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A VW Franchise: Once a license to print money...

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  • A VW Franchise: Once a license to print money...

    ....but look at today's reality, the second topic in this Automotive News daily blog:

    http://www.autonews.com/article/2016...autonews-annow

    Yikes! BP
    We've got to quit saying, "How stupid can you be?" Too many people are taking it as a challenge.

    Ayn Rand:
    "You can avoid reality, but you cannot avoid the consequences of avoiding reality."

    G. K. Chesterton: This triangle of truisms, of father, mother, and child, cannot be destroyed; it can only destroy those civilizations which disregard it.

  • #2
    Maybe the can become Peugeot/Citroen dealers, according to the next announcement.

    Craig

    Comment


    • #3
      I was hoping they would go bankrupt. It would teach them right.

      Comment


      • #4
        It IS a little ironic that a company whose advertising was so self-righteous about their green credentials got caught cheating on emissions.
        Skip Lackie

        Comment


        • #5
          Originally posted by Skip Lackie View Post
          It IS a little ironic that a company whose advertising was so self-righteous about their green credentials got caught cheating on emissions.
          Not to mention VW being the car of the 60s hippie counterculture, Skip, in either bug or van configuration. BP
          We've got to quit saying, "How stupid can you be?" Too many people are taking it as a challenge.

          Ayn Rand:
          "You can avoid reality, but you cannot avoid the consequences of avoiding reality."

          G. K. Chesterton: This triangle of truisms, of father, mother, and child, cannot be destroyed; it can only destroy those civilizations which disregard it.

          Comment


          • #6
            I'm really amazed that the didn't get spanked to the point of struggling to survive.
            They deserve it, even after they play stupid.

            Did I missed something or did they just get their hand slapped and move on?

            Dean.

            Comment


            • #7
              Originally posted by dean pearson View Post
              Did I missed something or did they just get their hand slapped and move on? Dean.
              Heavens no, Dean; they are in deep do-do and it is far from over.

              Their dealers are in near revolt. Watch the video. The gist of it is that the dealers invested heavily in new and upgraded facilities when VW announced awhile back that they are planning for annual sales over 800,000 units. So far, they've managed less than half that and the dealers are screaming because they can't sell enough cars to pay for their improvements...all the while legal jurisdictions around the world continue to file lawsuits and such.

              "It ain't over until it's over." BP
              We've got to quit saying, "How stupid can you be?" Too many people are taking it as a challenge.

              Ayn Rand:
              "You can avoid reality, but you cannot avoid the consequences of avoiding reality."

              G. K. Chesterton: This triangle of truisms, of father, mother, and child, cannot be destroyed; it can only destroy those civilizations which disregard it.

              Comment


              • #8
                Our local VW dealer was selling used cars out of an old gas station when he took a gamble on VW back in the 50's. He built a string of dealerships and made millions in the 50's, 60's and 70's.

                Unfortunately the same personality quirk that made him take the gamble on VW led him to believe that just because he got lucky once he would get lucky again. He invested in a never-ending series of bad investments--there were the Minnesota Fats pool hall franchises, the airplane dealership, the vending machine business, and the fast food restaurants. Those are just what I remember off the top of my head, and we're not even going to talk about the oil wells (all dry wells), the penny stocks, and 101 other dog investments. He never lost faith in VW though, and he was always convinced the next big thing was right around the corner.

                Maybe that's the mindset you need to have to be a car dealer? I was looking through old newspapers the other day, and it's amazing how quickly they come and go.
                ?Wanted: Power Steering Parts for a 60 Lark.

                Comment


                • #9
                  That's been going on for years and years...and with all the brands...
                  Nothing new.
                  HTIH (Hope The Info Helps)

                  Jeff


                  Get your facts first, and then you can distort them as much as you please. Mark Twain



                  Note: SDC# 070190 (and earlier...)

                  Comment


                  • #10
                    Originally posted by BobPalma View Post
                    Heavens no, Dean; they are in deep do-do and it is far from over.

                    Their dealers are in near revolt. Watch the video. The gist of it is that the dealers invested heavily in new and upgraded facilities when VW announced awhile back that they are planning for annual sales over 800,000 units. So far, they've managed less than half that and the dealers are screaming because they can't sell enough cars to pay for their improvements...all the while legal jurisdictions around the world continue to file lawsuits and such.

                    "It ain't over until it's over." BP

                    A dealer not far from me added VW as a brand several years back. Before VW would grant them a franchise, they were required to build a completely new and separate addition to the dealership and service dedicated exclusively for VW sales. A lot of investment possibly down the drain.
                    Poet...Mystic...Soldier of Fortune. As always...self-absorbed, adversarial, cocky and in general a malcontent.

                    Comment


                    • #11
                      Originally posted by Gunslinger View Post
                      A dealer not far from me added VW as a brand several years back. Before VW would grant them a franchise, they were required to build a completely new and separate addition to the dealership and service dedicated exclusively for VW sales. A lot of investment possibly down the drain.
                      Same thing locally, except it was several other car brands. The local FCA dealer has been expanding and every brand he took on required a separate building. In fact, the local Toyota dealer wanted to add Lexus and they required a separate Building.

                      Secondly, a personal message to those wanting bankruptcy for the offenders, those companies provide jobs in countries including ours, well paying jobs IIRC. Punish the offenders in the company but quit wishing vengeance on those that engineered and constructed the vehicles. Quit that. Bob
                      Last edited by sweetolbob; 03-16-2016, 08:18 AM.
                      , ,

                      Comment


                      • #12
                        Very similar to what the Sterling (former Ford) heavy truck builder did to it's dealership network a few years ago.
                        They forced their dealers to build these new castles to support the Sterling truck brand.
                        Then Sterling (a Daimler company at the time) shut down the Sterling line to concentrate on their other two purchases, Freightliner and Western Star.
                        The Sterling dealers got hosed (if there was a Western Star dealer, or a Freightliner dealer nearby)....
                        Most of them either sold out at a terrible loss, or went with a smaller brand, like Isuzu, Ivecho, or Mitsubishi...


                        http://www.hammertrucks.com/sterling-trucks-3/


                        Originally posted by BobPalma View Post
                        Heavens no, Dean; they are in deep do-do and it is far from over.

                        Their dealers are in near revolt. Watch the video. The gist of it is that the dealers invested heavily in new and upgraded facilities when VW announced awhile back that they are planning for annual sales over 800,000 units. So far, they've managed less than half that and the dealers are screaming because they can't sell enough cars to pay for their improvements...all the while legal jurisdictions around the world continue to file lawsuits and such.

                        "It ain't over until it's over." BP
                        Last edited by DEEPNHOCK; 03-16-2016, 05:06 PM.
                        HTIH (Hope The Info Helps)

                        Jeff


                        Get your facts first, and then you can distort them as much as you please. Mark Twain



                        Note: SDC# 070190 (and earlier...)

                        Comment


                        • #13
                          Back when I was in high school my tenth grade English teacher related that, after he returned from the war in Europe he opened the first VW/Jaguar dealership in North America, thinking it a sound way to make a living. But his passion had always been to teach; so he sold it and went to college. He was an inspiring teacher.
                          "All attempts to 'rise above the issue' are simply an excuse to avoid it profitably." --Dick Gregory

                          Brad Johnson, SDC since 1975, ASC since 1990
                          Pine Grove Mills, Pa.
                          sigpic'33 Rockne 10, '51 Commander Starlight, '53 Commander Starlight "Désirée"

                          Comment


                          • #14
                            VW hasn't been a license to print money since the Mid-70's. In rural areas, that fact can't be more obvious than the count of closed VW dealers, which are as numerous as closed Studebaker dealers in towns under 50K in population. It just happened ten to fifteen years later than Studebaker. Frankly, VW wouldn't even be in the US if Freeman Thomas hadn't been stolen from Ford and Chrysler to design the New Beetle. VW's market share has been even lower than Studebaker's for most of the last 20 years, and their pathetic niche Diesel market share is miniscule. Not a story I'd gamble my life's savings on to represent as a dealer.

                            VW just isn't a player in the US anymore. The New Beetle was like their Lark. The writing is and has been on the wall for a long time. Emissions scandal or not, they just aren't a player in the U.S.

                            Comment


                            • #15
                              Originally posted by 556063 View Post
                              VW hasn't been a license to print money since the Mid-70's.
                              Probably even earlier. VW had a 'dealer uniformity' plan in place years before GM and Ford did; especially in their service department. As I recall, VW had several 'special' tools the dealers had to purchase in order to qualify to work on them, and starting around 1970, they touted those fancy electronic Engine Diagnostic machines for VW's with fuel injection. They were NOT cheap to buy at the time.

                              Craig
                              Last edited by 8E45E; 03-17-2016, 08:19 AM.

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