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Found 110 results

  1. William Maley Staff Writer - CheersandGears.com November 13, 2012 The news of Suzuki automobiles leaving the U.S. has left their dealers with a choice, either take a cash settlement or take Suzuki to court. Last week, American Suzuki Motor Corporation was authorized by a U.S. Bankruptcy Court to borrow $45 million dollars as part of a settlement with dealers. The settlement would give dealers a cash settlement, and a new contract giving the dealers the rights to operate as parts and service centers for Suzuki vehicles if the dealers voluntary surrender their agreements with Suzuki. There’s two problems with the settlement. For one, the settlements to be paid out, Suzuki will use dealership sales, rent, vehicles in inventory, and investment in facilities to come up with a amount. This arrangement would cause dealers who didn’t sell that many Suzuki vehicles to get a small amount. Also, dealers who agree with the settlement also agree not to take legal action against Suzuki. Now, Suzuki dealers can decline the settlement and take the company to court to fight for what they are entitled to thanks to state franchise laws. The franchise laws make Suzuki buyback the dealer’s inventory of new vehicles and parts, and provide compensation for for rent, facility, and other costs. There’s a problem with this as well because a dealer’s claim could be just worth pennies on the dollar, especially after Suzuki pays its higher-priority creditors. "If Suzuki had chosen to exit the market and terminate the franchise agreements, it would have been subject to state franchise termination assistance provisions such as buying back vehicle inventory, parts, tools and rent on the dealership facility," said James Moors, NADA's director of franchising and state law. "NADA would be concerned if Suzuki is attempting to use the bankruptcy process to avoid its obligations to its dealers. NADA is reviewing this proposal and believes that Suzuki dealers should not receive less than what they are entitled to under their franchise agreements and applicable state law," Moors went onto say. Source: Automotive News (Subscription Required), 2 William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. Related Stories: Suzuki Vehicles Bid Adieu, Files Chapter 11
  2. William Maley Staff Writer - CheersandGears.com November 13, 2012 The news of Suzuki automobiles leaving the U.S. has left their dealers with a choice, either take a cash settlement or take Suzuki to court. Last week, American Suzuki Motor Corporation was authorized by a U.S. Bankruptcy Court to borrow $45 million dollars as part of a settlement with dealers. The settlement would give dealers a cash settlement, and a new contract giving the dealers the rights to operate as parts and service centers for Suzuki vehicles if the dealers voluntary surrender their agreements with Suzuki. There’s two problems with the settlement. For one, the settlements to be paid out, Suzuki will use dealership sales, rent, vehicles in inventory, and investment in facilities to come up with a amount. This arrangement would cause dealers who didn’t sell that many Suzuki vehicles to get a small amount. Also, dealers who agree with the settlement also agree not to take legal action against Suzuki. Now, Suzuki dealers can decline the settlement and take the company to court to fight for what they are entitled to thanks to state franchise laws. The franchise laws make Suzuki buyback the dealer’s inventory of new vehicles and parts, and provide compensation for for rent, facility, and other costs. There’s a problem with this as well because a dealer’s claim could be just worth pennies on the dollar, especially after Suzuki pays its higher-priority creditors. "If Suzuki had chosen to exit the market and terminate the franchise agreements, it would have been subject to state franchise termination assistance provisions such as buying back vehicle inventory, parts, tools and rent on the dealership facility," said James Moors, NADA's director of franchising and state law. "NADA would be concerned if Suzuki is attempting to use the bankruptcy process to avoid its obligations to its dealers. NADA is reviewing this proposal and believes that Suzuki dealers should not receive less than what they are entitled to under their franchise agreements and applicable state law," Moors went onto say. Source: Automotive News (Subscription Required), 2 William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. Related Stories: Suzuki Vehicles Bid Adieu, Files Chapter 11 View full article
  3. William Maley Staff Writer - CheersandGears.com October 9, 2012 The way Tesla sells their vehicles is very different from other automakers. Their seventeen stores are modeled after the Apple Store; most are in malls for anyone to walk in and look at the vehicles. If you want to order a Tesla, you can do an online reservation. This has drawn the ire of dealers and dealer organizations, which have begun legal efforts to make Tesla's factory stores illegal. Their argument: "Tesla's factory-owned stores present unfair competition for rival dealerships, are inconvenient for consumers needing repairs and, if left unchallenged, ultimately threaten the franchise system," according to a new report from Automotive News. "If a manufacturer sees that Tesla is successful with this kind of business model, who's to say they don't break out their own EV product lines and create a separate system that bypasses dealers? It's extremely problematic," said Bob O'Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association. Four states (Illinois, Massachusetts, New York and Oregon) have complained about Tesla's business practices and are looking to the law to fight it. Other states have brought questions dealing with Tesla's stores. "Tesla may not yet recognize the value of the independent, franchised dealer system, but as its sales increase, NADA is confident it will re-examine its business model. Other companies such as Daewoo did. All companies should be complying with existing laws in the same way dealers are required to," said Montana dealer and NADA Chairman Bill Underriner in a statement. Tesla doesn't see a problem with their stores. "We do what we're capable of doing, and we do whatever they let us do. It's unique for each location. If we can't be a dealer in a mall, we won't do reservations on-site. We tell people where to go on our Web site to make a reservation." said George Blankenship, Tesla's vice president of sales. "We just want to locate in high-traffic locations and interact with people when they are specifically not thinking of buying a car. We have no motivation to change the laws or how the car industry does its business." Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  4. William Maley Staff Writer - CheersandGears.com October 9, 2012 The way Tesla sells their vehicles is very different from other automakers. Their seventeen stores are modeled after the Apple Store; most are in malls for anyone to walk in and look at the vehicles. If you want to order a Tesla, you can do an online reservation. This has drawn the ire of dealers and dealer organizations, which have begun legal efforts to make Tesla's factory stores illegal. Their argument: "Tesla's factory-owned stores present unfair competition for rival dealerships, are inconvenient for consumers needing repairs and, if left unchallenged, ultimately threaten the franchise system," according to a new report from Automotive News. "If a manufacturer sees that Tesla is successful with this kind of business model, who's to say they don't break out their own EV product lines and create a separate system that bypasses dealers? It's extremely problematic," said Bob O'Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association. Four states (Illinois, Massachusetts, New York and Oregon) have complained about Tesla's business practices and are looking to the law to fight it. Other states have brought questions dealing with Tesla's stores. "Tesla may not yet recognize the value of the independent, franchised dealer system, but as its sales increase, NADA is confident it will re-examine its business model. Other companies such as Daewoo did. All companies should be complying with existing laws in the same way dealers are required to," said Montana dealer and NADA Chairman Bill Underriner in a statement. Tesla doesn't see a problem with their stores. "We do what we're capable of doing, and we do whatever they let us do. It's unique for each location. If we can't be a dealer in a mall, we won't do reservations on-site. We tell people where to go on our Web site to make a reservation." said George Blankenship, Tesla's vice president of sales. "We just want to locate in high-traffic locations and interact with people when they are specifically not thinking of buying a car. We have no motivation to change the laws or how the car industry does its business." Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  5. William Maley Staff Writer - CheersandGears.com September 22, 2012 Back in July, SRT CEO Ralph Gilles told Automotive News that around 15 to 20% of the 2,300 Chrysler dealers (about 340 to 460) would be able to sell the Viper. Now, that amount has shrunk. According to USA Today, the amount of dealers that will be able to sell the Viper is now around 5% (100 to 150 dealers). That number comes from Ralph Gilles. All 2,300 Chrysler dealers are being sent a letter outlining what will need to happen for them to sell the Viper. The No. 1 requirement "Is first of all, to have the fire, the passion. That's the unofficial requirement -- that you have a love affair with the cars and you just love fast cars," Gilles said. If you happened to be one of the dealers picked to sell Viper, be prepared to shell out $20,000 as a one time fee. For an extra $5,000, any Chrysler dealer can purchase an agreement for tools, equipment, training, signs and, most importantly, preferential ordering and additional allocation of SRT vehicles. Source: USA Today, Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  6. William Maley Staff Writer - CheersandGears.com September 22, 2012 Back in July, SRT CEO Ralph Gilles told Automotive News that around 15 to 20% of the 2,300 Chrysler dealers (about 340 to 460) would be able to sell the Viper. Now, that amount has shrunk. According to USA Today, the amount of dealers that will be able to sell the Viper is now around 5% (100 to 150 dealers). That number comes from Ralph Gilles. All 2,300 Chrysler dealers are being sent a letter outlining what will need to happen for them to sell the Viper. The No. 1 requirement "Is first of all, to have the fire, the passion. That's the unofficial requirement -- that you have a love affair with the cars and you just love fast cars," Gilles said. If you happened to be one of the dealers picked to sell Viper, be prepared to shell out $20,000 as a one time fee. For an extra $5,000, any Chrysler dealer can purchase an agreement for tools, equipment, training, signs and, most importantly, preferential ordering and additional allocation of SRT vehicles. Source: USA Today, Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  7. William Maley Staff Writer - CheersandGears.com August 14, 2012 A new study conducted by Maritz Research finds that 11.4% of new car buyers are skipping the test drive. The implication for skipping the test drive are due to more consumers doing their research on the internet (8 out of 10 consumers the study found) and the universal dislike of the car sales practice. "I just find it quite fascinating and a little baffling. As cliché as perhaps it sounds, there's that new-car smell that needs to be experienced firsthand and cannot be experienced over the Internet," said Chris Travell, vice president of strategic consulting for Maritz Research. Dealers aren't happy with this news. The test drive is one tactic used to get people excited enough to part with their hard earned cash. "My manager said, 'The feel of the wheel will seal the deal,' " said Philip Reed, a former dealership representative who now serves as senior consumer advice editor for Edmunds.com. The test drive can also tell a potential buyer whether they're making the right decision or not. "Everything that you read isn't necessarily true. There's nothing online that tells you how that car feels. I enforce it with the salespeople that they have to at least offer a test-drive with every customer," said Ken Thomas, general manager of Telegraph Chrysler Dodge Jeep Ram in Taylor, MI. Source: Detroit Free Press William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  8. William Maley Staff Writer - CheersandGears.com August 14, 2012 A new study conducted by Maritz Research finds that 11.4% of new car buyers are skipping the test drive. The implication for skipping the test drive are due to more consumers doing their research on the internet (8 out of 10 consumers the study found) and the universal dislike of the car sales practice. "I just find it quite fascinating and a little baffling. As cliché as perhaps it sounds, there's that new-car smell that needs to be experienced firsthand and cannot be experienced over the Internet," said Chris Travell, vice president of strategic consulting for Maritz Research. Dealers aren't happy with this news. The test drive is one tactic used to get people excited enough to part with their hard earned cash. "My manager said, 'The feel of the wheel will seal the deal,' " said Philip Reed, a former dealership representative who now serves as senior consumer advice editor for Edmunds.com. The test drive can also tell a potential buyer whether they're making the right decision or not. "Everything that you read isn't necessarily true. There's nothing online that tells you how that car feels. I enforce it with the salespeople that they have to at least offer a test-drive with every customer," said Ken Thomas, general manager of Telegraph Chrysler Dodge Jeep Ram in Taylor, MI. Source: Detroit Free Press William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  9. William Maley Staff Writer - CheersandGears.com June 19, 2012 Chrysler has begun taking orders for the new Dodge Dart from their dealers. Hopefully the dealers read the fine print, as there are a couple catches to the new Dart. The first catch is how many Darts each dealer will receive. Chrysler will be rewarding a certain number of Darts to dealerships depending on the number of Dodge Caliber models each dealer sold. Despite Caliber production ending last December, there are still 2,200 Calibers still sitting on dealer lots. Catch number two deals with the first Darts that the dealers will be receiving. Like the first Chevrolet Volts allocated to dealers, the first Darts will be used for demonstration purposes. Chrysler says the demo Darts can be sold once more Darts enter the flow in late July or early August. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  10. William Maley Staff Writer - CheersandGears.com June 19, 2012 Chrysler has begun taking orders for the new Dodge Dart from their dealers. Hopefully the dealers read the fine print, as there are a couple catches to the new Dart. The first catch is how many Darts each dealer will receive. Chrysler will be rewarding a certain number of Darts to dealerships depending on the number of Dodge Caliber models each dealer sold. Despite Caliber production ending last December, there are still 2,200 Calibers still sitting on dealer lots. Catch number two deals with the first Darts that the dealers will be receiving. Like the first Chevrolet Volts allocated to dealers, the first Darts will be used for demonstration purposes. Chrysler says the demo Darts can be sold once more Darts enter the flow in late July or early August. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article

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