VW dealer showroom requirements.

goochy

It seems VW are going down the route of its parent company Audi in requiring its dealers to have completely stand alone premises , this has seen the likes of Msl Ballsbridge and Grange give up the franchise as they were unwilling to build new premises also the contract being given was short.

Does this mean dealers whatever the size of their catchment area , will have to redevelope / build new premises ?
A no. of dealers like Tom Murphys , Sheehys Carlow and Naas , Michael Moores Athlone and Frank Hogans have spent money during celtic years and are only just getting back on their feet.

What do these dealers do , build yet more premises or give up Vw?

At least when dealers gave up Audi , they had VW to fall back on and some turned Audi showrooms into Skoda , Seat or VW van centres.

Hyundai are doing very well here , but seem to be going for volume instead of big profits . They don't seem to be putting much pressure on dealers to have to have the best of premises.

porsche boy

goochy wrote:

Hyundai are doing very well here , but seem to be going for volume instead of big profits . They don't seem to be putting much pressure on dealers to have to have the best of premises.

Hyundai wouldn't be considered a premium brand so they don't push too hard with their dealers. Mitsubishi franchises can be had with little more then a yard & a shed. If I was at home I could post the requirements for a Mercedes showroom, it wuld give you some laugh. If Hyundai's business model is aimed toward units rather then profit, it's working... Hyundai's are everywhere and outselling the usual 'top 3'- ford focus, VW golf, Toyota Corolla and 20 years ago you'd be embarrassed to sit in one.

goochy

So you are saying Merc. are strict ? in Ireland Mdl have not been strict on dealers - just as they weren't when they imported Vw.

Mdl should have made Merc. dealers build new premises during boom years like Bmw did ( Audi have done since then ) Instead dealers spent big money on dual Vw / Merc. places that are now likely to be obsolete.

Galway has no Merc. dealer - Frank Hogans in Limerick has fallen behind the times as a Merc. dealer

porsche boy

Well historically I can't comment but if you want to get a franchise today you'd be jumping through some serious hoops to get accepted including showroom that can fit at least 4 cars, interior to a specification includes special finish on floors, genuine leather seating, not to mention the kitted out workshop and outside display area.
I thought VAG were going with service centres, core dealers & premium dealers, a tiered approach reflecting the size & sales output of the garages. Maybe they have changed plans again.

goochy

maybe your right - premium dealers only in large urban areas.

neris

We're stand alone requirements and big shiny glass showrooms not the reason so many dealers got into serious financial trouble over the last few years? Decent sized former main dealers premises and large yard for sale and service area not far from me in Dublin.

goochy

Yes . Profit margins on premium brands as dealers have no problem getting loans and are willing to spend the money.
I would worry for jag and land rover dealers as don't think they will have sales to go with investment in New premises

368100

goochy wrote: »

It seems VW are going down the route of its parent company Audi in requiring its dealers to have completely stand alone premises , this has seen the likes of Msl Ballsbridge and Grange give up the franchise as they were unwilling to build new premises also the contract being given was short.

Does this mean dealers whatever the size of their catchment area , will have to redevelope / build new premises ?
A no. of dealers like Tom Murphys , Sheehys Carlow and Naas , Michael Moores Athlone and Frank Hogans have spent money during celtic years and are only just getting back on their feet.

What do these dealers do , build yet more premises or give up Vw?

At least when dealers gave up Audi , they had VW to fall back on and some turned Audi showrooms into Skoda , Seat or VW van centres.

Hyundai are doing very well here , but seem to be going for volume instead of big profits . They don't seem to be putting much pressure on dealers to have to have the best of premises.

Prinickity I know but VW Group is the parent of Audi

Toyotafanboi

It is necessary to have sales, parts and service all under the one roof which is why MSL grange didn't pursue the contract further I believe.

Hyundai do not give one single **** about after sales. They just want to get units on the road, after that they don't care I reckon. In time that will probably change as the brand stabilised but they done a good job over the last decade to build things to where they are.

goochy

but aren't they very reliable ?
know someone who bought a Tucson but isn't happy at all , thinks its a step from from IX35.

368100

goochy wrote: »

but aren't they very reliable ?
know someone who bought a Tucson but isn't happy at all , thinks its a step from from IX35.

I bought a Hyundai Coupe in 2003 before they were thought of as very reliable......but i remember in later years it had been left sitting for nearly 2 years with next to no driving and bar a flat battery, engine was perfect even with high miles.

Now every corner I turn around I see a Tucson.......they're not a bad looking car it's just the amount of them on the road that would put me off.

goochy

yes but heard they are not that great - don't get good reviews in mags.

coylemj

I'm not sure what MSL could have done better to hang on to the franchises they had in Deansgrange (Grange Motors) .....

1. MSL merged the service departments of Ballsbridge Motors and Grange Motors into a brand new service premises on Pottery Road. They later merged the service operation of Europa Cars (Merc. and Mazda service) Blackrock into Pottery Road.

2. They built the first purpose-built Audi-exlusive showroom in the country. Previously every Audi showroom was co-located with VW.

3. They built a brand new all-glass VW showroom.

Since then, the Audi franchise was withdrawn, the Audi showroom now sells Hyundai and the VW showroom has been taken over by Frank Keane. Rumours say that that VW showroom will eventually do commercials only and that Frank Keane will build a new sales and service operation for VW cars on the southside, venue TBC.

goochy

Mooneys own the Hyundai business. What will happen to the mercedes showroom ?
I think msl are right to be cautious. However their parent company Mdl are also very cautious and that went against them in later years