General Motors just announced it would re-enter the medium-duty truck segment – which it exited in 2009 — with the 2019 Chevrolet Silverado. Meanwhile, Ford announced that it would only offer two car models in the U.S. market in the future, the Mustang and a Focus hatchback.
GM’s decision to re-enter the medium-duty truck segment is more a function of a stronger U.S. economy since those models are primarily used for commercial purposes. Still, there are also whispers that GM will trim its car model offerings, as well.
While cars aren’t selling that well in the U.S. these days, I can’t help but think a reduction in the types of vehicles dealerships offer clients is a negative trend. I assume the import brands will continue to offer sedans and other car models as there will still be a market for such albeit a shrinking one.
Will the U.S. automakers devolve into truck makers (including SUVs of course)? If they stop producing cars, will CUVs increase in price since the platforms won’t offer the same economies of scale as in the past? Or will CUVs go the way of cars? Perhaps they are leaving a gap for Chinese automakers to fill….
Enough speculation. Dealership owners often have very a comfortable life style, and so long as their business supports it some owners don’t see the need to make many changes. Other dealer principals aim to make their dealership or dealerships the best businesses possible, including evolving the way they operate. In this issue, our friends at Key Private Bank examine the impact of those choices when the time to sell a dealership arrives.
I have encountered different attitudes towards facility image programs among the dealers I have interviewed, but I think I’m on safe ground when I say that in general facility requirements are disliked. Whether you love ‘em, hate ‘em, or just accept image programs, they aren’t going away.
In this issue, DHG Dealerships examines tax treatment of factory image programs. Knowing how to account for such programs is important if you are buying or selling a dealership facing an upgrade.
And … Transaction News!
Enjoy!
