Monday, 6 February 2012

Dealers in the US have expressed reservations about corporate standard programmes they are asked by carmakers to implement in their dealerships.

“While new-car dealers see value in having clean and modern facilities, many have questions and, in a significant number of cases, are not convinced that the factory upgrades they are being asked to do will result in an increased return on investment,” according to a new study by Glenn Mercer  issued during the 2012 NADA Convention and Expo in Las Vegas.

“These programs – intended to encourage dealers to invest in store expansion, modernization and standardization – can place significant financial burdens on dealers, yet there is little hard evidence on the return of investment this spending might yield,” Mercer said.

NADA commissioned the “Factory Image Programs” study last August to provide an objective, unbiased and neutral analysis of the various factors that drive the economics of facility programs.

“The NADA research project brought all the various perspectives on this issue out into the open by speaking with a wide range of industry participants,” Mercer said.

“Our goal was to open up a dialog in which all parties could discuss facility requirements on a more rational, informed and fact-driven footing.”

Based on numerous interviews and discussions with automaker executives and a diverse selection of dealers, recommendations were provided to both parties, such as working together to reduce some of the tensions that exist over these issues.