DEALER SURVEY - Japanese-brand dealers feel all right. Domestic retailers? Don't ask.
02-13-06, 08:21 AM
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DEALER SURVEY - Japanese-brand dealers feel all right. Domestic retailers? Don't ask.
AUTOMOTIVE NEWS DEALER SURVEY
Mixed messages
Japanese-brand dealers feel all right. Domestic retailers? Don't ask.
David Kushma
Automotive News / February 13, 2006 - 6:00 am
Domestic automakers' troubles are darkening their dealers' attitudes about business prospects this year, a new Automotive News survey suggests.
By contrast, dealers who sell cars and trucks built by Toyota, Honda and Nissan foresee smooth sailing in 2006.
The unscientific Web survey, conducted the week of Jan. 30, attracted responses from more than 1,200 dealers, nearly all of them in the United States. Here are some highlights. For a more detailed summary of the survey results, go to autonews.com/moreonline.
Sales forecasts: A split between Detroit 3 and Japan 3 dealers
About half of all dealers in the survey said they expect higher new-vehicle unit sales and higher net profits this year than they made last year. But those results mask deep differences in outlook between Big 3 and Japan 3 dealers.
Two-fifths of the 300-plus General Motors dealers who responded said they expect lower profits in 2005. About a third predicted lower new-vehicle sales.
Responses were comparable among the nearly 300 dealers in the survey who sell Ford Motor Co. brands.
Bob Maguire, a Chevrolet dealer in Bordentown, N.J., and former chairman of the National Automobile Dealers Association, says he expects to boost profits and new-vehicle sales this year.
But he told Automotive News: “GM and Ford are going to lose good-quality dealers because they can’t make a living anymore.”
Adds Wayne Culver, a Ford dealer in Lillington, N.C.: “2005 was a horrible year because of all the employee plans and lost market share. Lord willing, it can only go up from there.”
The roughly 160 Chrysler group dealers in the survey were a bit less pessimistic about sales; about a fourth expect lower new-vehicle sales this year. But almost half said they expect lower profits in 2005.
At the same time, more than four-fifths of the 200 Toyota, Honda and Nissan dealers who took part in the survey said they expect higher sales this year. Nearly three-fourths anticipate higher profits.
Factory relations: Asian makers are great listeners
About two-thirds of all dealers said their relations with the factory that produces their highest-volume brand are great or good. Roughly the same percentage said those relations have improved or stayed about the same over the past year.
But half of the Ford Motor and Chrysler group dealers characterized their factory relations as just fair or strained. About two-fifths of both groups said those relations got worse in the past year.
Ford dealer Wayne Culver in North Carolina says Ford executives “do a good job of listening.” But he adds: “I think they have a tough time putting actions into place.”
Roughly a third of GM dealers said their factory relations deteriorated last year.
The responses of Japan 3 dealers were virtually a mirror image. Six of every seven Toyota, Honda and Nissan dealers called their factory relations great or good. And more than a third said those relations have gotten better in the past year.
“The Asians listen and try to work with the dealers,” says Michael Koufakis, a Toyota dealer in Bayside, N.Y. “It starts with great product. They look at the market, and they build according to demand. They’re not overdealered, and the dealers make money.”
Chrysler, Ford put on the pressure
Three-fifths of dealers surveyed said they are getting the vehicles they want from the factory for their highest-volume brand. But nearly half said the factory is pressuring them to take vehicles they don’t want.
Ford Motor dealers were even more likely to complain of not getting the cars and trucks they want.
More than four-fifths of the Chrysler group dealers surveyed said the company is imposing unwanted vehicles on them.
But Shannon Tedford, new-car manager at Lewis Chrysler-Dodge in Fayetteville, Ark., says he is excited about several of the company’s new vehicles, especially the Dodge Caliber. He says the Chrysler group could gain market share this year at the expense of GM and Ford.
Says Tedford: “This is the year to step on the accelerator, and I see them doing it.”
Whose value?
Among other survey findings:
Three-fourths of dealers said they oppose factories’ efforts to bring sticker prices closer to transaction prices, if that means cutting the dealer discount.GM dealers felt more favorably than the overall sample of dealers about the concept of value pricing. GM reduced list prices last month on 80 percent of its models in an effort to bring them closer to transaction prices. To help finance the price reductions, it cut its dealer discount by 1 to 3 percentage points.
Most dealers who responded to the survey said their highest-volume brand has too many dealerships in their region.Two-thirds of GM, Ford Motor and Chrysler group dealers complained of overdealering. Only a third of Toyota, Honda and Nissan dealers said overdealering is a problem.
Two-thirds of dealers said they saw more upside-down customers last year than they did in 2004. Such customers owe more on their trade-ins than the vehicles are worth.Chrysler group dealers were more likely to identify upside-down customers as a problem than dealers who sell other brands.
Nine out of 10 dealers said good fuel economy is very or somewhat important to their customers.
Greg Migliore contributed to this report
source : autonews
Mixed messages
Japanese-brand dealers feel all right. Domestic retailers? Don't ask.
David Kushma
Automotive News / February 13, 2006 - 6:00 am
Domestic automakers' troubles are darkening their dealers' attitudes about business prospects this year, a new Automotive News survey suggests.
By contrast, dealers who sell cars and trucks built by Toyota, Honda and Nissan foresee smooth sailing in 2006.
The unscientific Web survey, conducted the week of Jan. 30, attracted responses from more than 1,200 dealers, nearly all of them in the United States. Here are some highlights. For a more detailed summary of the survey results, go to autonews.com/moreonline.
Sales forecasts: A split between Detroit 3 and Japan 3 dealers
About half of all dealers in the survey said they expect higher new-vehicle unit sales and higher net profits this year than they made last year. But those results mask deep differences in outlook between Big 3 and Japan 3 dealers.
Two-fifths of the 300-plus General Motors dealers who responded said they expect lower profits in 2005. About a third predicted lower new-vehicle sales.
Responses were comparable among the nearly 300 dealers in the survey who sell Ford Motor Co. brands.
Bob Maguire, a Chevrolet dealer in Bordentown, N.J., and former chairman of the National Automobile Dealers Association, says he expects to boost profits and new-vehicle sales this year.
But he told Automotive News: “GM and Ford are going to lose good-quality dealers because they can’t make a living anymore.”
Adds Wayne Culver, a Ford dealer in Lillington, N.C.: “2005 was a horrible year because of all the employee plans and lost market share. Lord willing, it can only go up from there.”
The roughly 160 Chrysler group dealers in the survey were a bit less pessimistic about sales; about a fourth expect lower new-vehicle sales this year. But almost half said they expect lower profits in 2005.
At the same time, more than four-fifths of the 200 Toyota, Honda and Nissan dealers who took part in the survey said they expect higher sales this year. Nearly three-fourths anticipate higher profits.
Factory relations: Asian makers are great listeners
About two-thirds of all dealers said their relations with the factory that produces their highest-volume brand are great or good. Roughly the same percentage said those relations have improved or stayed about the same over the past year.
But half of the Ford Motor and Chrysler group dealers characterized their factory relations as just fair or strained. About two-fifths of both groups said those relations got worse in the past year.
Ford dealer Wayne Culver in North Carolina says Ford executives “do a good job of listening.” But he adds: “I think they have a tough time putting actions into place.”
Roughly a third of GM dealers said their factory relations deteriorated last year.
The responses of Japan 3 dealers were virtually a mirror image. Six of every seven Toyota, Honda and Nissan dealers called their factory relations great or good. And more than a third said those relations have gotten better in the past year.
“The Asians listen and try to work with the dealers,” says Michael Koufakis, a Toyota dealer in Bayside, N.Y. “It starts with great product. They look at the market, and they build according to demand. They’re not overdealered, and the dealers make money.”
Chrysler, Ford put on the pressure
Three-fifths of dealers surveyed said they are getting the vehicles they want from the factory for their highest-volume brand. But nearly half said the factory is pressuring them to take vehicles they don’t want.
Ford Motor dealers were even more likely to complain of not getting the cars and trucks they want.
More than four-fifths of the Chrysler group dealers surveyed said the company is imposing unwanted vehicles on them.
But Shannon Tedford, new-car manager at Lewis Chrysler-Dodge in Fayetteville, Ark., says he is excited about several of the company’s new vehicles, especially the Dodge Caliber. He says the Chrysler group could gain market share this year at the expense of GM and Ford.
Says Tedford: “This is the year to step on the accelerator, and I see them doing it.”
Whose value?
Among other survey findings:
Three-fourths of dealers said they oppose factories’ efforts to bring sticker prices closer to transaction prices, if that means cutting the dealer discount.GM dealers felt more favorably than the overall sample of dealers about the concept of value pricing. GM reduced list prices last month on 80 percent of its models in an effort to bring them closer to transaction prices. To help finance the price reductions, it cut its dealer discount by 1 to 3 percentage points.
Most dealers who responded to the survey said their highest-volume brand has too many dealerships in their region.Two-thirds of GM, Ford Motor and Chrysler group dealers complained of overdealering. Only a third of Toyota, Honda and Nissan dealers said overdealering is a problem.
Two-thirds of dealers said they saw more upside-down customers last year than they did in 2004. Such customers owe more on their trade-ins than the vehicles are worth.Chrysler group dealers were more likely to identify upside-down customers as a problem than dealers who sell other brands.
Nine out of 10 dealers said good fuel economy is very or somewhat important to their customers.
Greg Migliore contributed to this report
source : autonews
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