidating process. Rockar’s vision is simple – to ensure that the Customer is truly at its heart and feels empowered throughout the process. I am delighted that Hyundai and Bluewater have had the foresight to partner with Rockar on this exciting retail journey.’

---

Resource: 
Hyundai creates digital dealership with Rockar
Hyundai creates digital dealership with Rockar

Read More

UK car production down in August

UK car production fell 22.1 per cent in August, SMMT figures reveal.

Just under 995,000 cars were built in the UK during the month – up one per cent on January to August 2013 but down compared to the rest of 2014.

The SMMT says that this fall led to some manufacturers taking additional holiday shutdown.

Mike Hawes, SMMT chief executive, said: ‘The month of August – typically the quietest of the year – saw a 22.1 per cent drop in car production over 2013 as the 2014 calendar meant some key plants took additional shutdown compared to last year.

‘Volumes are still strong for the year-to-date, however, with the UK automotive sector in the midst of a renaissance. Global demand for quality UK-built products is at an unprecedented level, with significant investments into UK production facilities from government and industry currently being realised.’

---

Resource: 
UK car production down in August
UK car production down in August

Read More

Car dealers threaten to take London fight to Ontario Municipal Board

By Norman DeBono,

London’s car war won’t be over any time soon.

Both sides in the automotive spat over where a new car dealership will be located pledged Thursday to take the battle to the Ontario Municipal Board if they lose an upcoming city council vote on the issue.

“If council refuses the application . . . it will be appealed to the OMB,” said Alan Patton, a lawyer with Patton Cormier Associations representing Competition Toyota.

The proposed dealership reflects sound planning, won’t have an adverse impact and wouldn’t cause a new $50-million auto mall in southeast London to close, Patton said.

Competition Toyota has applied to the city to build a dealership on a 1.5-hectare site at Fanshawe Park Rd. and Highbury Ave. to replace its existing location on Oxford St. E.

The proposal was defeated at planning and environment committee this week. City council will vote on the committee recommendation Sept. 30.

The city’s planning department supported the application at the committee meeting, setting off a furor among owners in the auto mall on Dundas St. E. at Crumlin Side Rd.

Those dealers said they wanted to locate on that same north London site about three years ago but were told by city planner John Fleming and then-mayor Joe Fontana the city wouldn’t allow auto development in the north, the committee heard.

The city wants three areas of auto concentration: South on Wharncliffe Rd., west at Oxford St. and Wonderland Rd. and east at Dundas St. E.

Mall owners are frustrated by the Competition Toyota application, fearing if council approves it, other dealers will follow, harming their investment.

“The city needs to understand others are already looking in that area. This will not be a one-off but become an auto alley,” said Brian Semkowski, president of Shrew Sports, which owns the mall and sold lots to dealers.

Auto mall owners will appeal if council approves Competition Toyota’s application, he said.

“They can’t do it for one and no one else. It’s very frustrating for us.”

City planning staff backed the Competition Toyota proposal because it involves only one dealer, not a 22-hectare site, Fleming said at the meeting. Comparing the two projects is “apples to oranges,” he said.

The Dundas auto mall is home to five dealers, including London City Chrysler, MacMaster Chevrolet, Leavens Volkswagen and London City Mazda. The mall has room for two more dealerships.

Competition Toyota owns 1.5 hectares in the mall area.

---

Resource: 
Car dealers threaten to take London fight to Ontario Municipal Board
Car dealers threaten to take London fight to Ontario Municipal Board

Read More

August auto sales reach an 11-year high

By Jerry Hirsch

Consumers streamed into auto dealers last month, pushing industry sales to their highest level for an August in 11 years.

Chrysler, Ford, Toyota, Honda, Nissan and Hyundai all posted gains while General Motors and Volkswagen saw sales slip, according to monthly figures reported Wednesday.

"It was a fabulous month for the industry," said John Krafcik, president of car shopping company TrueCar Inc. Automakers sold nearly 1.6 million vehicles in the U.S. in August, a 5.5% increase from the same period a year earlier, according to Autodata Corp. August sales surpassed last year's total.

Auto sales are on track to exceed 16 million this year for the first time since 2007, said Michael Ward, an analyst with investment house Sterne Agee. U.S. light-vehicle sales exceeded 16 million units every year from 1999 to 2007 but plummeted as the nation headed into the Great Recession.

Favorable lending rates, an improving economy and a large number of vehicles coming off leases are supporting demand for new vehicles, Ward said.

"The industry has a lot of momentum," said Bill Fay, Toyota's U.S. sales chief.

Consumer confidence is up, interest rates are stable and fuel prices have eased, setting up a "close to perfect" environment for sales, Fay said.

August sales also were pushed by dealers who need to clear out 2014 models before new models arrive, said Jessica Caldwell, an analyst with auto shopping company Edmunds.com.

"TV and radio airwaves are filled with these clearance deals, and they're helping to push hesitant car shoppers into 'buy now' mode," she said.

Sales over the holiday weekend helped.

"Our Labor Day sale was huge," said Beau Boeckmann, president of Galpin Motors Inc., which owns nine Southern California auto franchises, including Galpin Ford, the largest Ford dealer in the nation. "We were a little bit worried about the month, but it turned out to be really strong."

Car dealers are having their best year since the recession, Boeckmann said. Buyers are snapping up trucks, sport-utility vehicles and crossovers.

That trend helped Chrysler sell 198,379 vehicles in the U.S. last month for a 19.8% gain over the same month a year earlier.

Sales rose 45% at its Jeep brand, which sells only SUVs and crossovers. The automaker also logged a 33% gain in Ram pickup truck sales. It sold nearly 44,000 trucks and has dramatically narrowed the gap with the Chevrolet Silverado, which logged sales of about 49,000 pickups last month.

It was Chrysler's 53rd consecutive month of year-over-year sales gains.

"This is an impressive streak for a company that was all but left for dead five years ago," Caldwell said. "Chrysler has been able to keep it going by diving into the subprime [auto loan] market more aggressively than other automakers and by jumping into the leasing game."

General Motors, the nation's largest auto seller, bucked the trend, logging a small decrease in U.S. sales in August. The Detroit automaker said sales fell 1.2% last month to 272,423 vehicles, according to Autodata. It blamed a tough comparison with a strong August in 2013.

"We see a strong fall selling season ahead for GM and the industry," said Kurt McNeil, U.S. vice president of sales operations. "Car-buying fundamentals like employment and energy prices are in good shape, consumer confidence has reached a post-recession high, and business investment is increasing."

Toyota sold 246,100 vehicles in the U.S. last month, a record August for the automaker and a 6.3% gain from the same month a year earlier.

Honda sold 167,038 vehicles last month, a 0.4% increase, and scored a rare win over its Japanese rival Toyota. Honda's August results were led by the sale of more than 51,000 Accord sedans. That knocked Toyota's Camry off its perch as the bestselling passenger car in America, at least for the month. Toyota sold about 44,000 Camrys in August.

Still, the Camry is expected to finish the year as the top-selling car. Ford's F-Series pickup will be the best seller overall.

But despite robust truck and SUV sales, Ford's August total was more muted, up just 0.4% to 221,373 vehicles, Autodata reported. That was still its best August sales in eight years.

"All around it was just a very good month for the industry," said John Felice, Ford vice president, U.S. marketing, sales and service.

Nissan said it had U.S. sales of 134,388 vehicles, an increase of 11.5% over the prior year and an August record. Hyundai sales rose 5.9% to 70,003 last month. That was only the second month in its history in which Hyundai had sold more than 70,000 vehicles. It was also an August sales record for the South Korean automaker.

---

Resource: 
August auto sales reach an 11-year high
August auto sales reach an 11-year high

Read More

Dealers in Georgia petition to shut Tesla down

by: Amy Wilson

Auto dealers in Georgia are the latest seeking to shut down Tesla Motors’ factory-owned stores.

The Georgia Automobile Dealers Association filed a petition of enforcement Friday with state regulators arguing that Tesla’s direct-sales model violates state law. Tesla has one store in the Atlanta suburb of Marietta and is planning two more stores in metro Atlanta.

“It’s just very simple -- we want them to comply with the law the way others are,” Bill Morie, president of the Georgia dealers association, told Automotive News.

Tesla did not immediately respond to a request for comment.

Georgia joins a growing list of states where Tesla has tussled with dealers over whether the electric vehicle maker’s factory-owned stores violate state laws on direct sales. In some states recently, including Pennsylvania and New York, compromises were reached, allowing Tesla to operate factory stores but with a cap on the number of locations allowed.

In its petition, the Georgia dealers association is asking state regulators to prohibit Tesla from selling its vehicles, revoke the company’s existing dealer license and deny any attempt by Tesla to renew or reapply for a license.

The association suggests that Tesla improperly obtained the license by claiming that it qualified for a statutory exception allowing direct sales for makers of custom vehicles selling less than 150 a year.

Tesla does not qualify for the exception, the association argues, because it does not manufacture to custom design specifications and it is already selling more than 150 vehicles in Georgia a year.

“New-vehicle dealers just want a level playing field on which to complete,” Morie said. “No one should be allowed to act as if they are above the law, especially when there is a simple path to compliance that everyone else has agreed to follow.”

That path to compliance? Using a franchised dealer network like other manufacturers, an association spokesman said.

With generous tax breaks for EVs, Georgia is a market of growing importance for electric vehicle makers.

Based on percentage of retail registrations, Atlanta ranked as the No. 2 EV market among major metropolitan areas in the 12 months ending March 31, according to IHS Automotive.

Of all new vehicles registered in Atlanta, 2.15 percent were EVs, behind only San Francisco.

---

Resource: 
Dealers in Georgia petition to shut Tesla down
Dealers in Georgia petition to shut Tesla down

Read More

Massachusets High Court Rules in Favor of Tesla

Source: Auto Dealer Monthly

BOSTON — The state’s highest court on Monday upheld the right of Tesla Motors to sell directly to Massachusetts consumers, rather than through a dealership network.

Dealers including Herb Connolly Chevrolet sued to stop Tesla from selling its high-end electric cars from its store in the Natick Mall, saying Tesla was essentially operating its own dealership. The Massachusetts State Automobile Dealers Association argued that a 2002 change in state law barred manufacturers from owning dealerships.

But the Supreme Judicial Court disagreed, ruling that the 2002 amendment “was intended and understood only to prohibit manufacturer-owned dealerships when, unlike Tesla, the manufacturer already had an affiliated dealer or dealers in Massachusetts.”

The SJC ruling upheld a lower court ruling that dealers had no standing to challenge Tesla.

Tesla Motors said it’s gratified by the ruling. “The mission of this company from the very beginning has been to evangelize for electric vehicles,” said the company’s deputy general counsel Todd Maron. “Massachusetts is a key market for that; it’s very progressive. So we are looking forward to getting on with business now that the legal situation has been clarified.”

Robert O’Koniewski, executive vice president of the state auto dealers association, accuses Tesla of monopolizing sales, and said his organization is disappointed with the ruling.

“We as an association are going to have to look at what the decision says and try to assess whether we need to go back to the Legislature and ask them to fix that,” O’Koniewski said.

Wilmington auto dealer Scott Dube told WBUR last year that he feared allowing direct-to-consumer sales could disrupt the entire franchise system of dealership networks.

Tesla, a Silicon Valley carmaker, has just two models that cost several times the average price of a car.

---

Resource: 
Massachusets High Court Rules in Favor of Tesla
Massachusets High Court Rules in Favor of Tesla

Read More

Automobile dealers told to protect consumers rights or face action

BY: The Peninsula

DOHA: The government has asked automobile agencies to comply with rules that guarantee the protection of consumer rights or face the music.

Car agencies must provide spare parts for new vehicles for three years after their sale as per rules, the Ministry of Economy and Commerce has said.

The ministry summoned senior officials from car dealerships that offer new vehicles for sale and asked them in a meeting to mend their ways and adhere to consumer protection rules.

In a statement, the ministry said if a dealer fails to provide an eligible customer with spare parts for more than 15 days in a row (within three years after the sale of a new vehicle), it should provide him with an ‘alternative car’.

The ‘alternative car’ should be with the customer until the required spare parts are provided by the dealer, Youssef Saad Al Suwaidi, a senior ministry official, said in the statement.

The Head of Commercial Fraud Combat Section at the Consumer Protection Department (CPD) said this rule not only applies to spare parts but also to after-sale service of new cars.

The CPD is part of the ministry. Its inspectors launched a drive for three months and discovered that car agencies were not complying with spare part and after-sale service rules.

They were also not complying with the conditions they specified as part of warranties they provided to customers in respect of new cars, the ministry said.

Inspectors caught many violations, Qatar News Agency (QNA) reported yesterday.

“During the campaign, inspectors caught a number of violations such as a dealer’s failure to provide spare parts to customers, or an alternative vehicle, and non-compliance with the guarantees given (to the customer),” said the ministry.

---

Resource: 
Automobile dealers told to protect consumers’ rights or face action
Automobile dealers told to protect consumers’ rights or face action

Read More

Incentives could push September into the record books

By: James Batchelor
 
FINANCIAL incentives for both motorists and dealers may push September into the car registration record books.

That’s according to CAP Automotive. Research by the company into the number of cars registered during the first half of September suggests a double digit increase on the same period last year.

If the trend continues, the new car market could even exceed the widely forecast total for this year of 2,450,000.

But behind the scenes, many dealers are increasingly unhappy about the pressure to increase new car sales, says CAP.

CAP’s market experts have been monitoring the sales performance of new car dealers and analysing the financial incentives that are fuelling this year’s rapid growth in registrations.

They found that car makers are taking a two-pronged approach to encouraging new car registrations by incentivising consumers and dealers alike.

For motorists the main carrot in the current market is finance deals carefully structured to provide an attractive monthly cost as well as the traditional discount on screen price.

But millions of pounds are also being poured into ‘dealer contributions’ to encourage the registration of new cars. With manufacturer contributions on some models as high as 25 per cent of the car’s value, car retailers are being given major opportunities to generously negotiate new car deals with their customers.

CAP has also found scores of deals between manufacturers and dealers are now in place until September 30 to encourage new car registrations. Examples seen by CAP include a manufacturer contribution to the dealer of nearly £17,000 on a £68,000 sports coupe and discount support of £500 and additional contribution of more than £800 on a popular small car, list priced just over £8,000.

The offer of substantial bonuses for registering new cars encourages dealers to register hundreds of thousands of new cars to themselves every year. But dealers are not always happy about the pressure on them to meet growing new car targets.

CAP cites one dealer writing anonymously in the IMI magazine who described new car sales figures in the UK as containing ‘a lot of fakery’.

Order books are growing too – some Audi A3 models are taking three to four months to arrive at dealerships.

Philip Nothard, CAP’s retail and consumer expert, said: ‘This has the potential to be the biggest September on record for the new car market and the signs are that the year-end figures may take 2014 into the record books.

‘We believe registrations for 2014 may exceed official forecasts but, behind the positive headlines, many dealers are unhappy.

‘While the typical new car retail customer is undoubtedly getting a better deal than at any time we at CAP can remember, many dealers are complaining that they are caught in a vicious circle.

‘And because more new cars registered today means more used cars appearing tomorrow, there are concerns in some quarters that depreciation will inevitably increase in future years.

‘CAP is already forecasting increased depreciation in our Gold Book future forecasts, based on the growth in supply over the next few years caused by the steady increase in registrations since the recession.’

---

Resource: 
Incentives could push September into the record books
Incentives could push September into the record books

Read More

Tesla Breaks the Auto Dealer Cartel

By: John Kerr

It was not entirely surprising that Nevada last week ponied up $1.3 billion in tax breaks to win the business of Tesla Motors. TSLA -1.83% State officials for decades have struggled to diversify an economy based on gambling and tourism, and the prestige of attracting the high-end electric-car company's massive new lithium battery factory was too great to resist.

But who could have guessed that the Silver State's auto dealers would help usher Tesla into the state?

As Nevada lawmakers celebrated luring billionaire Telsa CEO Elon Musk's factory to the Reno area, critics and supporters of the deal debated the long-term benefits of businesses playing states against each other to secure tax breaks in return for promises of job creation and development. It is also worth noting, though, how the compact exposes the hypocrisy of state laws that ban consumers from buying a new car from anybody but a licensed dealer.

Until last week, it was illegal for a Nevada resident to purchase a Tesla directly from the manufacturer.

All across the country, including in Nevada, Tesla has clashed with dealership groups that vehemently oppose the company's efforts to cut out the middleman and sell its cars straight to buyers. Dealers argue that Tesla's sales model runs afoul of state "franchising" laws banning direct automaker-to-buyer transactions. These statutes go back decades and intricately dictate the relationship between auto manufacturers and sellers while effectively protecting the investments of new-car dealers, an influential political constituency thanks in large part to their high sales-tax collections.

Yet in addition to rubber-stamping the agreement that waived Tesla's property, sales and business taxes for a decade or more—while throwing in discount power rates—the Nevada legislature also approved a bill last week that would exempt the auto maker from franchising regulations outlawing the company's retail approach. The state's auto dealers, who only weeks ago threatened to sue over the matter, shifted gears and endorsed the legislation.

"My car dealers want to assist in any way they can," John Sande of the Nevada Franchise Auto Dealers Association told the Reno Gazette Journal. "Nevada law does not allow Tesla to come in and sell directly to the consumer, so we are going to have to come in and change it so they can sell directly to the consumer."

No doubt the dealers balanced the pros and cons of agitating for their own self-interest against overwhelming political support for the deal and the spending potential of thousands of new, well-paid workers who may prefer a Ford or Chevy pickup over a $70,000 Tesla Model S. But the fact that Nevada legislators so quickly jettisoned a key provision of the state's dealership-franchise provisions speaks volumes about how essential these statutes really are to the well-being of their constituents.

There is no rational reason Tesla—or any other automobile manufacturer—should be restricted from selling new cars directly to those who seek to buy them. Arguments that franchise arrangements benefit consumers ignore not only the higher costs inherent in regulations that limit choice, but the benefits of a vibrant and responsive market in which new-car buyers are free to avail themselves of multiple purchasing options.

Franchisees in many other sectors of the economy, particularly the restaurant industry, prosper while creating jobs and generating state and local tax revenues—all absent the regulatory protection enjoyed by auto dealers. Relaxing laws shielding new-car lots would provide room for entrepreneurs to experiment and innovate while leaving existing interests free to do the same.

Tesla's habit of panhandling for taxpayer support—it also gains millions yearly through a politically imposed system of emission credits in California—makes it a lousy poster child for free markets and regulatory restraint. And Nevada's revised statute should be broader rather than just singling out the electric-car manufacturer for special treatment. But the state's decision to alter its franchise laws represents a modest step forward.

---

Resource: 
Tesla Breaks the Auto Dealer Cartel
Tesla Breaks the Auto Dealer Cartel

Read More

Toyota Sees Strong But Slowing Growth In 2014

BY: Admin

Toyota Motor Sales U.S.A. has projected a slowing rate of growth in auto sales in 2014, and is taking a slightly less optimistic posture than most analysts regarding this year's sales tally.

Still, Bob Carter, Toyota senior vice president of automotive operations, said Toyota "hasn't been this bullish on the auto business in a lot of years."

Toyota expects the industry to finish 2014 at 16 million sales -- less than some forecasts as high as 16.4 million -- but Carter allowed for possibly stronger results. This fifth consecutive year of sales growth would be the first such occurrence since the 1930s.

"We believe the growth will be driven more by broad economic strength rather than pent-up demand. That's good, because pent-up demand can carry you just so far," Carter said in a speech here to the American International Automobile Dealers Association.

With economists projecting GDP growth of 2.8 percent this year and 3 percent in 2015, the unemployment rate dropping to about 6.5 percent, and household net worth climbing sharply, the climate for auto sales growth is robust, Carter said.

Another factor is historically low auto loan rates, which look to stay solidly in the 3- to 4-percent range, Carter said.

"Auto loan rates may tick up again as the Fed eases the stimulus, but we believe they'll stay relatively low and affordable for most Americans," Carter said.

Toyota's own forecast for 2014 is to reach 2.3 million Toyota, Lexus and Scion vehicles sold, a 100,000-unit gain compared to 2013.

---

Resource: 
Toyota sees strong but slowing growth in 2014
Toyota sees strong but slowing growth in 2014

Read More

U.S Auto Sales Seen Ending Summer Without A Sizzle

 By Bernie Woodall

(Reuters) - U.S. auto industry sales in August will be about even with a year ago, not quite ending the summer in a sizzling fashion but still warm enough to continue the recovery from a recession now five years in the rear-view mirror.

Analysts polled by Thomson Reuters expect monthly sales of about 1.5 million new vehicles when automakers report them on Wednesday, with a seasonally adjusted annualized sales rate of 16.6 million. It should be the sixth straight month showing an annualized rate above 16 million, a level reached only twice in 2013.

Auto sales are a closely watched indicator of consumer demand, particularly for big-ticket items, and the industry accounts for roughly one-fifth of all U.S. retail spending.
While sales would be flat with last August, the annualized rate for the month would be up from 16.1 million a year ago because there was one less selling day this year.

Profit-eroding incentives remained high in August, as dealers trimmed prices to help clear lots and make way for 2015 models. Industry research firm Kelley Blue Book said incentives, including rebates and cash-back offers, were on track to end the month between $2,700 to $3,000 per vehicle.

The biggest discounts were on mid-size sedans, which are staying on dealer lots more than 80 days before being sold, compared to 47 days for small crossover sport utility vehicles, Kelley Blue Book said.

While auto sales have strengthened to nearly pre-recession levels, there is concern among some analysts that longer-term loans and increased lending to subprime buyers may be inflating sales. Some new vehicles are being sold with 7-year loans, which could cause owners to hold onto their cars longer, because equity is not established until late in the pay-off cycle.

Chrysler Group LLC, a unit of Fiat SpA (FIA.MI), and Nissan Motor Co (7201.T) once again gained market share in August to the detriment of sales leaders General Motors Co (GM.N), Ford Motor Co (F.N) and Toyota Motor Corp (7203.T), according to analysts.

Eight analysts polled by Reuters expect Chrysler to show a monthly sales gain of 13.5 percent, while Nissan is seen ending August up 2.4 percent. Among major automakers, the two are expected to be the only winners.

Michelle Krebs, an analyst with Kelley Blue Book, expects Chrysler will only enjoy a few more months of double-digit gains. This year's gains by Chrysler have been helped by the fact that sales of Jeep Cherokee SUVs were compared to low sales of a model it replaced in late 2013, the Jeep Liberty.

The Reuters poll showed monthly sales declines for GM, down 1.2 percent, Ford, down 1.4 percent, Toyota, down 2.3 percent and Honda Motor Co (7267.T) off 7.9 percent. Hyundai Motor Co (005380.KS) and its affiliate Kia Motors Corp (000270.KS) are seen down a combined 0.8 percent.

---

Resource: 
U.S auto sales seen ending summer without a sizzle
U.S auto sales seen ending summer without a sizzle

Read More

U.S. dealership buy/sell activity up 75% in first six months of 2014

by: DealersEdge

Buy/sell action for U.S. dealerships continued to increase dramatically in the first half of 2014, up 75% year-over-year, according to The Blue Sky ReportTM, released recently by Kerrigan Advisors.

Laying out the high, average and low multiples for each franchise in the luxury and non-luxury segments for the quarter, the report offers a detailed view of public and private company dealership acquisition activity. In addition to the continued rise in transaction activity - 95 dealership transactions in the first half of the year, versus just 54 in first half 2013 - key findings include that private buyers continue to lead buy/sell activity, luxury blue sky pricing is soaring, franchise price differentiation is increasing, and GM franchise acquisitions in the first half of 2014 have surpassed 2013 totals.

"We predict that, at the current pace of acquisitions, 2014 will see at least 200 dealership buy/sells, driven in large part by record blue sky values and an aging dealer body," said Erin Kerrigan, founder and managing director of Kerrigan Advisors. "However, we are seeing signs that the sharp rise in sellers coming into the market (offering buyers a greater selection of opportunities) is starting to put pressure on the blue sky values of certain lower demand franchises."

Report highlights

• Total transaction activity up 75% in the first half of 2014, as compared to first half 2013.
• Luxury blue sky pricing appears to have few limits, given the limited supply of luxury US franchises and the robust growth in luxury auto sales.
• Lithia and Group 1 saw their P/E multiples grow at double the pace of the sector in the second quarter, 32% and 39% respectively, versus 16% for the sector - Kerrigan Advisors believes the growth in Lithia and Group 1's valuation is driven by their commitment to dealership acquisitions.
• AutoNation continues to allocate its capital to stock buybacks ($182M in the first half, more than all of the other public companies combined) and still has not completed an acquisition this year (though there are rumors a large acquisition in on the horizon).Private buyers continue to lead acquisition activity. The top 10
• private acquirers over the last 18 months acquired 25% more dealerships than the six publics during the same time frame.
• High demand geographies result in premium blue sky pricing for certain franchises, particularly domestics.
• Multi-dealership transaction activity rose 40% in the first half of 2014, versus 2013 - transaction sizes are growing.

"The balance of 2014 promises a vigorous acquisition market; however, the industry should prepare itself for a slightly less robust acquisition future," Erin Kerrigan, founder of Kerrigan Advisors. "While large transactions are expected to rise in the near term, spending will slow as acquirers digest their acquisitions. Moreover, when auto sales slow (as predicted by industry analysts), pressure will come to bear on blue sky pricing: the closer we get to 17 million SAAR, the closer we get to the peak of blue sky values."

---

Resource: 
U.S. dealership buy/sell activity up 75% in first six months of 2014
U.S. dealership buy/sell activity up 75% in first six months of 2014

Read More

Fast Track Your Dealership with Document Management Software

By Jeff Frankel

As one of the most highly regulated industries in the country, automotive dealers and service companies are burdened with an overwhelming amount of paperwork - from managing customer deal jackets, vendor files, inventory and parts delivery, to safely and accurately handling employee records, accounting files and service orders - not to mention stringent audit and inspection requirements, FTC Privacy Rules and ISO compliance. 

But there is a better way to efficiently and securely store all the necessary paperwork while maintaining regulatory compliance: Document Management Solutions. Document Management  Solutions are sweeping the auto industry for good reason. Systems have progressed from simple scanning and archiving to business process automation. And that’s changing the way the automotive industry works – reducing the reliance on paper systems and delivering ROI with cost savings, greater efficiency, and improved customer service.

So, why invest in Document Management Software? Here are a few solid reasons:

Efficiently Store, Access & Route Documents
Gone are the days of yellowing files crammed in file cabinets. With Document Management Software, all business critical documents like repair orders and histories, customer service invoices and credit applications, warranty records and manufacturer documentation can be scanned into the electronic system then indexed, archived and stored indefinitely (and deleted in accordance with a retention schedule).  Using automated workflow documents can be routed to the right person and location automatically – ensuring timely processing of invoices, consistent notification of policies and streamlining approvals and signatures.  All documents – regardless of age or source, can be stored for access anytime, anywhere. Time saved on paperwork can be time better spent on improving operations and making sure customers are being attended. 

Quickly & Securely Retrieve Files

Unlike paper files, document management systems manage data in a secure, central repository that is easily searchable via a web-based interface on any internet–enabled device. Documents are current so all employees are working with the same information.  With real-time visibility, employees no longer need to leave the bay or front desk to search for paperwork – creating efficiencies and labor cost savings, as well as the space and archival storage savings, which can add up to thousands per year.

Maintain Regulatory Compliance

Auto dealerships need to securely retain sensitive customer data like financial records, driver’s licenses and applications. With permission settings, access is granted to only those with the security settings to do so – ensuring data is protected. Audit trails are automatically created without having to store paper copies in multiple locations.  Businesses can also easily apply and automatically enforce document retention policies, including document freezes or auto-destroy capabilities.

Streamline Operations

Advanced analytic and reporting capabilities ensure managers are apprised of performance in all areas – from finance and operations to quality control and customer satisfaction.  Managers can instantly access key information and collaborate on the go via mobile devices.  By integrating document management software with current invoicing, AP/Payroll and dealer management systems, dealers can eliminate the time consuming duplication of work and reduce costly financial and regulatory errors.

Improve Customer Service

Instantly access a customer’s automotive history from any front desk, back office or in-shop computer or internet-enabled mobile device to improve customer wait times and increase the accuracy of information for mechanics, salespeople and customer support reps. For multi-site dealerships and service organizations, instant access across all physical locations gives your business up-to-the-minute information about a customer’s entire record – ensuring prompt response times and consistency across your entire enterprise.

The time for the automotive industry to reap the benefits of document management software is now. From sales and service to parts, inventory, accounting and customer service – the answer lies in better management of the increasing piles of paperwork that are taking up time and tying you down.

---

Resource: 
Fast Track Your Dealership with Document Management Software
Fast Track Your Dealership with Document Management Software

Read More

NADA: Used-Car Prices Will Fall, but Gradually

By Jonathan Banks

Is a sharp correction in used-vehicle prices imminent? The National Automobile Dealers Association expects used-vehicle prices will indeed start to fall—but gradually, not all at once.

After the Great Recession, a sharp decrease in new-vehicle sales greatly reduced the supply of late-model used vehicles. At the same time, price-conscious consumers opted for more affordable used vehicles rather than new vehicles. These two factors helped lift used-vehicle prices by 17% from 2007 to 2013, according to NADA. Prices have grown another 2% so far this year to an all-time high of $16,560.

Now, an improving economy and increased employment have brought new-vehicle sales back up to pre-recession levels, which in turn has increased the supply of late-model used vehicles. Ultimately the additional volume of used vehicles and an increasingly competitive new-vehicle market – both in terms of pricing and consumer demand – will decrease used-vehicle prices.

But there are many reasons why such a correction in used-vehicle prices will happen gradually. First, while the used-vehicle supply is recovering, it’s being done at a steady pace. This means that associated pressure will also come into play incrementally over time and not in one massive wave.

Second, economic growth and an improving employment situation will unlock demand for both new- and used-vehicle buyers. Certainly, a stronger financial position will continue to see many consumers shift back to the new-vehicle market. But it will also support demand for used vehicles—particularly among hourly-wage and part-time workers.

Third, the used-car landscape is dramatically different today than it was in 2007. Dealerships have bolstered the used-vehicle world with increased staff, advertising, software and infrastructure all designed to make the used-vehicle department as much a part of the business as the new-vehicle department. (Large dealer groups like Sonic and Asbury are even opening standalone used-car dealerships.) True, this is partly based on the lack of new-vehicle demand during the financial crisis, but there is also a much longer, more stable trend underlying this as well: the dramatic increase in the quality and reliability of vehicles—coupled with the success of manufacturer Certified Pre-Owned programs—has blurred the lines between a new vehicle and a used vehicle in the minds of consumers.

All these factors greatly reduce the risk of an impending collapse in used-vehicle prices. To be sure, automaker actions will play a key role in determining how far prices will fall in the coming years. The current level of incentive spending is as high as it’s been since 2010. With North American production scheduled to increase 9 percent through 2017, this raises the potential for incentive spending to grow even further if new-vehicle sales don’t live up to expectations. But while incentives likely will continue to rise, NADA doesn’t expect spending (and cash discounts in particular, or the form of incentive with the most direct and immediate impact on used-vehicle prices) to return to the destructive levels of the last decade—at least in the near-term.

Taking current market trends into consideration, NADA expects used-vehicle prices to finish the year roughly on par with 2013, before dropping by 3.5 percent to 4 percent in 2015 and 2016. Notable, yes, but even with the cumulative 8 percent decline factored in, prices will still be well above levels recorded in the decade and half leading up to the last recession.

 

Jonathan Banks is executive automotive analyst for the NADA Used Car Guide.

---

Resource: 
NADA: Used-Car Prices Will Fall, but Gradually
NADA: Used-Car Prices Will Fall, but Gradually

Read More

China Said to Consider Relaxing Rules for Car Dealers

By Bloomberg News

Chinese authorities are considering relaxing restrictions on car dealers so they would be able to sell vehicles from multiple brands in the same store, people familiar with the matter said.

The Ministry of Commerce, responsible for regulation governing auto sales, met with dealers and carmakers last week to discuss changes to the rules, three people said, asking not to be identified as the talks were private. The government is also considering allowing parallel imports -- the practice of shipping cars without the authorization of the brand owner -- into China, one of the people said.

The proposed changes may tilt the balance of power away from automakers, which can prevent dealers from selling products made by rivals and dictate which cars are sold where. The move could also be a boon for China Grand Automotive Services Co. and other dealers in the country by giving them greater flexibility in choosing the cars they sell.

“This would untie dealers, allow them to do business in a more flexible way and help boost their profitability,” said Han Weiqi, an automotive analyst with CSC International Holdings Ltd. in Shanghai. “It will make the industry more competitive and ultimately benefit consumers with lower vehicle prices and maintenance costs.”

2005 Rules

Wuhu Yaxia Automobile Corp. (002607) and Pang DA Automobile Trade Co. (601258), two Chinese auto dealers, rose the most in two weeks in Shenzhen and Shanghai trading.

The Commerce Ministry didn’t reply to faxed questions from Bloomberg News. Dealers including China Grand Auto and Lentuo International Inc. (LAS:US) didn’t respond to e-mails seeking comment. General Motors Co. (GM:US) and Volkswagen AG, the two biggest foreign automakers in China, didn’t respond to queries. Neither did SAIC Motor Corp. (600104), the country’s biggest automaker.

According to China’s 2005 Enforcement Measures on Administration of Automobile Brands Sales, dealers can only sell cars after getting authorized to do so by the vehicle maker. Additionally, the rule puts automakers in charge of setting business forecasts, dealer locations and standards for setting up stores.

The government is also looking into adding provisions that would prevent automakers from forcing dealers to take on inventory or sell a specific number of vehicles for them, two of the people said.

The move adds to the regulatory risks faced by global carmakers in the world’s largest auto market recently. Antitrust investigations since last year have prompted groups representing U.S. and European companies to voice concerns that the Chinese government is targeting foreign businesses.

China has repeatedly rejected such claims, with Premier Li Keqiang saying yesterday that local companies are the targets of about 90 percent of anti-monopoly probes in the country.

---

Resource: 
China Said to Consider Relaxing Rules for Car Dealers
China Said to Consider Relaxing Rules for Car Dealers

Read More

F1 legend Nigel Mansell to Open New Mitsubishi Dealership

By Dave Brown

FORMULA ONE legend Nigel Mansell is taking the driving seat for a new team – Mitsubishi Motors in the UK.

The former World Champion will open a Mitsubishi franchise at his family-run dealership on Jersey. The new showroom and service centre, which will be managed by his son Leo, will open for business on September 16.

Nigel, who is chairman of The Mansell Collection dealership, which opened in St Helier in 2013, said: ‘Our dealership has gone from strength to strength and the time is right to get a franchise on board. We wanted a brand that crossed a lot of boundaries of motoring and with Mitsubishi there’s something for everyone.

‘The most exciting thing for me is how great the Mitsubishi product is. I have been involved with motorsport all my life and now we have an incredible opportunity to be blessed with selling these vehicles.

‘I know from Formula One that you must not leave any stone unturned, so we will make sure the customer gets the care and respect they absolutely deserve. It’s a very exciting time for us.’

The dealership also houses The Nigel Mansell Story – a museum displaying his trophies and some of his race-winning cars, including the Williams FW14B in which he won the world championship in 1992.

Nigel will take an active role and will be handing over the keys to customers when he is on the island. Leo, himself a former racing driver, is managing director at the dealership, which employs 14 people.

Leo said: ‘Mitsubishi is a perfect fit for us. The range of vehicles excites me and this is a great opportunity. Having the museum at the dealership is a real asset and it’s been a far bigger success than we imagined.’

He added: ‘It’s great working with family. We are eager to show the Mitsubishi range to the island. Jersey will be surprised by what they get from a Mitsubishi.’

While it was his daring overtaking manoeuvres and exciting style that won him enormous adulation from fans, these days Nigel and his team are focused on delivering excellent customer service.

Lance Bradley, managing director of Mitsubishi Motors in the UK, said: ‘It says much about Mitsubishi Motors’ current and upcoming products, and our plans for the brand in the UK, that Nigel and Leo have chosen to join us, because there are a lot of brands that would have loved to have them. Their vision is one of an incredible level of service for the customer and that aligns perfectly with what we do. We’re absolutely delighted to be working with them.’

Mitsubishi was the fastest-growing mainstream car brand last year and sales in 2014 are equally impressive – up by 36 per cent.

To arrange a test drive at The Mansell Collection call 01534 880606 or go to www.themansellcollection.co.uk.

---

Resource: 
F1 legend Nigel Mansell to open new Mitsubishi dealership
F1 legend Nigel Mansell to open new Mitsubishi dealership

Read More

Owners of 8 N.J. Dealerships Reach $1.8M Settlement For Deceptive Practices

By: Admin

The New Jersey Division of Consumer Affairs has reached a settlement of $1.8 million, plus consumer restitution, from eight auto dealerships and their owners. The settlement resolves an investigation into alleged deceptive sales tactics at the dealerships.

Carmelo Giuffre and Ignazio Giuffre are accused of failing to disclose existing mechanical defects or past damage to used cars; charging for supplemental warranties and other costly “after-sale items” without customers’ consent; and failing to honor the negotiated or advertised prices for vehicles.

The settlement includes Route 22 Toyota, Route 22 Honda, Route 22 Nissan, and Route 22 Kia, all located in Hillside, as well as Hackettstown Honda, Hudson Honda, Freehold Hyundai, and Freehold Chrysler Jeep. All eight dealerships are owned by Carmelo and Ignazio Giuffre.

“This settlement is a tremendous success for the consumers who were affected by the alleged deceptive sales tactics,” Acting Attorney General John J. Hoffman said. “The consequences, including a civil penalty of $1.8 million, are particularly appropriate in light of the fact that the owners of these dealerships allegedly violated an earlier settlement in which they had promised not to engage in such practices.”

The State alleged that actions by the dealerships directly violated a prior settlement that Carmelo and Igazio Giuffre reached with the state in 1999. That agreement was related to similar consumer complaints received by the state regarding the dealership's practices.

The Division of Consumer Affairs received complaints from numerous consumers who documented a host of allegations against these dealerships. In addition to bait-and-switch tactics and add-on sales without consent, consumers alleged that the dealerships failed to refund deposits in a timely manner after consumers either canceled sales or were denied financing; advertised cars without including required information such as vehicle identification numbers, thus preventing consumers from being able to check the vehicle’s history of damage and use; and failed to provide consumers with motor vehicle titles and registrations in a timely manner.

“Buying a new or used vehicle can be an intimidating process, especially for consumers who lack the ability to independently learn about a used car’s condition or history before making a decision,” Division of Consumer Affairs Acting Director Steve Lee said. “Our state laws protect all consumers by ensuring they have access to all relevant information when buying a motor vehicle. This settlement is intended to ensure that these dealerships will not again violate our laws or deceive potential customers.”

In February 1999, Carmelo and Ignazio Giuffre, as well as Route 22 Toyota, Route 22 Honda, and Route 22 Nissan entered into a settlement in which the defendants agreed to pay $450,000, including $250,000 as a compensatory fund for consumers, to settle similar complaints by consumers.

The new settlement requires a payment of $1.8 million, which includes $1,733,059 in civil penalties and $66,941 to reimburse the state’s investigative costs and attorneys’ fees.

In addition to that payment, the defendants must work to resolve the complaints of 45 consumers who documented their allegations with the Division of Consumer Affairs.

Additionally, under the settlement, the defendants must, at their own cost, hire a state-approved compliance monitor for two years. The monitor will oversee the defendants’ compliance with all applicable state and federal laws, rules, and regulations, and with the defendants’ own internal policies and procedures; will review the defendants’ policies and procedures and make any recommended changes; will facilitate the resolution of additional consumer complaints; and will provide written quarterly reports to the Division of Consumer Affairs.

---

Resource: 
Owners of 8 N.J. Dealerships Reach $1.8M Settlement For Deceptive Practices
Owners of 8 N.J. Dealerships Reach $1.8M Settlement For Deceptive Practices

Read More

MPI Changes How It Enforces Rules For Auto Dealers, Garages

By Vera-Lynn Kubinec

When you buy a car at an auto dealership, you want to know whether the dealer has a good track record or a sketchy one. Likewise, if you need to get a safety inspection done on a vehicle, you want to know if you can count on the garage doing the work.

In 2010, the Manitoba government announced a new era of transparency when it said it would start naming car dealerships and garages that ran afoul of regulations.

The move followed a number of stories by the CBC News I-Team that highlighted consumers' problems with buying cars.

But after a steady stream of offending dealers and garages being sanctioned and named on Manitoba Public Insurance's website, the information abruptly stopped coming more than a year ago.

The last time there was a new sanction posted on the site was in April 2013.

So what's going on?

MPI will still publicize sanctions. It's just that it hasn't sanctioned any garages in nearly a year and a half, even though garages and dealers are continuing to run afoul of regulations.

Spokesperson Brian Smiley says the agency has changed the way it enforces the rules for dealers and inspection stations, from a "punitive, adversarial" approach to an educational one.

"That's resulted in no sanctions being listed due to the fact the mechanics, the inspections stations, have realized that education and cooperation is the best way to go. From our perspective we always want to work in partnership with the inspection stations," Smiley told CBC News.

The sanctions that were posted between November 2010 and April 2013 were for wide-ranging offences such as:

• Inaccurate or incomplete vehicle inspections.
• Making false statements.
• Not disclosing a material fact on a vehicle sold.
• Failing to act with honesty and integrity, including odometer tampering.

The mechanics and dealers had their business permits suspended for periods ranging from three months to five years, and some of them permanently.

Sensing that consumers needed better protection when doing business with garages and auto dealers, the NDP government announced in 2010 that it would amend the Drivers and Vehicles Act to allow publishing the names of offenders and the penalties against them.

The government even said at the time that its legislation had the support of the auto sales industry, including the Manitoba Used Car Dealers Association and the Manitoba Motor Dealers Association.

The minister responsible for MPI, Andrew Swan, announced the change saying, "These amendments provide transparency."

"The protection of consumers must always remain a priority and the publicizing of names and sanctions goes a long way in accomplishing this goal," Swan said in a July 2010 release.

Education the best way, says MPI

So after three years, why did MPI shift away from penalizing the offenders?

"Education is the best way to correct errors that were taking place," Smiley explained.

He said the number of training sessions provided by MPI's Vehicle Standards and Inspections branch has increased from 253 in 2012 to 442 in 2013.

There are about 1,500 authorized inspection stations in the province and nearly that many auto dealers. MPI gets complaints from the public about them.

Smiley said in 2013 there were 178 valid complaints, including 30 against dealers and 148 against garages. Warning letters were issued to 42 operators.

A spokesperson for Swan said the lack of suspensions demonstrates the legislation is working.

"Since the legislation was introduced, many of the inspection stations that weren't offering acceptable services have left voluntarily or because of sanctions," said a government statement to CBC News, noting that complaints from the public have dropped significantly.

The province said the types of infractions also are tending to be less serious.

Asked if the new approach is "softer", Smiley disagreed. He said the public can have confidence in the results.

"The consumer can take satisfaction in knowing that Manitoba Public Insurance is working very closely with the inspection stations," he said.

But what about the transparency the minister talked about in 2010?

"Well, there is transparency in the sense that if a station does receive a show-cause hearing and is suspended and receives a sanction, it is listed on the [MPI] website," Smiley said.

From the province's viewpoint, nothing has changed and the names of anyone sanctioned will continue to appear on the website when warranted.

---

Resource: 
MPI Changes How It Enforces Rules For Auto Dealers, Garages
MPI Changes How It Enforces Rules For Auto Dealers, Garages

Read More

GA auto dealers want Tesla's sales license revoked for selling too many cars

By David Yirchott

Tesla Motors and their Model S electric car are becoming more popular among Atlantans. But the company is upsetting other Georgia automobile dealerships. Those dealerships are saying Tesla is not complying with a state law that regulates how many vehicles a dealership can sell. So, right now, it is a little east coast versus west coast argument with the California automaker.

The Georgia Automobile Dealers Association filed a complaint claiming Tesla's sales out of the Marietta store violate Georgia laws. That industry group is requesting that Tesla's selling license in Georgia be revoked.

The state law allows for a maximum of 150 vehicle sales at any automaker-owned stores. According to the complaint, Tesla has apparently sold 173 Model S sedans there during the 8-month period from October 2013 to June 2014.

Tesla is not going down without a fight. They say that under their license agreement sales figures are measured by the calendar year.

I reached out to both the Marietta store and Tesla Headquarters to find out how many vehicles have been sold since the beginning of this year. Neither would answer my question.

---

Resource: 
GA auto dealers want Tesla's sales license revoked for selling too many cars
GA auto dealers want Tesla's sales license revoked for selling too many cars

Read More

Georgia dealers want Tesla store shuttered for selling too many Teslas

By Steven Lang

Imagine owning the most popular automaker in the United States. Now imagine a special ​interest group eliminating your ability to serve over 10 million Americans unless you did business with their unique cartel.

That's in essence what happened right before Labor Day weekend, when the Georgia Auto Dealer Association filed a petition with state officials seeking to cancel Tesla's license to sell its cars in the state of Georgia.

Tesla's crime? Selling 173 cars directly from a factory-owned store located 25 miles away from Atlanta, the only Tesla retail location in Georgia. The dealers say Tesla can only sell 150 cars a year from the shop under state rules, and therefore should lose its dealer license entirely.

“It’s just very simple -- we want them to comply with the law the way others are,” Bill Morie, president of the Georgia dealers association, told Automotive News.

The elimination of one store in a state of 10 million people may seem like a minor blow given that there is still a five-month waiting list for the Tesla Model S. But the long-term cost to Tesla may be far greater than most consumers and investors would imagine.

If the dealers prevail, here's where the nearest Tesla outlets would be, and their respective distances from metro Atlanta:

Nashville: 4 hours

Tampa: 6 hours

St. Louis: Over 8 hours.

How many of you would be willing to travel four hours each way just to look at one car?

As a car dealer, I have become well acquainted with the age-old saying "people buy with their eyes," and there's a lot of truth to it. The reason why car dealers pay millions of dollars for prime commercial real estate is because all those eyeballs browsing up and down the road translate into sales.

People buy as much from convenience as they do from exposure. Tesla's competitors such as the Chevy Volt and Nissan Leaf are sold at thousands of dealers throughout America, and nearly all of them are located in areas where tens of thousands of consumers go to and fro every day.

These locations give these manufacturers a huge advantage in the new-car marketplace. By fighting Tesla's ability to compete without a dealer network, these manufacturers and dealers have carved out a no-Tesla territory that now stretches through 26 states and 200 million consumers. In those states, Tesla can't sell directly to the public. Many of those states have enacted legislation that would also limit your ability to even test drive a Tesla. Meanwhile, dealers tout the benefits of the current system, such as the video above made by the National Automobile Dealers Association, which never mentions Tesla but warns that going without dealers will only hurt consumers.

This is possible becase special-interest groups in the auto industry have extremely tight relationships with statehouse legislators. These relationships are so well-honed that certain dealer-sponsored legislation can often pass unanimously —even if it will amount to a substantial tax increase for the citizens of that state.

That is exactly what took place in Georgia in 2013. Private sales of motor vehicles used to be non-taxable in the Peach State. A private-party transaction resulted in no taxes charged or collected between the parties. This law made sense, since most car owners are not car dealers. 

Unfortunately for Georgians, the state wanted more revenue. This resulted in the introduction of a "Title Added Value Tax" which meant that everyone would pay a flat 6.5% tax based on a vehicle's value. Everyone paying the same sounds like a fair deal, but in the end that's not what happened.

Georgia dealers that self-finance vehicles (buy-here, pay-here dealers) were given a 2.5% tax reduction that lowered their tax rate to only 4%. Also, trade-ins were allowed to be used as deductions, which gave dealers another edge over private sellers. The bill passed unanimously through the Senate with 95% of House members voting for it as well.

This level of complicity between dealer associations and legislators is what Tesla now has to deal with in 26 states. Every prohibition of direct sales to the general public leaves Tesla with a double-edged sword that harms the company and their consumers.

Either Tesla and Elon Musk can give in, hire dealers, pay them incentives and rebates to market their vehicles which will then be passed onto consumers, and eventually cede creative control over how it sells its product. Or it can pursue the legislative and legal fights, where the needs of common citizens often don't matter.

I'm glad that Tesla has taken the high road. I know a lot of dealers who welcome competition and work hard to earn their customers' loyalty and respect. As a car dealer myself, I just wish more of my peers would accept the tenets of free enterprise.

---

Resource: 
Georgia dealers want Tesla store shuttered for selling too many Teslas
Georgia dealers want Tesla store shuttered for selling too many Teslas

Read More

Dealers gear up for record new car registrations in September

by: John Kirwan

Dealers are gearing up for what is expected to be a record September plate-change for new car registrations.

Registrations continue to be driven by a cocktail of attractive PCP and finance deals, low interest rates and strong trade in values for used cars.

Sales in September last year were up 12% to 403,136 units, easily outstripping the 394,806 recorded in the March plate month, traditionally the strongest of the two months.

September 2013 was also the biggest sales month since March 2008, when the market was being kept afloat by the government’s Scrappage Incentive Scheme.

In the year to July, the latest figures available, the market was running 10.1% ahead with 172,907 registrations.

july saw the 29th consecutive month of growth prompting the SMMT to forecast the biggest new car market in 10 years. The rate of growth in July had slowed to 6.6%, following the very strong first half.

The August registration figures are due to be published this week.

---

Resource: 
Dealers gear up for record new car registrations in September
Dealers gear up for record new car registrations in September

Read More

Tesla Banned From Selling Cars By Georgia Car Dealers

By Julie S julie.s@hngn.com

Auto retailers in Georgia filed a petition to the Georgia Department of Revenue to ban Tesla Motors Inc. from selling its sedans within the state.

According to the Georgia Automobile Dealers Association, the electric carmaker is selling more than the allowed number of cars, which violates the state's rules. The group consists of 500 dealerships that want the government agency to revoke Tesla's license to sell.

"It's just very simple -- we want them to comply with the law the way others are," Bill Morie, president of the Georgia Dealers Association, told Automotive News.

Tesla's license to operate in Georgia only allows the company to sell cars manufactured using the specifications that the customer has requested on the vehicle's design. The company is also limited to selling only 150 units per year. The petition highlighted that Tesla has sold more than 173 cars from October 2013 to June 2014 in one outlet in Atlanta.

"It's difficult to find fault in the dealers association point that manufacturers should adhere to the existing laws," Eric Ibara, senior analyst for Kelley Blue Book in Irvine, California told Bloomberg. "With the success of the Model S and the prospect of future Tesla products, it's also not hard to envision a groundswell of Georgia voters petitioning their lawmakers into allowing for the sale of these cars in their state."

This is not the first time that Tesla got involved in complaints like this. The company also had the same issue in New Jersey, Ohio, and Pennsylvania. Tesla CEO Elon Musk defended that the Model S sedans are best sold by their own staff that can provide more information about the vehicle's features and utilities.

Tesla refused to comment about the petition, while the Georgia agency has confirmed that the petition was filed on Friday.

---

Resource: 
Tesla Banned From Selling Cars By Georgia Car Dealers
Tesla Banned From Selling Cars By Georgia Car Dealers

Read More