4LT GS Roadster
Tragesser Ford of Ross, Ohio, survived the Great Depression, World War II and all the other ups and downs of the past 95 years.
But after making it through the past three years and one of the worst downturns to hit the auto industry, the Tragesser family is bowing out of the new-car business -- just as the industry appears poised for a profitable revival.
Ford Motor Co. came calling Dec. 10 and asked the Tragessers to overhaul their existing facility to the tune of up to $1 million. Their other option: Resign the franchise in exchange for some buyout cash.
"It would be foolish money spent, in our opinion," said David Tragesser, who runs the store 20 miles from Cincinnati with brother Mike and their 90-year-old father, Vernon. "So we elected to take their offer and take the buyout."
Call the dealership a victim of renewed pressure being applied across the retail front. Even as some dealerships still struggle to get back on firm financial footing, manufacturers are pushing them to invest in pricey facility upgrades and meet tightened standards in other areas such as sales performance. It's an about-face from the worst days of the downturn, when the automakers were preoccupied with their own survival and many backed away from their demands on dealers.
In an informal Automotive News survey of dealers across the country, more than half of the approximately 330 respondents said there is increased pressure to comply with factory standards. Almost three-quarters identified facility improvements as a pressure point. Some complained about factory bullying. Customer-satisfaction scores and vehicle ordering are other areas where demands are high, respondents said.
Ed Tonkin, a multibrand Oregon dealer and outgoing chairman of the National Automobile Dealers Association, says the standards are too tough. Many dealerships are still recovering and don't have the robust balance sheets to support big investments.
"Certainly it's the dealer's desire to have nice facilities that are clean and up-to-date, but you can't squeeze blood from a turnip," Tonkin said. "Manufacturers are becoming very demanding at a time when the dealers can't afford them to be."
www.autonews.com
