Dealership Lose Sales and Work Overtime Because of the Recalls

Published: Apr 22, 2014

Simon Blackley / Foter / Creative Commons Attribution-NoDerivs 2.0 Generic (CC BY-ND 2.0)

Auto dealership across the nation are struggling to catch up with the fast pace of recalls by several major automakers.

Todda Caputo, a NY-based Chevrolet dealer, “can’t recall a time he had to deal with so many recalls.” As a result, he couldn’t receive floor pan financing for several used cars modelс “that he couldn’t sell because he didn’t have parts to fix them.” The number is indeed big – the dealership lost sales, because customers weren’t willing to wait too long. His servicing department is also struggling to both receive new customers, and repair cars already on the lot.

But GM brands aren’t the only ones negatively impacted by recalls. For example, in just the first two weeks of April, Toyota recalled nearly 1.9 million vehicles. But multi-brand dealerships have it worst. Recalls are a chance for them to win new customers, but if they don’t have the needed parts (nor any information on when they will be available), their reputation is hurt.

Read the full story in Automotive News.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.