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Micro and Macro Don’t Mix
Jan 1, 2010

Last month, I recommended that dealers look beyond the monthly cycle reporting. This month, I’ll tell how to do that.

Get Past the Monthly Cycle
December 1, 2009

Ask dealers how business is, and most likely they will respond by telling you how they did last month or how they are currently doing this month.

If You Really Want Out Now
November 1, 2009

While a number of good dealers would like to exit the industry, the current market conditions are less than ideal. It may be at least two years before the dealership transactional market returns to acceptable levels.

Celebrate? Well, Just a Bit
October 1, 2009

Despite welcome positive signs the recession may be ending, dealers should not become lured into a false sense of economic security.

Recognize, Take Good Advice
September 1, 2009

Dealers who have been through either the purchase or sale of a dealership know the stresses associated with executing that.

Beware of Brave New World
August 1, 2009

Newer, smaller and more innovative automotive companies are emerging.

The early success of many of them will fuel speculation and capital investment into current and future automotive start-ups, under the belief that the traditional retail automotive network and its manufacturers are obsolete, and that these newer, leaner, edgier companies are the way of the future.

What Do Dumped Dealer Do?
July 1, 2009

Some terminated General Motors and Chrysler dealers are not ready to simply hang it up and quit. Some have the ability to move forward and continue operations with other franchises they own.

Will the Other Shoe Drop?
June 1, 2009

While the actions taken by Chrysler and General Motors to reduce their dealer counts are necessary for purely competitive reasons, the costs associated with these actions will extend far beyond those dealerships targeted to be closed.

Some Dealer Groups at Risk
May 1, 2009

Select dealer groups that grew aggressively over the last three years are facing potentially devastating challenges in the current economic crisis.

So-So Performers At Risk
April 1, 2009

The automotive retail landscape has become quite crowded.

Not long ago new franchises were available to anyone with a strong desire and a decent business plan, sometimes regardless of automotive experience or proven track record.

Often It's Not the Economy
March 1, 2009

It may be surprising, but the likely reasons some dealers may not survive are only tangentially related to the economic crisis.

Often, a dealer’s failure will have more to do with internal management than with external factors. The economy did not put Bill Heard dealership group out of business. Management did that.

Tips for Buying Dealerships
February 1, 2009

If you’re in the market to purchase a dealership and have been sitting on the sidelines waiting for the market to bottom out, the next 90 to 120 days may yield some of the best buying opportunities that we will see for a long time. The key to making a good acquisition in this markets to be emotionally and financially disciplined.

A New Deal for Auto Dealers
January 1, 2009

Over the course of the last several months, there has been a great deal of debate about the nature and amount of any federal assistance for auto makers, with tense discussions focusing on sources of funding, terms of financial aid, and plans for restructuring and future success.

Life Boat Is Getting Crowded
December 1, 2008

As domestic auto makers and banks position for seats on the life boat, dealers don’t even have a lifeline.

American auto companies don’t believe their survival is through its current dealer network. Each of them thinks its long-term success is based on a greatly reduced domestic dealer body.

Adapt, Improvise, Overcome
November 1, 2008

An estimated 1,000 dealerships will close this year, primarily due to the economic crisis gripping our nation. That means roughly one of every 20 dealerships may close its doors. If you are a domestic dealer, your odds are even less favorable.

Patience is a Virtue
October 1, 2008

With the sharp downturn in vehicle sales, dealers (both foreign and domestic) have watched the value of their stores decline.

So what does this trend mean if you’re looking to buy or sell in the near future?

Batten Down Those Hatches
September 1, 2008

If you own a dealership selling one of the Detroit 3 brands, you might be thinking the franchise is worthless.

If you believe everything you hear, all you should expect to receive from the sale of your dealership is the value of the real estate and cost of your assets. The value of the “goodwill” or “blue sky” for domestic dealers seemingly is nil.