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Not really sure what the difference is between a "certified" independent shop and a real dealer. Manufacturers are going to require those "certified" places to meet the same requirements as a dealer so not sure what that changes in the grand scheme of things. They want more repair process consistency in dealerships, not less, so having thousands of little unique shops is just not a viable option. (Not to mention state franchise laws would probably prevent this from happening, anyway.)
With more dealer consolidation there will be opportunities to see if dealers can set up fewer sales centers but maintain the same number of local service centers in a given area. Didn't work before when the manufacturers tried it so will be interesting to see if a Penske or AutoNation can make that model work.
A certified independent shop can often work on multiple OEM equipment. In my city if you want engine work done on a Ram 2500 with the Cummins engine you either go to the Dodge dealership, or you find an independent shop that is certified and licensed to work on the Cummins engine. Here there are 4 other independent shops who are licensed to work on a Cummins and one of which I use for warranty work because the Dodge dealer is horrific. To date I've not spent a penny on Cummins warranty work and have only set foot once in the dealership to get a Dodge truck specific recall done. It's not that difficult to expand that model.
A certified independent shop can often work on multiple OEM equipment. In my city if you want engine work done on a Ram 2500 with the Cummins engine you either go to the Dodge dealership, or you find an independent shop that is certified and licensed to work on the Cummins engine. Here there are 4 other independent shops who are licensed to work on a Cummins and one of which I use for warranty work because the Dodge dealer is horrific. To date I've not spent a penny on Cummins warranty work and have only set foot once in the dealership to get a Dodge truck specific recall done. It's not that difficult to expand that model.
Cummins is different as they are an independent engine maker, not a car or truck manufacturer. (For now...) They are the one one brand of engine that can be serviced at multiple dealerships.
When Cummins ceases to be an engine maker-only, which may happen in the car & truck business eventually, then what? (On the medium & heavy truck side, 26K GVWR and up, Cummins will either go the way of Caterpillar or they need to partner/buy an OEM, like Navistar.) Everyone else is pushing Cummins out of their trucks and going to proprietary engines.
That being said, a "certified independent" is really a dealer so not sure what the difference is there. They may be service-only or parts & service-only, but they must follow the same rules & regs as a normal full-service dealer when it comes to warranty repairs, etc.
Cummins is different as they are an independent engine maker, not a car or truck manufacturer. (For now...) They are the one one brand of engine that can be serviced at multiple dealerships.
When Cummins ceases to be an engine maker-only, which may happen in the car & truck business eventually, then what? (On the medium & heavy truck side, 26K GVWR and up, Cummins will either go the way of Caterpillar or they need to partner/buy an OEM, like Navistar.) Everyone else is pushing Cummins out of their trucks and going to proprietary engines.
That being said, a "certified independent" is really a dealer so not sure what the difference is there. They may be service-only or parts & service-only, but they must follow the same rules & regs as a normal full-service dealer when it comes to warranty repairs, etc.
This is my exact point! If an independent shop can become certified, they have to follow the same rules as the dealerships follow now. So where is the issue with independents performing warranty work instead of having a dealership model where the work must all be brought to them? This further proves my point that a dealership is no longer necessary.
This is my exact point! If an independent shop can become certified, they have to follow the same rules as the dealerships follow now. So where is the issue with independents performing warranty work instead of having a dealership model where the work must all be brought to them? This further proves my point that a dealership is no longer necessary.
To me, once an "independent" becomes certified for OEM warranty repairs, etc, then they are no longer an independent....they turned themselves into a real dealer.
So your point about "not needing dealers" and replacing them with independents doesn't make sense to m. All you are saying is remove the current group of existing franchise dealers and turning a whole bunch of privately-owned independent garages into dealers to take their place. You'd still have dealers in your scenario, just a different group of owners than before.
Now if a manufacturer bought all those dealers that sold & serviced their brand, then you would no longer have dealers anymore as the manufacturer would be in 100% control as far as building, selling and servicing their product.
Look at beverage distribution. At one time Pepsi distributed everything through independently owned distributors. Then Pepsi began to buy those distributors so they could sell direct and handle it themselves. So depending on what market you're in now, Pepsi Corp may be in 100% control of manufacturing and distribution but in other markets they still have distributors (the beverage industry version of a dealer) acting as the intermediary between Pepsi Corp and their customers.
But who's going to do warranty work for them? Or any other maintenance/repair work, for that matter?
Tesla would do their own repair/warranty work for customers with their own technicians. That's the point....they want to handle it all themselves and not use dealers owned by someone other than Tesla.
To me, once an "independent" becomes certified for OEM warranty repairs, etc, then they are no longer an independent....they turned themselves into a real dealer.
So your point about "not needing dealers" and replacing them with independents doesn't make sense to m. All you are saying is remove the current group of existing franchise dealers and turning a whole bunch of privately-owned independent garages into dealers to take their place. You'd still have dealers in your scenario, just a different group of owners than before.
Now if a manufacturer bought all those dealers that sold & serviced their brand, then you would no longer have dealers anymore as the manufacturer would be in 100% control as far as building, selling and servicing their product.
Look at beverage distribution. At one time Pepsi distributed everything through independently owned distributors. Then Pepsi began to buy those distributors so they could sell direct and handle it themselves. So depending on what market you're in now, Pepsi Corp may be in 100% control of manufacturing and distribution but in other markets they still have distributors (the beverage industry version of a dealer) acting as the intermediary between Pepsi Corp and their customers.
Maybe in your opinion.... but if they aren't selling vehicles, they are not a dealer. They are an authorized service facility. Those are on different ends of the spectrum. They can work on whatever they want, but are ALSO authorized to perform repairs on specific vehicles per the manufacturer, assuming they follow the guidelines set forth by the manufacturer. That does not mean they can no longer work on anything else. This is what makes them independent.
Tesla's model works for them because they are still considered halo cars. It's cool and new.
It's true dealers/car mfgs prey on the impulse buyer. You'll have less of an impulse purchase if you do have to wait days, weeks, months for a car. They'll go home and stew on it and figure a $700/month payment on a Dodge, etc just isn't in the cards and void the sales contract (easier done since car is not in their possession yet)
Maybe in your opinion.... but if they aren't selling vehicles, they are not a dealer. They are an authorized service facility. Those are on different ends of the spectrum. They can work on whatever they want, but are ALSO authorized to perform repairs on specific vehicles per the manufacturer, assuming they follow the guidelines set forth by the manufacturer. That does not mean they can no longer work on anything else. This is what makes them independent.
Just because you don't sell complete cars or trucks doesn't mean you are not a dealer. You still sell parts and service and most manufacturer's would consider a person a dealer if they are "certified" in your words, even if they don't sell the completed product.
Sometimes they call one a "full-service" dealer and others may be "parts and service" dealers. They are still both dealers. In the cases I am familiar with, if you look at the franchise agreements for the parts & service only dealers you will see the word "dealer" right in the middle or top of the front page and scattered throughout the documents.
Tesla would do their own repair/warranty work for customers with their own technicians. That's the point....they want to handle it all themselves and not use dealers owned by someone other than Tesla.
So then... Tesla is going to have dealerships.
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