dE wants your opinion on this subject/Please take the time to respond to this Discussion

Franchise lawyers say the franchise laws have changed little in response to the increasing
business being done online.

While some franchise experts say the relevant market
area hasn't changed--that dealers still do business within about a 20-mile
radius--the factories are stepping into a regulatory vacuum and policing
Internet sales. One example is that Honda allows service contracts to be
promoted but not sold on dealer websites. Factories also have restrictions on
the appearance of dealer websites, Internet lead response time/quality, vendors
dealers must use. One BMW dealer told dE if he didn't use Dealer.com it would
cost him $200,000.

1) What restrictions have the factories placed on dealer
websites--what you can and can't do?

2)What will it cost you if you don't comply?
3)How closely do the factories monitor your dealer websites as well as dealer
response time/quality to Internet leads?

4)Does the Internet allow dealers to encroach on other dealers' territories and is it happening? How are dealers
responding?

5)Do you think there's a need to amend the franchise laws to address
Internet traffic? If so, what would you change?

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Comment by Keith Shetterly on April 11, 2011 at 5:34pm: I appreciate the questions, but I have this to say: When I was at a dealer, I was careful not to get a lightning bolt from the OEMs, and so I kept my opinions to myself on this issue. As an independent consultant now, I still keep my opinions on this much to myself. If you really want to know the answers to your questions, create an anonymous survey and shoot it out to the membership.

Comment by Stan Sher on April 4, 2011 at 1:38am: Not a fan of the OEM forcing me to use a specific site. I don't want my site to be exactly like my competitors. I see this a lot with GM, Chevrolet in particular.

Comment by Charles L. Chosewood on March 30, 2011 at 3:02pm: Comcast in my area has spirited advertisements from dealers as far as 100 miles away

touting better deals than available in my own area! No personal problem to me there as

a dedicated capitalist. as I personally know of local dealerships that sell vehicles to

customers THOUSANDS of miles away for one reason or the other. What's wrong with

that! Thought so-called "FAIR TRADE went out in the 1950's! Don't bring it back!!!!!

Comment by Craig Lockerd on March 30, 2011 at 11:40am: I got nothing but...wow!

Comment by NANCY SIMMONS on March 30, 2011 at 11:28am: Well, we saw what happened with "Free Enterprise" in the GM winddowns and Chrysler terminations...

As far as web-sites go, when I was with a GM dealership, we were forced to have a Cobalt web-site and were already bound in a contractual agreement with Reynolds Web Solutions, therefore had two...That was bizarre!

Comment by Charles L. Chosewood on March 29, 2011 at 8:07am: Ever heard the phrase: "FREE ENTERPRISE" or the word: "CAPITALISM"? You sell

where there is a market or a customer and go head to head with any competition in

the area!

Comment by Scott Falcone on March 28, 2011 at 8:43pm: 4) No different than running a newspaper ad 100 miles away or a radio spot, etc...just a different "vehicle" for getting the message out.

5) If it is to protect an existing dealer from a new dealer entering the "physical" market then strong laws are needed...otherwise we have plenty of laws already and policing something like this would be difficult at best...not to mention costly for dealers to be involved in as any costs associated/incurred by OEMS would ultimately be passed on. Not to mention the OEMS are in most instances, so far behind understanding a Tier 3 digital strategy they wouldn't know what to police anyway.

Comment by Thomas A. Kelly on March 28, 2011 at 7:24pm: 4)Does the Internet allow dealers to encroach on other dealers' territories and is it happening? How are dealers
responding?

#4, It certainly does allow the strong to cross boundaries, it is happening and the net effect should be for the weak to become stronger. The weak or ill prepared can cross too but will have to become better/adapt to do so. If they fail, it's one more vote for Darwin.

Comment by MANNY LUNA on March 28, 2011 at 7:13pm

BMW Preferred Website Vendors Include Dealer.com, Cobalt, and Reynolds

It's good to know that people are reading my blog posts. Just after I posted a rec

ent story that Dealer.com was selected as a preferred website provider by BMW USA, I received two emails informing me that I did not have the whole story. Indeed they were correct.

This of course is a good time to remind vendors to send us press releases when new products or announcements are made. PCG always tries to communicate products and services that can benefit car dealers. Future announcements can be sent to: news@pcgdigitalmarketing.com.

Three Way Split

BMW USA in fact had selected three website providers to bestow the coveted "preferred" website vendor status. The preferred website providers will work with BMW dealers and BMW USA's compliance partner Williams-Forest, to ensure that all BMW dealership websites achieve their new written website standards by April 1, 2011.

All BMW dealers must achieve Level 1 compliance by April 1, 2011. Dealers who comply with Level 2 website standards can apply to have co-op dollars used for their website marketing costs. The co-op funds max out at $2,000 a month which is not an insignificant savings! Dealers should request details on which products and services qualify for the $2,000 co-op funds.

BMW dealers by now have most likely received their website compliance letters and actions that need to be taken. The clock will be ticking to meet the mandatory website standards by April 1st. The three companies approved for BMW dealer websites are well versed on what is needed to achieve Level 1 and Level 2 compliance.

Cobalt BMW Websites

Cobalt has created a PDF document that outlines their specific services and website opportunities for BMW dealers. You can download that PDF on this link: Cobalt Websites For BMW Dealers. Cobalt also offers a special bonus for BMW dealers.

According to the Cobalt brochure: "All Cobalt-endorsed website packages include pre-owned vehicle listings on BMWUSA.com and your regional marketing sites at no extra charge. This is a $300 per month value and a significant source of additional exposure for your pre-owned BMW inventory."

BMW Dealers can call Cobalt for more details on this program using this special BMW dealer hotline: 1-888-434-1053

Reynolds & Reynolds BMW Websites

Reynolds has created a microsite dedicated to their BMW dealership offering. That website can be reach on this URL: http://bmw.reynoldswebsolutions.com. Dealers interested in the Reynolds BMW website solutions can reach them at: 800-767-7879.

Dealer.com BMW Websites

As previously stated, Dealer.com is also a preferred partner and Matt Murray added these notes to the original story we posted:

“Those centers compliant with Level 2 standards will be able to submit their website invoice to NSI for retail co-op reimbursement beginning May 1, 2011. Eligible items will include general website management, search engine optimization (required to adhere to BMW policy), chat, mobile, video products and reputation management.

These costs will be reimbursed at 50%, not to exceed a co-op reimbursement of $2,000 each month. A onetime set-up fee for one of the BMW preferred website providers will be reimbursed at 50%. More details will follow with the revised retail co-op guidelines in February. If there are questions regarding this or any other facet of the program dealers should feel free to call Dealer.com at 888-437-8159 or email sales@dealer.com.”

If you are a BMW dealer and would like to reduce your website marketing and support costs, you should check out this new offering by Dealer.com. The website links that explain the program are: http://bmw.dealer.com.