MJP –
The shocking closure of roughly 75 outlets has been announced by 5 different dealership brands this year, according to sources.
A massive hacking event hit the automotive business hard, and as a result, several dealerships throughout the US are permanently ending operations.
Among the many reasons the dealerships are closing their doors is the desire to lessen the company’s physical presence, accusations of mismanagement, and severe financial losses.
Maserati, Fiat, Ford, and Lincoln dealerships went out of business in the last month, according to TheSun.
The 90-year-old New York vehicle dealership Buddenhagen’s Ford permanently shut down in the middle of July.
When the dealership began selling Fords in the mid-1970s, it had previously offered Dodges.
Tragically, though, the business had lately experienced something similar.
The dealership was sold by its original owners to two new co-owners. Unfortunately, one of the new managers passed tragically after being diagnosed with leukemia.
Sullivan County Democrat reporter Hal Roeder said that Buddenhagen’s Ford will formally close its doors after Friday, even though there is still internal work to be done.
June saw the closure of the 114-year-old Harley-Davidson flagship showroom in San Francisco.
SEE MORE –
Big-Decision! CVS Close to Shutting Down 900 Stores Across the Country
To draw attention to what they saw as the dealership’s poor inventory management, several former employees took to social media to air their grievances.
The now-defunct dealer’s technician claimed that the business was “run like a museum” and that it sold hardly any merchandise.
A key factor that drove the dealer “into the ground” was the managers, he adamantly declared.
The American division of the Canadian dealership firm AutoCanada is contemplating shutting down after losing over a million dollars.
When hackers broke into the CDK Global network and began attacking the sales operational systems utilized by dealerships, it had a devastating effect on sales for American automakers.
In the US market, AutoCanada lost $33.1 million during the breach, whereas in Canada, the company made $2.4 million.
“Spending time and energy to properly turn those stores…,” AutoCanada’s Executive Chair Paul Antony remarked when asked about these losses during an earnings call. In light of the present circumstances, I don’t think it makes sense,” implying that the business may close its dealerships in the United States.
Lincoln affirmed to The U.S. Sun that by December 2024, the automaker plans to have closed 50 dealerships.
Lincoln launched a repurchase program in January to buy franchises from dealers and steadily reduce its overall reach.
In 2021, when it came to the premium automobile industry, Lincoln had far more dealership lots than its rivals.
The U.S. Sun was informed by a Lincoln representative that the firm had reconsidered its original proposal to cut the number of dealers to 400.
Current projections indicate that Lincoln will have 450 dealerships by year’s end.
Even with the store closures in the works, Lincoln is expected to post its best sales year since 2020 in 2023.
Lincoln has already made “significant progress” in 2024 with closing stores and will “continue to work together with our retailers to make sure we have the right representation in the top luxury markets,” according to a spokeswoman.
The Alabama dealership that sold Stellantis vehicles is likewise permanently closing its doors.
The franchise of Benchmark Automotive, which marketed high-end vehicles from Fiat, Maserati, and Alfa Romeo, was sold for $40 million in May.
It was the franchise owner of Subaru stores, Hallmark Group, who bought the 4.4-acre plot.
After lamenting the departure of the premium cars, city officials expressed their continued enthusiasm for Subaru’s outdoor-focused brand.
Sign up for our newsletter or enable push notifications to stay up-to-date on shop closures and similar headlines.
