A New Breed of Investor in Automotive Dealerships

A New Breed of Investor in Automotive Dealerships

September 22, 2014 — A new type of investor in dealerships may provide the comfort level manufacturers require and the flexibility dealers need.    Recently a new breed of investor has been drawn to the business of franchised retail auto dealerships. Included are hedge funds, private-equity funds and family offices. First, what attracts them to automotive…

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Cliff Banks - The Banks Report

Mid-Size Sedan Market Feeling the Pressure

September 15, 2014 — Automotive sales in August far exceeded everyone’s expectations leading to concern that automakers were again relying on aggressive incentives rather than true demand juice showroom traffic. The truth lies somewhere in the middle — but could have far reaching implications for the short term future of  certain market segments, and even,…

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Cliff Banks - The Banks Report

Palmer Leaves Nissan

September 2, 2014 — The management shuffle continues at Renault-Nissan as product chief and executive vice president Andy Palmer leaves to take the CEO position at Aston Martin. Replacing Palmer is Philippe Klein, executive vice president with Renault SA, who starts in his new position on September 15. Palmer is the fourth senior executive to leave…

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Cliff Banks - The Banks Report

Buyers & Sellers Both Hurt by Right of First Refusal

UPDATED — At least ten (updated from eight) cases of manufacturers using the Right of First Refusal since January 2013, including at least three lawsuits, shows dealers wanting to sell their stores and the dealers hoping to acquire need to do their homework up front to know whether it will be an issue. Since we first reported…

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Cliff Banks - The Banks Report

BMW Inflating Sales Again?

TBR has talked to several BMW dealers the last two weeks who say that BMW has been exerting significant pressure on them to engage in a practice commonly known as “punching” sales. According to the dealers, BMW zone officials have been offering anywhere from $1,000 to $3,500 in some cases, to count vehicles as sold,…

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Cliff Banks - The Banks Report

Napleton vs. Jaguar – Another Right of First Refusal Lawsuit

Longtime Illinois dealer Ed Napleton is suing Florida attorney and New York dealer Manuel Kadre; Jaguar Land Rover North America; the Long Island Automotive Group, MMS-HM and their owners, the Marubeni America Corp. It’s another lawsuit resulting from a manufacturer’s exercise of the right of first refusal in which they nix one buyer and bring… Continue Reading

Cliff Banks - The Banks Report

Dealers & Tesla – Political Horse Trading in Jersey?

When the New Jersey Assembly voted last week overwhelmingly to allow Tesla to sell its vehicles directly to consumers it looked like the Jim Appleton led dealer-association had their rear ends handed to them. There had to be more to this story. There is no way New Jersey’s assembly votes 77-0 against the dealers unless Appleton…

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Cliff Banks - The Banks Report

Buyer Beware – Right of First Refusal on the Rise

A couple of days ago, on April 30, Southern Motors Chevrolet filed a lawsuit against General Motors for blocking its purchase of Fuller Chevrolet, located in Rincon, GA. According to dealers and individuals who broker dealership acquisitions one of the more under-reported dynamics of the dealership buy-sell field is the growing willingness on the part…

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