Surviving Auto Dealers Riding High

BUT FIRST SNIDE'S REMARKS: I have been covering the auto dealers convention (NADA) for almost 20 years. This year the meeting was in Orlando and I can report to you that there were lots of SMILES on the expo floor.

As usual, my benchmark on how the auto industry is doing is always whether there is participation of airplane manufacturer exhibitors at the NADA...

Kind of like when Puxatony Phil predicts an early or late spring. Well this year I can happily report that the auto dealers did see airplanes on their expo show floor, both Piper and Eclipse were getting the attention of the once again “flush” car dealers...indicating a predicted upturn of the fortunes of your local car dealers...

Oh yeah by the way I was told by a airplane sales rep that our U.S. tax code allows a purchaser of a multi million dollar plane to immediately take 67% of its cost right off the purchasers bottom line tax obligations...Talk about corporate welfare.

Washington DC February 11, 2013, The AIADA newsletter reportted that the Detroit News wrote that some automakers plan to add new-car dealerships in 2013, including Kia Motors America, which expects to add 10, and Volkswagen Group of America Inc., which plans to add more than 15. Other car companies aren't increasing dealership numbers, but they are helping dealers improve facilities to retain loyal customers and gain new ones.

Automakers from Chrysler to American Honda Motor Co. Inc. and Toyota Motor Sales U.S.A. Inc. have facility upgrade programs. Many of those programs have been in progress for several years.

Volkswagen, which has more than 600 VW dealers and more than 250 Audi dealers, said it plans to complete 45 modernist "White Frame" facilities this year. Some are new construction, others are renovated dealerships. More are in the pipeline for next year. More than 100 Volkswagen dealers are spending $450 million on renovations from 2011 to 2013, while Audi dealers are spending $206 million on renovations from 2009 to 2013.

Click here for more on the positive climate for today’s auto dealers.