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the motor mile why do auto dealers cluster? Monitoring competition:Just look out the window
Why do car dealerships cluster?
BY BILL FREEHLING
Date published: 7/14/2007
BY BILL FREEHLING
Dave Eadie doesn't have to look far to keep tabs on Purvis Ford's competitors.
Eadie is sales manager at the Ford dealership in Spotsylvania County's Four-Mile Fork area. Just down the road, there are dealers selling Volkswagens, Subarus, Jeeps, Hondas, Toyotas, Kias, Nissans, Chevrolets, Saturns and more.
"Your competition is right nearby," Eadie said. "You've got to be on your toes."
Eadie wouldn't have it any other way. He relishes the opportunity to bring "residual traffic" from other dealerships onto his lot.
Being able to keep a close eye on the competition is one of several reasons why car dealerships tend to cluster together in many cities. Michael Allen calls it the "motor-mile concept."
"It is fairly common," said Allen, public affairs director for the Virginia Automobile Dealers Association, which represents about 575 dealerships in the state.
Spotsylvania's motor mile is well-established. Dealerships line the stretch between Courthouse Road and Learning Lane on U.S. 1. That area also includes used-car dealers, car washes, mechanics, tire dealers and rental car establishments.
Stafford County Economic Development Director Tim Baroody sees great promise in the tendency for car dealerships to cluster together. He thinks that will soon occur in two Stafford locations near Interstate 95.
Rosner Toyota of Stafford opened in 2003 on Garrisonville Road near the intersection with U.S. 1. Rosner Automotive Group plans to open two dealerships nearby. One will sell Nissans in a 25,000-square-foot sales and service center; it's expected to open by the spring of 2009. The second dealership has not been announced.
In addition, a 46,000-square-foot Honda dealership is planned near the I-95 interchange on U.S. 17 in south Stafford. That's being developed by Frank Pohanka, president of Pohanka Honda of Fredericksburg. The auto park on U.S. 17 will also have a 16,000-square-foot building for another, thus-far unnamed, dealership.
Baroody has had discussions with representatives of several additional car brands. Within the next few years, he expects to be announcing about four or five new car dealerships in Stafford. He didn't say which brands, citing confidentiality.
drawing a crowd
Baroody expects the new dealerships will likely cluster around the ones on U.S. 17 and Garrisonville Road. He said the initial development makes it easier for him to attract new dealerships.
"Now that they've put their foot in the water, that helps," Baroody said.
Date published: 7/14/2007
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