New Car Dealers Support Modern Facilities but Question Case for Factory Programs
LAS VEGAS (Feb. 4, 2012) – While new-car dealers see value in having clean and modern facilities, many have questions and, in a significant number of cases, are not convinced that the factory upgrades they are being asked to do will result in an increased return on investment, according to a new study by Glenn Mercer issued today at a press briefing during the 2012 NADA Convention and Expo in Las Vegas. (Watch the video)
Glenn Mercer |
“These programs – intended to encourage dealers to invest in store expansion, modernization and standardization – can place significant financial burdens on dealers, yet there is little hard evidence on the return of investment this spending might yield,” Mercer said.
In response to dealer concerns, NADA commissioned last August the “Factory Image Programs” study to provide an objective, unbiased and neutral analysis of the various factors that drive the economics of facility programs.
“The NADA research project brought all the various perspectives on this issue out into the open by speaking with a wide range of industry participants,” Mercer added. “Our goal was to open up a dialog in which all parties could discuss facility requirements on a more rational, informed and fact-driven footing.”
Based on numerous interviews and discussions with automaker executives and a diverse selection of dealers, recommendations were provided to both parties, such as working together to reduce some of the tensions that exist over these issues.
For more information, contact:
David Hyatt
Vice President
NADA Public Affairs
(202) 281-4550 (mobile)
(703) 821-7120 (office)
dhyatt@nada.org C
harles Cyrill
Public Relations Director
NADA Public Affairs
(703) 821-7121 (office)
(216) 870-8837 (mobile)
ccyrill@nada.org