Now this is interesting... As we all know Detroit automakers are saddled with too many divisions and too many dealers. It's known that Chrysler will be drastically cutting dealers, and one of many concernsâwhen they put this into action, will they be able to adequately service all the vehicles they sell?What they've come up with is to offer stand-alone Chrysler service facilities. These facilities could well be dealers that have been closed...
Frankly I think this is a great concept.
This concept could benefit all major automakers
If you think about it, it's possible that this concept could be expanded to offering mega-sized service centers, catering to specific brands scattered about any given region. I could easily see GM, Ford, Toyota or any other automaker offering this.
This would relieve the sales dealers of servicing what they sell by not having to purchase service equipment and train/hire service technicians. The sales dealers could pool their resources and become equal owners of these ultra large services facilities, so that they still would benefit from the profits that servicing vehicles brings in.
So in effect, that would free the sales dealers to do nothing but sell vehicles. Anything pertaining to service, be it PDIing vehicles for sale, to any sort of service work, would all be done by these large service facilities.
The sales outlets could take over the existing service facilities, and convert that space into larger showrooms. New yet-to-be-built sales outlets could very easily get by with less acreage, as the space now allocated to service wouldn't be necessary, and thus would be cheaper to buy.
These service facilities would be very large, possibly on a scale approaching a small- to medium-sized shopping center in terms of acreage. Now if they could also offer 24/7 vehicle service, that would be perfect, as a big problem for many customers is finding the time to get their vehicle serviced.
It's something to think about.
Full story here.
This concept could benefit all major automakers
If you think about it, it's possible that this concept could be expanded to offering mega-sized service centers, catering to specific brands scattered about any given region. I could easily see GM, Ford, Toyota or any other automaker offering this.
This would relieve the sales dealers of servicing what they sell by not having to purchase service equipment and train/hire service technicians. The sales dealers could pool their resources and become equal owners of these ultra large services facilities, so that they still would benefit from the profits that servicing vehicles brings in.
So in effect, that would free the sales dealers to do nothing but sell vehicles. Anything pertaining to service, be it PDIing vehicles for sale, to any sort of service work, would all be done by these large service facilities.
The sales outlets could take over the existing service facilities, and convert that space into larger showrooms. New yet-to-be-built sales outlets could very easily get by with less acreage, as the space now allocated to service wouldn't be necessary, and thus would be cheaper to buy.
These service facilities would be very large, possibly on a scale approaching a small- to medium-sized shopping center in terms of acreage. Now if they could also offer 24/7 vehicle service, that would be perfect, as a big problem for many customers is finding the time to get their vehicle serviced.
It's something to think about.
Full story here.
steve_ says:
08:38 AM, 04/19/08
Sounds great. You could convert all the empty Wal-Mart boxes to garages. Next get rid of the sales staff Altogether and let people custom order direct from the factory. The service center could prep the delivered cars and factory reps not on commission could demo cars by appointment.
estreka says:
11:27 AM, 04/19/08
So we're talking about a central service center completely disassociated with sales where each has to keep its own profits up. I don't see how this bodes well. You reduce the number of available mechanics, eliminate any connectivity dealers have with their service staff, and now you're instituting long commutes for customers.
Don't get me wrong, I like the idea of a dedicated service center, but they're going to be thoroughly overburdened with customers. Can you imagine dropping off your BMW X5 for a regular service interval at a center that services the greater Los Angeles area and them telling you that it'll be ready next week?
If you think I'm exaggerating, we have 1 Audi dealership in the entire state of Montana. 1. Not only do you need to make an appointment far in advance (1 week+), but if any actual maintenance is required beyond the obligitory oil change you can expect them to keep it for an additional week as they try to get to it. If Audi tried to do this with all the dealerships in Idaho and Washington state, you'd have to wait, literally, months.
No, I think this is a poor idea.
rsholland says:
02:12 PM, 04/19/08
I don't think it would work for small companies like Audi, for the very reason you pointed out, that being very few dealers to cover a large state. I think for a large corporation like Chrysler, or GM, it could work. Sure, there will be bumps in the road until it gets sorted out, but I think the concept is valid.
jerrywimer says:
04:26 AM, 04/21/08
Actually, it would work well to have MORE service centers, rather than centralized service centers. Fewer dealerships, more service locations, dissaciated from each other. You buy a new vehicle once every several years, but service it much more often, and travelling a bit to find the new car you like isn't so big a deal as constantly travelling a long distance for routine (or otherwise) maintenance!
deagle13 says:
09:48 AM, 04/21/08
GM tossed this idea around in the early 90's - they wanted to consolidate smaller local dealers into regional mega dealers and open a bunch of local service-only centers. It never materialized, though, and I'm not sure why. I think the SUV boom of the late 90's lessened GM's desire to close dealers.
jerrywimer says:
03:48 AM, 04/22/08
Too bad. The idea would seem to be beneficial for all involved, from GM, to the dealerships AND the service centers.