Friday, January 21, 2011

Dealers Territory Protection Laws and Dealer Expo 2011

This year on one of the panels, I've been asked to talk about Dealer Rights and exclusive territories.

Seems like the bad economy has forced many vehicle distributors ( Mainly Taiwanese and Chinese scooter importers ) to put new dealers within the territories of existing motor vehicle dealers without canceling existing franchises. This is the opposite of what has been happening in the big bike market where Honda, Yamaha, and Harley have been allowing dealers to close or just downright not helping them stay open.

Depending on the state some of these dealers have either been hurt or made out like bandits when going before a commission since it comes down to the distributor and what they have done.

We still face a huge glut of scooters in warehouses, not as many as in 2009 or 2010, but there are Chinese brands with 2,000 or more units and more GE repos. Having a local dealer buy SYM HD200cc units for $500 a piece at the local auction that were meant for Canada can severely affect the local SYM dealer, so we'll also talk about how these bikes affect dealer territories and rights. Depressed markets like Puerto Rico also have a backlog of out of business distributors with logistics companies holding on to over 5,000 units released from customs and EPA which are continuously finding new homes. Some American dealers have resorted to buying units from the auctions in Puerto Rico or selling defunct brands like FLYScooters which were liquidated. How does this affect you in terms of Lemon Laws? Warranties? when the unit is brand new and you the dealer sell it without a warranty? ( hint MRP is here to help you with those parts by the way Plus more on SEARS / PEPBOYS and other big box retailers selling vehicles and how this can either benefit or harm your small dealership.

So we'll cover this at one of the sessions from the scooter industry perspective. So please make sure to come out to Dealer Expo.

By the way the Martin Racing Performance booth is 5711 if you haven't put it in your planner now is the time. Stop by and check out all the great new products we will have for scooters, atvs, and motorbikes.

All this and more at the 2011 Dealer Expo.

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