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All the main automotive dealerships agree on the fact that there is a serious shortage of automotive technicians able to work on today's advanced cars and trucks. In this situation analysts and experts say that simply recruiting more technicians won't help. The emerging gap between the lost and the recruited technicians is considerable. Ford and GM estimate a need for a total of 15,000 new technicians for their U.S. dealerships over the next five years. The North American shortfall is estimated by Mark Davis, automotive programs manager at Seminole State C...
Rumors of a dealer class action against Volkswagen have swirled for months, and we have already mentioned about this in one of our previous blogs. But now, a prominent dealer attorney, Leonard Bellavia of Mineola, N.Y., declared he is prepared to file a lawsuit against Volkswagen on behalf of U.S. dealers who supported financial damage after VW’s emissions scandal.The attorney declined to identify his clients, but he mentioned that whether the lawsuit is filed depends on whether the company can reach a settlement with dealers that compensates them fairly for the finan...
After the first quarter of the year is over, many dealers nationwide note that new vehicles sales stagnated and this makes them search for steps to protect profits in case the market slows or slides.The 2008-09 recession taught a lot of things the car dealing companies, and it is hard to imagine that people didn't become really knowledgeable during that time on what to do and how to adjust when downturns take place. After Mike Jackson, AutoNation Inc. CEO, saw new-vehicle sales slowing at AutoNation's 254 stores in the fourth quarter of 2015, he warned of a sa...
Several Illinois dealerships have recently filed a civil racketeering lawsuit alleging FCA paid dealers to improperly inflate sales. Fiat Chrysler reacted saying that the allegations are “baseless” and represent an attempt to “publicly smear” the automaker.FCA used a legal salvo for the first time since dealerships owned by the Napleton Automotive Group filed a suit on Jan. 12. FCA seeks to have the Napleton dealerships’ suit dismissed entirely, saying it is “replete with conclusory allegations, substitutes vitriol for plausibil...
Last week, during a meeting concerning the company’s U.S. strategy, with the VW AG executives in Germany, Volkswagen’s U.S. dealers required reparations from the automaker for financial damages caused by the company's emissions violations.Though it is too early to discuss the size of any settlement so soon after pitching the proposal, it is evident that a special strategy for how Volkswagen is going to approach the dealer network on franchise damages, is needed. The prospect of reparations will be among the pressing topics to be addr...