GW Blog

Dealership performance and RSI in NY's Beck vs General Motors Case

GNYADA reported that its dealers have recently received a letter from GM that the manufacturer is attempting to modify its sales performance measurement following the NY Court of Appeals decicion in Beck vs General Motors.  The GNYADA dealer bulletin includes the following guidance for GM dealers: 

Automotive Sales volumes hold steady - Good sign for dealerships

Ford F150 sales surge 29% in June

Auto sales for the first half of 2016 finished up 1.4% from 2015, a sign that the US auto industry is halfway to another record, just barely, according to a recent article in Automotive News.  Most manufacturers posted slight increases.  In June, Chevrolet's sales were up 0.1% and Hyundai's just 0.01% or only 9 vehicles.  "That might be the name of the game for the rest of the year", said Akshay Anand of Kelley Blue Book.

Dealer Attitude Survey: Does it impact Dealership Valuations

NADA has published their recent semiannual Dealer Attitude Survey.  Lexus, Toyota and Subaru have achieved top overall scores.  Any surprises?  Lexus has retained the top overall spot for the past six surveys (three years)! And has scored in the top 5 throughout the last 6 years.  Survey results definitely influence the Blue Sky multiple that acquired dealerships receive.  

 

Brexit and the Automotive Industry

Brexit and the Automotive Industry

DOUBLE OUCH! That's the sound of my 401K after yesterday's historic vote in the UK to leave the European Union.  Much has been written around the world about its impact by all kinds of political and financial pundits, so no need to repeat that here.  However, what about our automotive industry?  The last ten years have seen a resurgence in British car manufacturing, albeit most car makers are now owned by foreign companies. So will Brexit have an impact on the British automotive industry?  

Some great insights from our friends across the pond:

Strong Auto Sales in 2016: Barra

In an interview on CNBC, GM CEO Mary Barra said that she expects auto sales to remain strong in 2016, exceeding 17 million.  This is great news that bodes well for those auto dealerships for sale.  

Must know auto dealership news: Are you ready for autonomous cars?

We've all followed the stories on autonomous vehicle development.  Now, the NHTSA is getting ready to release new guidelines. Stay tuned.

Automotive Dealership Succession Planning, Pt 2

A Tale of Two Succession Plans

 

In our last blog post I shared with you a true story about automotive dealership succession planning, which, did not turn out well. As I mentioned, I’ve seen many types of successful, and unfortunately, unsuccessful, succession planning over the course of my 35+ years as a broker for New England auto dealerships. Today, I’d like to share with you another true tale of succession planning--and this one has a much better ending!

Automotive Dealership Succession Planning, Pt 1

A Tale of Two Succession Plans

Automotive dealership succession planning is something many dealers think about, but sadly, some just do not get around to actually creating a documented plan.  In my 35+ years of brokering automotive dealerships in New England, I’ve seen succession planning (and lack thereof) play out in a number of ways. But rather than tell you all the reasons why you should create a succession plan (now!) for your dealership, by example I'll tell you two true stories from my extensive career.

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