NADA Studies the Impact of Factory-Mandated Dealership Renovation Programs
NADA launched its research project on Factory Image Programs in August 2011 in response to numerous communications from NADA members expressing concern and frustration about how factory facility programs were both designed and executed.
NADA members knew that the amount they spend on factory-mandated facility upgrades can run to billions of dollars annually, and that such investments have a significant impact on their overall finances. In many cases, the financial burden severely strains dealer resources, and in some cases it resulted in dealers leaving the business altogether.
When NADA researchers first began investigating factory facility programs, they were surprised to find that little hard evidence existed as to the return on investment (ROI) in facilities, either to the OEM or to the dealer — not to mention the customer. As a result, facility investment decisions are often based on subjective factors such as opinions, assertions and anecdotes and not hard data.
Download the study (two parts):