With Chrysler’s CEO telling investors and the market that the auto-industry is ripe for mergers and GM saying it is looking into making a merger deal one might think that this is the wrong time to consider buying a car dealership franchise or opening a new one. And yet if you really think about it, things are changing rapidly in the automotive sector and there might actually be some opportunity in all this turbulence and chaos.
For instance Tata Motors an automotive company from India is looking at the US market to sell their smaller or tiny Nano type cars. Also China is going to be selling cars in the US and the first dealership is going into New Jersey soon. And what about the Smart Cars, they will soon be entering US markets and with higher fuel prices looking to stay about $3.00 per gallon and with the consumers tapped out, they will sell like hot cakes.
And have you considered other new US car market entrants like Tesla Motors electric cars, they may be selling dealerships soon using a franchising strategy to develop their brands and get those cars out to the consumers, once they go through their initial waiting list.
Additionally, this might be a time to buy a used franchise when things are tough and auto sales are hurting. The best time to buy something is when the price is lowest. Of course, one must consider that if a large merger of auto companies happens the auto makers may decide to cut the number of franchised outlets?
Nevertheless, this is an interesting time and there is always opportunity in chaos. So, if you are a smart investor and know the industry maybe you might be able to spot a smart investment. Think on it.
