http://www.autoweek.com/news.cms?newsId=101913
Bricklin reveals bold store plans; $15 million will build each dealership
outside of suburbs
DALE JEWETT | Automotive News
Posted Date: 3/4/05
Malcolm Bricklin's cars will be made in China, but his over-the-top sales
pitch to dealers is all-American.
Bricklin is asking dealers to spend a hefty $15 million to build stores,
complete with a drive-in theater, test track, child care center and car
wash. He believes these attractions will entice people to drive 30 minutes
or more to buy Chinese cars in stores outside of suburbia.
It's all part of Bricklin's grandiose vision of turning auto retailing on
its ear. He wants:
>>> The Chinese factory to build what dealers say they need.
>>> Dealerships to be entertainment destinations.
>>> Dealers to earn as much as 15 percent gross profit by selling at 30
percent less than the competition for equivalent vehicles.
Luring dealers
Now comes the hard part: signing up dealers to buy into his vision.
Bricklin says he will be talking soon to about 18 interested dealer
candidates. He will ask them to put $2 million each into an escrow account
with his Visionary Vehicles LLC.
If dealers are offered franchises but decide not to proceed, they will get
the money back, Bricklin says. He won't have access to the funds in escrow,
he adds.
Some context for Bricklin's $15 million figure: A new Pontiac or Toyota
store typically costs as much as $7 million including land, says Sven
Pavlik, COO of Pavlik Design in Fort Lauderdale, Fla. The firm specializes
in designing auto dealerships.
A large multistory Lexus dealership and its land can cost as much as $15
million, Pavlik says.
And Pavlik cautions that some elements of Bricklin's concept, such as the
drive-in theater screen, will have a hard time meeting local zoning
regulations.
Bricklin acknowledges that most of the new dealerships could not be ready
in time for the planned January 2007 start of sales. So his company is
working on designs for temporary stores, he says.
Bricklin says he plans to recruit 250 dealers. He says they will offer five
nameplates manufactured in China by Chery Automobile Co. Ltd. The automaker
still is developing the U.S. vehicles.
Unconventional startups
Bricklin has spent his career on unconventional auto startups, most of
which flopped. He launched Subaru of America Inc. in 1968, which survives.
Bricklin Vehicle Corp. assembled 2,800 cars in Canada and then failed in
1976. Yugo America Inc. failed in 1992.
In addition to the sky-high dealership price and exotic list of store
features, Bricklin's strategy to sell Cherys has other unconventional
aspects. He wants Visionary Vehicles to own 10 percent of each dealership's
operations but not the land or buildings.
"Yes, there are some problems with that," Bricklin admits. "We've got to
figure how to do that, decide what we are asking for 10 percent of."
He also expects Visionary Vehicles to take an ownership interest in Chery.
And he says he will give dealers the opportunity to invest in Visionary
Vehicles. Bricklin says the cross ownership will create a sense of
camaraderie.
(c) 2005 Crain Communications, Inc.
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