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Old 05-16-2012, 05:06 PM   #1
XDCX
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Default Does Nissan require "Executive Managers" for stores owned by absentee owners?

I read an interesting report where Townsend Nissan in Tuscaloosa, AL promoted B.J. Perkins as the dealerships Executive Manager. Here's a link to the news report - click here

What I thought was most interesting were the comments from Nissan. Here's an excerpt from the article:
“All Nissan dealerships must have either an on-site owner or an EM,” said Mike James, Nissan's dealer operations manager for Northern Alabama.

“The EM position is set up so that Nissan can contact only one or two decision makers. Essentially, it helps to streamline our process. From a dealer standpoint, the EM acts just like the owner. He is responsible for all aspects of a dealer operation,” he said.

“Additionally, approved EM's are acceptable as owners if they ever decide to buy into the dealership or if they ever choose to purchase a dealership on their own,” James said.
In concept, it sounds like Nissan's Executive Manager (EM) position is the equivalent to a Chrysler store that has a General Manager (GM) who's on Paragraph Two of the Dealer Agreement. The primary difference being that Nissan apparently requires absentee dealers to designate an individual where Chrysler has historically not made this a requirement.

From Nissan's viewpoint I think the requirement makes good sense. For the viewpoint of the General Manager, I still like the idea. In my opinion it's hard for a GM to run a store when his/her dealer is absentee and not available to make important decisions.

I've often heard that Import Franchise Agreements are more demanding than the Agreements issued by the Detroit Three. I wonder if any of the other Import OEMs have a EM requirement like Nissan?
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Old 05-17-2012, 07:41 AM   #2
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Hyundai Motor America had this same policy starting in 1986, the G.M. had to be approved as well as the Dealer Principal, any partners and so forth.

Initially HMA went after mega dealers (due to net worth and capital requirements to build free standing stores with a non dualing policy which made these stores in most cases absentee) this policy was relaxed in 1990 when many dealers went by the wayside or sold out during the recession of that period.

It is still monitored by HMA today based on the stores size (sales volume) and the market it is located in (metro markets especially).

KMA (Kia) also has this policy as well, both companies adhere to this with dealers with multiple stores of each brand.

Initially many of HMA regional staff were former Nissan staff, some KMA staff were former HMA reps, plus many ex-Chrysler and Ford people as well.
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Old 05-17-2012, 09:19 AM   #3
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Originally Posted by rd3311 View Post
Hyundai Motor America had this same policy starting in 1986, the G.M. had to be approved as well as the Dealer Principal, any partners and so forth.

Initially HMA went after mega dealers (due to net worth and capital requirements to build free standing stores with a non dualing policy which made these stores in most cases absentee) this policy was relaxed in 1990 when many dealers went by the wayside or sold out during the recession of that period.

It is still monitored by HMA today based on the stores size (sales volume) and the market it is located in (metro markets especially).

KMA (Kia) also has this policy as well, both companies adhere to this with dealers with multiple stores of each brand.

Initially many of HMA regional staff were former Nissan staff, some KMA staff were former HMA reps, plus many ex-Chrysler and Ford people as well.
Thanks for the information, that was very interesting.

From your perspective as a Dealer Principal, is there a downside to this requirement? Obviously you don't want your GM to sign an agreement with the factory that's detrimental to your store, but then again if you've selected the right person and clearly defined their authority that shouldn't be an issue.

I also like the idea that Nissan considers dealership EMs as being ready to be Dealer Principals if they want their own store.
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Old 05-18-2012, 09:58 AM   #4
rd3311
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Quote:
From your perspective as a Dealer Principal, is there a downside to this requirement? Obviously you don't want your GM to sign an agreement with the factory that's detrimental to your store, but then again if you've selected the right person and clearly defined their authority that shouldn't be an issue.
All checks or agreements have to more than one signature (principal included).

The G.M. is in essence the "go to guy" on the front line of communication between HMA/KMA and the dealer.
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Old 05-18-2012, 11:07 AM   #5
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All checks or agreements have to more than one signature (principal included).

The G.M. is in essence the "go to guy" on the front line of communication between HMA/KMA and the dealer.
Thanks for the information.

I like the idea where two parties are required for all checks and agreements but I wonder how many Dealer Principals would include themselves in that requirement?

As before, I like the idea of an "Executive Manager" who's essentially pre-approved to buy a store and receive factory approval. It appears to be a "win-win-win" for all parties and certainly gives the EM a reason to keep the store's operations squeaky clean so there's nothing to tarnish his/her reputation.
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