When I read the news report I was perplexed by the actions of Gulf States Toyota.
As most people in the car business likely know, Toyota has a unique situation with their dealers in the South and Southeast portions of the U.S. While most Toyota dealers deal directly with Toyota, dealers in certain geographical areas deal with a distributor who then deals with Toyota. These distributor deals date back to when Toyota first entered the U.S. retail market.
In the case of Dick Poe Toyota, Gulf States Toyota is the distributor that controls the franchise.
As before, it seemed strange to me that Gulf States Toyota seemed to be so anxious to terminate their franchise agreement with Dick Poe Toyota. I wonder if Dick Poe Toyota is under-performing in the eyes of Gulf State or whether Gulf States would rather have direct control of the dealership that serves the El Paso market.
