Big Three not popular with their dealers
A survey of auto
dealers by investment analysts shows that U.S. automakers are losing the support of their retail channel.The Big Three are losing ground with retailers on all sides, including sales expectations, brand desirability, and projected investments in dealerships. On the other side of the coin, Japanese automakers have continued to improve their reputations among auto dealers. Rapid introduction of fresh, new product is seen as a particular strength of the overseas brands.
The survey results showed Toyota as the brand dealers would most like to sell, followed by Nissan and Honda. Saturn was the highest placed U.S. brand, with a fourth place ranking. Ford placed last in the list of 20 brands. The Lincoln/Mercury dealer network that Mark Fields referred to this morning as "the envy of the world" (see our liveblog of Ford's "Way Forward" announcement), placed 18th. Complete results here.
Reader Comments (Page 1 of 1)
Gomer Pyle 3:11PM (1/23/2006)
"The Big Three are losing ground with retailers on all sides, including sales expectations, brand desirability, and projected investments in dealerships."
I wonder if these dealers are aware that their own crappy service contributes, to an extent, to the loss in "brand desirability."
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djSyndrome 3:16PM (1/23/2006)
"Saturn was the highest placed U.S. brand, with a fourth place ranking. "
I would guess that this is more of a function of Saturn's no-haggle pricing (and near-guaranteed margins) than their exciting product lineup. Hopefully the Sky and Aura can inject some life into Saturn; I'd hate to see them dropped by GM in favor of keeping a brand like Buick alive.
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jrhmobile 3:46PM (1/23/2006)
Maybe the Big 2 should "fix" this problem by cutting out its dealer network and going to a direct sales model. Oh, wait -- the dealer lobby has locked itself into the game through legislation.
Methinks they doth protest too much. A lot of the problems Detroit has with consumer satisfaction can be laid at the feet of its dealer base.
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Lithous 4:19PM (1/23/2006)
I agree that the no haggle does give Saturn an advantage over other American divisions but it is also interesting that Saturn is above BMW, Acura, and MB just to name a few and they should get some credit. GM has NEARLY all it's U.S. divisions above every other U.S. division of the other domestic and former domestic.
Where's Lexus, Infiniti, Scion, Jeep and Hyundai just to name some of the missing?
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Lithous 4:44PM (1/23/2006)
There is no Big 2 ...
This is a company that has two headquarter countries listed: http://money.cnn.com/magazines/fortune/global500/snapshots/1483.html (Britain/Netherlands)
This is a company that has one headquarter country listed:
http://money.cnn.com/magazines/fortune/global500/snapshots/395.html (Germany)
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Sean Flanagan 4:49PM (1/23/2006)
I think the bigger news here is that Subaru came in at #7 after previously being ranked outside the top 20.
It's no surprise to me that with GM and Ford doing their "employee pricing" schemes and now GM doing their "value pricing", they have lost popularity among their own dealer network. They're lowering profit margins.
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Scott 7:35PM (1/23/2006)
Let the dealers switch from GM and Ford to Japanese brands, that's what they absolutely need. If they could shed dealers then each dealer remaing would be far more profitable than they are today. When Toyota is selling almost as many vehicles w/ one quarter or one fifth as many dealers, of course their dealers are going to be more profitable and more satisfied. Who wouldn't be????
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ted 9:13PM (1/23/2006)
". Let the dealers switch from GM and Ford to Japanese brands, that's what they absolutely need. If they could shed dealers then each dealer remaing would be far more profitable than they are today. When Toyota is selling almost as many vehicles w/ one quarter or one fifth as many dealers, of course their dealers are going to be more profitable and more satisfied. Who wouldn't be????"
Scott hit the nail on the head right there. The biggest problems domestic dealers face are too many dealers too close together. This network was built when the big 3 sold 65% of the cars in the US. They all recognize that plant closings are nescessary, but so are dealer closings if the rest are to remain viable businesses.
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shame 10:52PM (1/23/2006)
Big Three Not Popular With Their Customers
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Steve B. 1:24AM (1/24/2006)
That's funny Lithous:
DaimerChrysler and Honda are on the same page these days.
Fill in the blanks with each...
______ is a large automaker based in an overseas nation.
______ is headed by a citizen of its HQ's home nation.
______ has a large American branch, with market specific design decisions as well as unique North American engines and vehicles.
______ has a better understanding of how to sell and profit in North America than N.A. based automakers.
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s 9:59AM (1/24/2006)
I want to know how is Lincoln/Mercury the "envy of the world" ????
Wouldn't the envy of the world be the best seller among luxury vehicle sales, quality, reliability, etc.
Lincoln/Mercury is none of that.
What is Ford.... the messiah?
Ford is full of sh*t as always.
GO HONDA!
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Phil 1:56PM (1/24/2006)
I own lexus, toyota, and nissan dealerships, and I find it very surprising that lexus is not on this list. My lexus dealership makes multiple times more profit than the toyota dealership; in fact, I am in the process of beginning another lexus franchise.
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