While new-car dealers see value in having clean and modern facilities, many have questions and, in a significant number of cases, are not convinced that the factory upgrades they are being asked to do will result in an increased return on investment, according to a new study by Glenn Mercer issued recently at a press briefing during the 2012 NADA Convention and Expo in Las Vegas.
In response to dealer concerns, NADA commissioned last August the “Factory Image Programs” study to provide an objective, unbiased and neutral analysis of the various factors that drive the economics of facility programs.
Based on numerous interviews and discussions with automaker executives and a diverse selection of dealers, recommendations were provided to both parties, such as working together to reduce some of the tensions that exist over these issues.
The executive summary and full report are available at www.nada.org/facilitystudy.