Automotive Franchises Make Sense For Former Car Dealers

Oct. 23, 2009 - PRLog -- The shaking in the U.S. auto industry may have caused earthquakes from the manufacturers down to the suppliers. But there’s one aspect of autos that is actually thriving these days – auto franchises (http://automotive-franchises.brandexpansion.com/)

Consider the reasons why:

* The downward economy has put the brakes on new car sales (except during a stunt like Cash for Clunkers, which saw a brief upswing). According to the Wall Street Journal, car sales are down every month in 2009 compared to 2008, except for during the Cash for Clunkers period. In all, car sales are down more than 25 percent in 2009 – and 2008 wasn’t that great of a year in the auto industry to begin with. So what does this have to do with auto franchises? People are driving their cars longer and need to make necessary repairs and keep up with regular maintenance.

* In mid-2009, Chevrolet began cutting 1,100 dealers. Chrysler likewise eliminated nearly 800 dealers. While a handful of dealers had multiple brands and were able to remain open selling those other brands, for most, it meant they had an empty lot, a slate of employees and the equipment to outfit service garages.  They could sell off their land and lay off employees or try to make a go of it doing something else. Car dealers are familiar with franchising since it works similarly to their previous relationship with the auto manufacturers.  Those car dealers had been able to stand behind the name brand of Chevrolet or Chrysler and provide strong service to supplement the national brand’s reputation.

“Many of these car dealers were surprised by the closures and spent months severing the relationship with the auto manufacturers. There were warranties to hand over, new dealer stock to shed and employees to deal with,” said Michael Hemenway, CEO of brandEXPANSION (http://www.brandexpansion.com), one of the nation’s top franchise consulting firms. “With that done, many are now beginning to explore other options and a number of them are finding that one or more franchises in the auto industry makes sense. The industry trends are really on their side.”

The automotive franchise industry offers a breadth of possibilities for not only former Chrysler and Chevrolet dealers, but also anyone who wants to capitalize on the longer vehicle ownership. Franchises offer everything from quick-oil changes to accessories to major vehicle repairs. With a national reputation of the franchisor behind it, car owners get a peace of mind that does not come from walking into a neighborhood garage.

Another growing segment of the automotive industry is in offering multiple franchises. Franchisees are finding that it makes sense to round out their offerings by including several franchises that perform distinctly different tasks.

To learn more about the possibilities in the automotive franchises – whether you are a former car dealer or not – contact brandEXPANSION (http://www.brandexpansion.com/contact-us/).

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brandEXPANSION is the only firm of its kind serving all aspects of franchising. The company operates the leading franchise-industry social networking site, FranchiseUltraLounge.com, and the franchise news site, brandexpansionhotpress.com.