Another woe for car dealers: Losing business to nearby states
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Coronavirus Coverage
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • VW badges rtrs web.jpg
      VW Group operating profit drops by half in 2020
      Washington Auto Show postponed amid ongoing COVID-19 pandemic
      Subaru expands Feeding America donation, advertising
      Mass. dealership group to pay $1 million in unemployment scheme settlement
    • Nissan flips the switch on electric reboot
      Faraday Future moves forward with EV project, will enlist Geely's help, report says
      Audi to build EVs at new company majority owned by VW Group
      European Chamber rules out American, European export curbs as cause of chip shortage
    • Detroit Aerial Panorama during sunset
      Developing future workers to fuel growth in mobility
      Getting around in Las Vegas often involves long waits for a crowded monorail ride, below, or taking escalators up and down to cross elevated pedestrian walkways along the Strip.
      Las Vegas offers best and worst in transportation challenges
      Where is transportation headed?
      In pandemic environment, RV industry ‘roaring back'
    • Lime scooters await riders
      Lime plans to add moped-sharing to scooter, bike services
      TuSimple's self-driving commerical truck
      Aeva to supply lidar sensors for TuSimple's self-driving trucks
      Bosch uses one cockpit computer to coordinate the vehicle’s entire human-machine interface.
      Bosch links electronics, software for industry shift
      Crashes involving electric vehicles, such as that of a Tesla Model X in California in 2018, pose battery-fire concerns for first responders.
      NTSB says automakers need to better arm emergency responders
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • 8 rites of winter (and spring) lost to the pandemic
      GM, Ford finally get some love on Wall St.
      Stellantis is born into a new world
      Dealers call on Nissan to revive Xterra
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
      • Holden
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • PSA
      • Citroen
      • Opel
      • Peugeot
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Forget the Ford GT; Moray Callum's biggest hit is the aluminum F-150
      Nikon turns lens on auto factory, build quality
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
      A victory lap for Detroit car design
    • view gallery
      1 photos
      As Many As The Stars
      view gallery
      1 photos
      A New GM
      view gallery
      1 photos
      The Bridge
      view gallery
      12 photos
      Leo Michael's best of 2020
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • January 26, 2021 | Will EVs finally find their footing?
      January 19, 2021 | Small car part causes big problem
      January 12, 2021 | Automotive industry shined in 2020
      December 8, 2020 | In a year that lacked luster, All-Stars showed how to shine
    • Jamie Butters
      Tavares knows that he's a star
      Darren Militscher
      Time for new pre-owned pricing tack
      Leo Michael
      Out with the tie, in with the teeth
      4 myths that threaten dealers
    • How Tesla, GM transformed EV market in 2020
      Is sales recovery nearing an end?
      Beijing's uphill battle to boost EV sales
      Nasdaq-like Star Board poised to become key finance platform
    • Used-car biz not getting easier, but it's better
      EV charging
      Time for U.S. to embrace the EV
      Ford's ‘Finish Strong' ad sets right tone for '21
      UAW settlement brings justice, voting rights
    • Is banning ICEs in our best interests?
      GM should share EV risk with dealers
      From Toyota store to hydrogen highway
      Ready to buy Mirai, but where to fuel?
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: GM to use Qualcomm's cockpit, driver-assistance chips
      AutoNews Now: Volkswagen talking with suppliers about microchip compensation
      AutoNews Now: Tavares to have 38 direct reports at Stellantis
      AutoNews Now: VW to take 'radical, new approach' with flagship electric sedan
    • First Shift: Kia dropping two sedans from U.S. lineup
      First Shift: Biden vows to swap federal government's fleet with EVs
      First Shift: Nissan dealers want Xterra's return
      First Shift: Ford prices Takata recall at $610M
    • N.J. dealer helps position peers for ‘electric revolution’
      DCH Millburn Audi
      'Finding the diamond in the rough': How 2020's No. 1 dealership retains talent
      Don Johnson Motors
      'Distinctive culture' cuts turnover, carves career paths at Wis. dealership group
      Why 2020 could be a record year for buy-sells
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Leading Women Conference
    • Fixed Ops Journal Forum
    • ANE Shift
    • Shift: Mobility at a Crossroads
    • Shift: The Future of Mobility (CES)
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Gentex
    • Reputation.com
    • Ricardo
    • Ricardo
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
    • IHS Markit: COVID-19: The future mobility delusion
    • IHS Markit: The battery electric vehicle (BEV)
    • Level5: 2020 Automotive E-Commerce Report
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Dealers
April 12, 2020 12:00 AM

Another woe for dealers: Losing business to nearby states

Melissa Burden
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Pittsburgh-area dealer Scott Brewer has 22 employees laid off.

    Pennsylvania dealer Scott Brewer has lost vehicle sales to Ohio, Virginia and West Virginia — nearby states where sales are continuing during the coronavirus outbreak.
    Brewer, president of Brewer Airport Toyota in Moon Township, near Pittsburgh, isn't allowed to sell any vehicles — even online — under Gov. Tom Wolf's public safety orders.
    Brewer's store is a half-hour drive from the Ohio state line and 40 minutes from West Virginia. And dealerships in those states are advertising to Pennsylvanians, Brewer said.
    "Forcing somebody to either drive out of state or have a car delivered to them — how that's safer for another state to do it than a Pennsylvania dealership is beyond me," Brewer said.

    Dealers across the country, already feeling the huge falloff in vehicle sales in the coronavirus outbreak, say they are disheartened to have their customers drive into neighboring states to buy or lease a vehicle. And many like Brewer are frustrated.

    Dealers, associations and legislative allies in states such as Pennsylvania, Washington and Michigan have been lobbying governors to allow vehicle sales by appointment or online during the pandemic.

    In Michigan, it's worked. Others are still trying.

    "Right across the border, 10 minutes across the border … we've got dealers in Oregon that are selling vehicles," said Monte Phillips, a partner and general manager in Vancouver Auto Group, which owns Ford and Hyundai-Genesis stores in Vancouver, Wash.

    Phillips said while he had to lay off his sales staff, his business development center has been humming with Internet leads. While his group reserved some vehicles for people to buy once the stay-at-home order — now set to last through May 4 — is lifted, Phillips acknowledges some are "more interested in the here and now and therefore head south across the bridge to purchase their vehicles from competing dealers."

    Sales across state lines

    Some dealerships say they are losing vehicle sales to neighboring states amid stay-at-home and nonessential-business closure orders. Below are examples of situations in 3 states.

    Michigan: Gov. Gretchen Whitmer last week extended a stay-at-home order through April, during which dealership showrooms must remain closed. Updated guidance on critical work force is allowing dealerships to sell and lease vehicles online and to deliver vehicles to customers.

    Pennsylvania: Gov. Tom Wolf on March 19 ordered non-life-sustaining businesses, including dealership showrooms, to close. 8 members of the Pennsylvania House of Representatives sent a letter to Wolf on March 27, asking him to consider auto sales by telephone and online as well as delivery to customers. A bill in the state Senate would allow for remote notary services that could help dealers lawfully sell vehicles online.

    Washington: Gov. Jay Inslee in a March 31 order updated guidance for auto dealerships that allows limited sales and leasing. The Washington State Auto Dealers Association has requested expanded sales while observing social distancing and sanitization requirements.

    On March 31, Washington Gov. Jay Inslee updated guidance for auto dealerships that allows limited sales and leasing. Dealerships can close transactions that were pending before Inslee's March 23 "Stay Home, Stay Healthy" proclamation and can conduct sales to replace vehicles too damaged to repair, to extend an expiring lease or to provide transportation to essential workers.

    Washington dealerships can have only one employee in the store during a sale, and visits must be scheduled remotely and by appointment.

    Vicki Giles Fabré, executive vice president of the Washington State Auto Dealers Association, said it has shared stories and videos from dealers of limited sales as well as those missed. The association has asked Inslee to further expand sales.

    Washington, home to nearly 300 dealers with more than 500 new-vehicle franchises, saw new-vehicle sales fall 57 percent in March, Fabré said. April sales are expected to be lower, while fewer than half of the state's dealership employees are believed to be working, she said.

    Pehl: Would not jeopardize health

    Heidi Pehl, president of five-rooftop I-5 Cars in Chehalis, Wash., said her dealership group has sold a few vehicles under the limited-sales criteria, including a Toyota truck to a firefighter whose vehicle was totaled.

    With 40 percent of her staff laid off, Pehl is hopeful the state will allow more auto sales.

    "We absolutely would not jeopardize anyone's health, including myself and my people that work for me," she said.

    "This is a need. And it goes beyond the dealer. It goes to the city and the counties and the state revenues."

    In Pennsylvania, where there has been confusion among the state's 880 new-vehicle dealers since Wolf on March 19 ordered the closure of non-life-sustaining businesses, including showrooms, dealers have asked for exemptions to sell vehicles.

    Rob Cochran, CEO of the #1 Cochran group with about two dozen rooftops in Pennsylvania, applied for one. He said the state indicated that dealerships could sell online, but sales paperwork requirements can't be completed online.

    He's hopeful the state and local dealer associations and the legislature will come up with a solution to allow for online sales. Neighboring New York and New Jersey, while under stay-at-home orders, are allowing remote sales and deliveries.

    "Online's a great step and at least gives us an opportunity to take care of the people who are most in need," Cochran said.

    Legislation in the Pennsylvania Senate could allow dealers to finalize a transaction without a physical notary — which is now required — said Brewer, the Pittsburgh-area dealer, who has 22 employees laid off.

    Eight members of the Pennsylvania House of Representatives on March 27 sent a letter to Wolf, asking that he consider allowing auto sales by telephone and online with delivery to customers. A message was left with Wolf's office seeking comment.

    "We are still pushing for all new-car and -truck dealers to have the ability to sell by appointment with proper controls in place," John Devlin, CEO of the Pennsylvania Automotive Association, said in an email.
    Michigan, which in a March 23 order said showrooms had to close, last week gave a small reprieve to dealerships as the state's stay-at-home order was extended through April. Dealership employees, in an order Thursday, April 9, were included among essential workers and now can conduct remote sales and leases and can deliver vehicles to customers.

    Last week, Michigan state Sen. Dale Zorn sent a letter to Gov. Gretchen Whitmer asking that she allow dealerships to sell and lease vehicles online.

    Zorn, a Republican from Ida, believes the governor's move will aid consumers and Michigan's economy.

    "It's going to help our state dealers compete just a little bit with Ohio and Indiana," Zorn told Automotive News.

    "Ohio … has allowed their dealers to remain open, person-to-person contact. And we're noticing people from Michigan, especially on the border counties, going to Ohio to purchase their vehicles."

    RECOMMENDED FOR YOU
    OBITUARY: Herbert Woodbrey
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    OBITUARY: Dale Baker
    Dealer anniversaries
    Dealer anniversaries
    Store tries to go back on Bronco Sport sale
    Store tries to go back on Bronco Sport sale
    Sponsored Content: 4 ways your cross-state transactions can become streamlined
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 1-25-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 12-14-20
    Read the issue
    See our archive
    RETAIL TECHNOLOGY NEWSLETTER: Sign up for our Tuesday afternoon newsletter that breaks down the latest developments in how technology is changing the auto sales landscape.
    AUTOMOTIVE NEWS TV WITH TOM WOROBEC: Sign up for our afternoon newscast and catch up on the top news of the day with our brief video roundup.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
          • Holden
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • PSA
          • Citroen
          • Opel
          • Peugeot
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Coronavirus Coverage
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Leading Women Conference
        • Fixed Ops Journal Forum
        • ANE Shift
        • Shift: Mobility at a Crossroads
        • Shift: The Future of Mobility (CES)
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Gentex
        • Reputation.com
        • Ricardo
        • Ricardo
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
        • IHS Markit: COVID-19: The future mobility delusion
        • IHS Markit: The battery electric vehicle (BEV)
        • Level5: 2020 Automotive E-Commerce Report
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds