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Report: Volvo dealers pushing for V40 in America [w/poll]

Filed under: Car Buying, Wagon, Volvo

Volvo V40

Not too long ago, Volvo effectively replaced three models with one. Those were the C30, S40 and V50, and their replacement came in the form of the V40. While its predecessors were available (at some point, anyway) in North America, the V40 isn’t. And that’s something that Volvo’s players in the US would like to change.

According to Automotive News, both Volvo Cars of North America and its dealers are pressing the factory to reverse its decision and prepare the V40 for an American assault on the likes of the Volkswagen Golf and Audi A3. It’s a game they won before with the current V60, which hasn’t been available here, but is set to make the transatlantic voyage come the start of the new year.

This time, though, Volvo Cars of North America may have a bigger fight on its hands, because the V40 wasn’t designed to meet US regulations. Getting it up to spec, then, may be a bigger challenge than it’s worth. But if the American importer and dealer network makes its voice heard, the V40’s replacement could be designed with US regulations in mind.

What do you think? Does the V40 have a place in America? Cast your vote in our poll below.

View Poll

Volvo dealers pushing for V40 in America [w/poll] originally appeared on Autoblog on Mon, 26 Aug 2013 14:20:00 EST. Please see our terms for use of feeds.

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NY dealers try to make it illegal to register a Tesla EV

Filed under: EV/Plug-in, Green Culture, Tesla Motors

Following his big battery swap reveal in California Thursday night, Tesla CEO Elon Musk is turning his eye to New York. That’s where a new tactic by the local auto dealers could put a damper on Tesla’s electric-vehicle success story.

“Just heard that NY auto dealers are sneaking through a bill to shut down Tesla in NY” – Elon Musk

Specifically, Green Car Reports says, there are two nearly identical bills being stealthily moved through the New York state legislature (Assembly bill A07844 and State bill S05725) that would prohibit the state from registering any vehicles that had not been sold through an independent third party (i.e., a dealer). The move prompted Musk to Tweet, “Just heard that NY auto dealers are sneaking through a bill to shut down Tesla in NY. Please call your state senator!” He later sent out, “NY Assembly passing bill to shut down Tesla, but Senate holding the line. Appreciate senators resisting influence of auto dealer lobby.”

It’s the latest round in a fight that started when the state dealers filed a suit against Tesla’s dealer-free sales method in late 2012. The New York Supreme Court ruled earlier this year that the dealers could not use the Franchised Dealer Act as a reason to sue competitors. The New York State Automobile Dealers Association has a letter (PDF) claiming the support of out-of-state groups like the Alliance of Automotive Manufacturers and the Global Alliance of Manufacturers. Tesla currently has two stores in New York, in Queens and White Plains, and one more planned (in Long Island).

That outside support makes sense, since Tesla is embroiled in a struggle with dealers in other states (Massachusetts and Texas come to mind). Nationwide, dealers are putting up quite a fight against Tesla, which makes sense when you realize the automaker is the first to give them this much of a challenge before, at least in recent memory. Since Musk has talked about taking the dealer fight national, we don’t think this is the last we’ll hear of this story.

NY dealers try to make it illegal to register a Tesla EV originally appeared on Autoblog Green on Sat, 22 Jun 2013 13:02:00 EST. Please see our terms for use of feeds.

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Report: Angry dealers sue Mahindra

Filed under: Truck, Government/Legal, Work, India

Mahindra Pik Up

Mahindra Pik Up – Click above for high-res image gallery

The dust-up between Indian automaker Mahindra and its jilted would-be American dealers is set to get a little nastier. According to Automotive News, several dealers have joined a lawsuit against their former partner that seeks both a refund for any fees paid to the truckmaker as well as punitive damages. One Jerry Ackerman is at the center of the suit. He paid $450,000 for three Mahindra franchises and now alleges that both Mahindra & Mahindra and Global Vehicles U.S.A. are in breach of contract. Ackerman’s lawsuit is now seeking class action status.

Automotive News reports that the lawsuit could eventually represent as many as 350 dealers who signed up for franchises in the States. So far, around 45 dealers have shown interest in joining Ackerman’s effort. Meanwhile, another 70 dealers recently met in Atlanta to discuss potential legal action against Mahindra. That lot has decided to file grievances against Mahindra with individual state motor vehicle agencies.

As you may recall, Mahindra originally contracted with Atlanta-based Global Vehicles U.S.A. to distribute its pickups in America, but later backed out of the deal. That left Global Vehicles U.S.A. and its dealers in a lurch. Global Vehicles U.S.A. initially filed suit against Mahindra but later dropped the effort.

The future prospects of Mahindra’s diesel TR20 and TR40 pickups in North America remains uncertain.

Angry dealers sue Mahindra originally appeared on Autoblog on Mon, 23 May 2011 14:01:00 EST. Please see our terms for use of feeds.

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Mazda dealers in U.S. asked not to order cars from Japan

Filed under: Etc., Japan, Plants/Manufacturing, Mazda

Mazda Emblem

Automotive News is reporting that Mazda has suspended U.S. dealers from ordering vehicles made in Japan. The automaker is apparently preparing to close down plants once more after briefly opening doors after the earthquake and tsunami activity on March 11.

This doesn’t mean that Mazda vehicles are going to dry up overnight, though. The automaker says that the ordering would only cover vehicles to be allocated for May, and that the company has decent vehicle stockpiles for U.S. buyers. As of right now, there’s no indication as to when ordering will resume.

Mazda is reported to have had a 93-day supply of vehicles on dealer lots at the beginning of this month. While that figure is down from a 123-day supply in February, Automotive News says that a 60-day supply is considered normal for the industry. The automaker currently imports the Mazda2, Mazda3, Mazda5, MX-5, RX-8, CX-7, and CX-9 models

[Source: Automotive News – sub. req.]

Mazda dealers in U.S. asked not to order cars from Japan originally appeared on Autoblog on Fri, 25 Mar 2011 18:30:00 EST. Please see our terms for use of feeds.

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Report: Hyundai may be piling on the sales, but dealers aren’t piling on the profits

Filed under: Car Buying, Hyundai, Earnings/Financials

2011 hyundai sonata 2.0t

2011 Hyundai Sonata 2.0T – Click above for high-res image gallery

Hyundai is holding a hot hand with its current lineup. Sales are climbing and perception of the brand is swinging strongly in the right direction. Not everyone is singing just yet, however, because Hyundai dealers are apparently lagging behind the competition in one very important area: profits.

In 2010, the industry-wide average dealer profit was 2.1 percent of total sales. Hyundai has seen its average dealer profit rise over the last few years, but according to Automotive News, it’s still below industry average; last year, Hyundai dealers earned 1.9 percent. On the flip-side, Honda dealers enjoy an average profit of nearly three percent of total sales.

One area where dealers see hefty profits is from the service bays and parts sales. Ford and Chevrolet dealerships might see 85 percent of their overhead costs taken care of by the service department. A typical Hyundai dealer may earn enough to handle 40 percent.

Hyundai dealers also have to contend with shortages of their popular models and weak used-car sales. Yet as more folks buy Hyundai vehicles, the dealers will increase the speed at which they catch up with the competition. More vehicles on the road will lead to a rise in trips to the service bay and parts sold. More used current-generation vehicles will help turn around used-car sales. Hyundai dealers know this, and 85 percent of the nearly 800-strong network is operating in the black.

Gallery: 2011 Hyundai Sonata 2.0T: First Drive

[Source: Automotive News – sub. req.]

Report: Hyundai may be piling on the sales, but dealers aren’t piling on the profits originally appeared on Autoblog on Tue, 22 Mar 2011 16:29:00 EST. Please see our terms for use of feeds.

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How Porsche dealers will order the 918 Spyder

Filed under: Car Buying, Performance, Porsche, Earnings/Financials

Porsche 918 hybrid

Porsche 918 Hybrid – Click above for dealer ordering information

Getting a 918 Spyder out of Porsche’s supercar death-grip is going to take some serious doing. First of all, you have to come up with the $845,000 Porsche is asking for the car in the U.S. and Canada, not including destination charges. Once you’ve gotten over that little hurdle, you’ll need to find a Porsche dealer authorized to sell the 918.

According to Porsche, you can buy a 918 Spyder from any Porsche dealer anywhere in the world, provided they’ve signed a participation agreement with Porsche. Details are few and far between on what that agreement entails. What Porsche is saying, though, is how dealers who sign the agreement will order their cars.

Dealers who want to place an order for a 918 will have to submit an “Allocation Request Form.” Porsche will reply with an “Allocation Response Form,” which tells the dealer whether there’s a car available for them. Once that’s done, the dealer submits an order form, along with a $200,000 down payment. Porsche will respond with a confirmation and an estimated month for production.

The next step is another $200,000 deposit 12 months before the production date. The balance – $445,000 plus shipping, if you’re counting – is due when Porsche says the car is done. Porsche says the car will not be shipped until it has been paid for in full. The reason, apparently, is that it won’t be building any of the hyper-expensive 918s on speculation, and that each car needs to have an owner before it is built.

Despite all that rigamarole, we’ll bet Porsche sells out of these things quickly, even if the production shape is yet to surface. Thanks for the tip, Anon!

Gallery: Porsche 918 Hybrid dealer information

Porsche 918 Hybrid dealer information

Gallery: Porsche 918 Spyder

[Source: Porsche]

How Porsche dealers will order the 918 Spyder originally appeared on Autoblog on Mon, 21 Mar 2011 18:29:00 EST. Please see our terms for use of feeds.

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Report: U.S. car dealers raising prices because of Japan disaster

Filed under: Car Buying, Japan

Tsunami damage

The problems facing automakers in the wake of Japan’s deadly earthquake and the resulting tsunami are already manifesting themselves in the form of higher transaction prices on some Japanese cars, as U.S. dealers show less willingness to negotiate downward from the number on the window sticker, according to an AP report.

Automakers like Toyota, Honda and Nissan all say they have a sufficient supply of vehicles in the U.S. that had already been imported from Japan before the disaster struck. So, if there are still plenty of Japanese cars on Stateside lots, why the hardening prices?

It’s a simple case of supply and demand, explain some dealers polled by The Associated Press. “We’re going to run out of cars. We had five [Prius hybrids] on the ground yesterday, and I don’t know when I’ll get another,” says Dave Conant, owner of a Toyota dealership in San Diego, CA. “The market has shifted pretty quickly and dramatically.”

Of course, some people believe dealerships are just using speculative vehicle shortages to make a few extra bucks. We suspect the truth may be a little bit of both.

[Source: The Associated Press via ABC News | Image: Kiyoshi Ota/Getty]

Report: U.S. car dealers raising prices because of Japan disaster originally appeared on Autoblog on Sat, 19 Mar 2011 15:29:00 EST. Please see our terms for use of feeds.

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American International Automobile Dealers launches ‘What Is An American Car’ website

Filed under: Etc., Plants/Manufacturing

AIADA

The American International Automobile Dealers Association has gone through the trouble of working up an informative website to break down which foreign automakers have a presence here in the land of the free. Even after decades of manufacturing products in the United States, automakers from Europe and Asia are still occasionally confronted with protectionist sentiments. Just look at the spate of vandalism toward Toyota vehicles at this year’s Chicago Auto Show as evidence. As the American economy continues to stumble along and unemployment stays high, it’s possible that the AIADA is attempting to educate the public about exactly what it means to “buy American.”

The site allows you to click through the foreign automakers with American manufacturing facilities to see exactly how many employees each have on the payroll and how long they’ve been on U.S. soil. According to the AIADA’s information, there are 21 “import” vehicle manufacturing plants in U.S. that employ a combined 86,507 workers.

That’s not to say that there aren’t some issues with the data. For example, Suzuki is allowed to claim the same Tennessee manufacturing facility as Nissan since the plant cranks out the Equator pickup alongside the Nissan Frontier. You can check out the full site here. Hat tip to Aiden!

[Source: WhatIsAnAmericanCar]

American International Automobile Dealers launches ‘What Is An American Car’ website originally appeared on Autoblog on Tue, 15 Mar 2011 13:29:00 EST. Please see our terms for use of feeds.

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Report: Ford now has more dealers than Chevy for first time in many years

Filed under: Car Buying, Chevrolet, Ford, GM

2010 was a good year for Ford. The Blue Oval outsold long-time rival Chevrolet by 160,000 units, but that’s not the only area where Ford managed a lead over the Bowtie. Ward’s Automotive reports that the Dearborn automaker ended the year with 47 more U.S. dealerships than its cross-town nemesis. The General lost 372 dealers during 2010, compared to just 61 for Ford.

Both companies shed a lot more dealers when counting all the brands that fall under their respective umbrellas, and both moves have helped helped remaining retail stores increase profits. In fact, Wards claims that sales are up between 38 and 129 percent per store. But given the atrocious 2009 automakers endured, 2010 looked like a dream year despite the fact that sales were still among the lowest in three decades. In all, there are about 17,660 car dealerships in the U.S. spanning all automakers.

[Source: Ward’s Automotive | Image: Paul Sakuma/AP]

Report: Ford now has more dealers than Chevy for first time in many years originally appeared on Autoblog on Tue, 22 Feb 2011 17:33:00 EST. Please see our terms for use of feeds.

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Report: Ford paying dealers to teach MyFord Touch to buyers

Filed under: Car Buying, Technology, Ford, Lincoln

MyFord Touch home screen

MyFord Touch – Click above for high-res image gallery

The Blue Oval’s MyFord Touch infotainment system is a powerful bit of kit, so it’s perhaps understandable that there’s proving to be a fairly substantial learning curve attached to it.

Thus, it’s no surprise that Ford salespeople are spending more time than normal with car buyers to explain how it all works. But as the old sales chestnut says, time is money, so Ford will reportedly compensate its sales force by providing $75 for every vehicle sold with the MyFord Touch system. This also applies to Lincoln models sold with the MyLincoln Touch system. In addition to the $75 MyFord Touch bounty, Ford is also providing $50 for any vehicle sold with Sync. The move by Dearborn is to assure that sales people take the necessary time to teach buyers how to master the system, and thus avoid disgruntled owners.

Despite the lack of a ‘Recomended’ rating from Consumer Reports, Ford is forging full steam ahead with its MyFord Touch system. By 2015, the automaker plans to make it available on 80 percent of its lineup.

Gallery: MyFord and MyLincoln Touch

[Source: Detroit Free Press]

Report: Ford paying dealers to teach MyFord Touch to buyers originally appeared on Autoblog on Mon, 14 Feb 2011 13:01:00 EST. Please see our terms for use of feeds.

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