Toyota satisfied with number of U.S. dealers
04-28-07, 07:28 AM
#1
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Toyota satisfied with number of U.S. dealers
Toyota satisfied with number of U.S. dealers
Posted Apr 27th 2007 9:36AM by Chris Shunk
Toyota's US sales have been booming for years, with annual volume growth of 10-percent or more the norm, and profits that beat all other automakers, hands-down. One area where Toyota has fought growth, however, is in the quantity of dealers it has in the US, and if you believe North American President Jim Press, that isn't going to change, either.
In an interview with Automotive News, Press underscored how important it is to have profitable dealers, and how adding more dealerships would dilute the investments of Toyota's 1,445 existing stores. In return, Toyota looks for dealers to focus on improving customer satisfaction, and adding investment dollars into their existing infrastructure. Press likened Toyota dealerships as large corporations, with many long time employees and great service departments.
The average Toyota dealership sells over 1,800 vehicles per year, which is about three times as many sales as the typical Ford dealership. We're not surprised that Toyota isn't growing its dealer-base, especially considering the amount of costs domestic automakers are incurring to right-size their sales outlets. It never ceases to amaze us how much discipline Toyota has when it comes to running their uber-successful business.
[Source: Automotive News (subscription req'd)]
Posted Apr 27th 2007 9:36AM by Chris Shunk
Toyota's US sales have been booming for years, with annual volume growth of 10-percent or more the norm, and profits that beat all other automakers, hands-down. One area where Toyota has fought growth, however, is in the quantity of dealers it has in the US, and if you believe North American President Jim Press, that isn't going to change, either.
In an interview with Automotive News, Press underscored how important it is to have profitable dealers, and how adding more dealerships would dilute the investments of Toyota's 1,445 existing stores. In return, Toyota looks for dealers to focus on improving customer satisfaction, and adding investment dollars into their existing infrastructure. Press likened Toyota dealerships as large corporations, with many long time employees and great service departments.
The average Toyota dealership sells over 1,800 vehicles per year, which is about three times as many sales as the typical Ford dealership. We're not surprised that Toyota isn't growing its dealer-base, especially considering the amount of costs domestic automakers are incurring to right-size their sales outlets. It never ceases to amaze us how much discipline Toyota has when it comes to running their uber-successful business.
[Source: Automotive News (subscription req'd)]
04-28-07, 08:06 AM
#3
Lexus Fanatic
Not necessarily just with Toyota, but with the whole auto industry in general, the tendency seems to be for the disappearance of smaller mom-and-pop dealerships and the gathering of more and more of the retail auto sales buisness into big dealership chains owned by large families. Longo Toyota and Lexus, in CA, are good examples, and well-known ones here on CL.
In my part of the country, the D.C area (the second-largest new car market in the country outside SoCal), good examples are the big dealership chains belonging to the Koons, Fitzgerald, Rosenthal, Coleman, Ourisman, Stohlman, and Brown families. Each one of these chains may have literally dozens of dealerships (often huge in size) and sell dozens of different brands of vehicles. The smaller dealerships are rapidly disappearing.
Koons Tysons Toyota, for example, is enormous.....one of the largest in the country. That place has to be seen to believed.
In my part of the country, the D.C area (the second-largest new car market in the country outside SoCal), good examples are the big dealership chains belonging to the Koons, Fitzgerald, Rosenthal, Coleman, Ourisman, Stohlman, and Brown families. Each one of these chains may have literally dozens of dealerships (often huge in size) and sell dozens of different brands of vehicles. The smaller dealerships are rapidly disappearing.
Koons Tysons Toyota, for example, is enormous.....one of the largest in the country. That place has to be seen to believed.
04-28-07, 09:07 AM
#4
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This is a great idea. Instead of trying to focus on quantity of dealers to achieve more sales, Toyota is focusing on the quality of *each dealer*, so good customer satisfaction and a unique dealership experience is what will attract more customers. Plus, Toyota's dealer ratings will go up.
04-28-07, 10:48 AM
#5
Super Moderator
Not necessarily just with Toyota, but with the whole auto industry in general, the tendency seems to be for the disappearance of smaller mom-and-pop dealerships and the gathering of more and more of the retail auto sales buisness into big dealership chains owned by large families. Longo Toyota and Lexus, in CA, are good examples, and well-known ones here on CL.
In my part of the country, the D.C area (the second-largest new car market in the country outside SoCal), good examples are the big dealership chains belonging to the Koons, Fitzgerald, Rosenthal, Coleman, Ourisman, Stohlman, and Brown families. Each one of these chains may have literally dozens of dealerships (often huge in size) and sell dozens of different brands of vehicles. The smaller dealerships are rapidly disappearing.
Koons Tysons Toyota, for example, is enormous.....one of the largest in the country. That place has to be seen to believed.
In my part of the country, the D.C area (the second-largest new car market in the country outside SoCal), good examples are the big dealership chains belonging to the Koons, Fitzgerald, Rosenthal, Coleman, Ourisman, Stohlman, and Brown families. Each one of these chains may have literally dozens of dealerships (often huge in size) and sell dozens of different brands of vehicles. The smaller dealerships are rapidly disappearing.
Koons Tysons Toyota, for example, is enormous.....one of the largest in the country. That place has to be seen to believed.
04-28-07, 11:26 AM
#6
Lexus Fanatic
But it is actually leasing, more so than buying, that keeps a lot of luxury-car dealers in buisness...here as well as elsewhere. People can often get more car for their $$$ by leasing instead of buying, especially if they don't drive a lot of miles, are easy on their cars, and take care of them.
Last edited by mmarshall; 04-28-07 at 11:30 AM.
04-28-07, 04:23 PM
#7
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04-28-07, 06:01 PM
#8
Lexus Connoisseur
That's a nice looking dealership. North Park Toyota is located just Northwest outside of San Antonio in a suburb called Boerne. It's about time they opened a Toyota dealer there. North Park also owns a host of other dealerships in San Antonio including Lexus of San Antonio.
04-30-07, 06:21 PM
#9
Lexus Champion
That's a nice looking dealership. North Park Toyota is located just Northwest outside of San Antonio in a suburb called Boerne. It's about time they opened a Toyota dealer there. North Park also owns a host of other dealerships in San Antonio including Lexus of San Antonio.
Another reason Toyota doesn't want to expand the number of dealerships is they are devilishly hard to get rid of. Once a dealer has a franchise they can't be terminated easily. When GM axed Oldsmobile it cost a lot of money to compensate the franchisees. So GM struggles with Pontiac and Buick, two brands that have lost all sense of worth in the marketplace. They should be shuttered, but GM probably can't afford the cash drain. The same thing occurs with Ford, they have way too many mediocre dealers selling too few cars. Take a look at the number of Ford or Chevy dealers in a large metropolitan area; there is huge number to choose from. Not so with the Japanese labels.
04-30-07, 08:10 PM
#10
Lexus Fanatic
Don't sell Buick short. They have an enormously loyal and widespread core of customers, and guess what? Surprise.....they aren't all Grandpas or Grandmas, either, contrary to popular "image".
04-30-07, 08:46 PM
#11
Lexus Champion
If you asked me to drive directly to the nearest Buick dealer for a million dollars I could not honestly do that. I have no idea where my closest Buick dealer is.
I was reading the other day that the Big 3 know they have lost the Boomer Generation ..... their hope is the young people growing up now who have no history with their schlocky past product. Maybe that will work, but you have to have product that is current and relative to the younger set. Why didn't GM develop a Scion-like vehicle, Mini, Beetle? The only breakthrough was Chrysler's PT Cruiser, but that was a long time ago.
Last edited by Evitzee; 04-30-07 at 08:56 PM.
04-30-07, 09:36 PM
#12
Lexus Fanatic
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I've no problem with Toyota not adding dealerships but in FL at least there aren't enough Lexus dealerships. I sold my Lexus partially because the nearest dealer is 90 miles away. And I don't live in a hick town, we have Porsche, BMW, Cadillac, and other big name dealers here.
04-30-07, 09:37 PM
#13
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04-30-07, 09:41 PM
#14
Lexus Champion
I believe that is correct. So what do the Chinese see in the Buick name? I believe it is probably some sort of romantic image of America in the 50's & 60's while they were getting hammered by Chairman Mao and Company. I wouldn't read too much into that statistic.
05-01-07, 03:20 AM
#15
Lexus Fanatic
If you asked me to drive directly to the nearest Buick dealer for a million dollars I could not honestly do that. I have no idea where my closest Buick dealer is.
Last edited by mmarshall; 05-01-07 at 03:23 AM.