The Lotus Cars Community banner

1 - 10 of 10 Posts

·
Registered
Joined
·
1,126 Posts
Discussion Starter #1
Gang,

Anyone have a sense of how Lotus USA is deciding allocations for new dealers (such as Galpin or Desert European, etc.)?

Thanks,

Chris
 

·
Forum Founder
Joined
·
29,081 Posts
They use the same formula for all dealers. Did the new dealer sell many Esprits? Probably not. That will lower allocations.
 

·
shay2nak
Joined
·
25,068 Posts
please any info! My car swings in the balance!
 

·
Registered
Joined
·
4,985 Posts
Disclaimer: I have my deposit at DE so I may not be thinking clearly here.

Disclaimer: I have a deposit on an Elise. I know I'm not thinking clearly.:)

Mr. Lotus Guy: Hello, new dealer. Welcome to the Lotus family. We're excited and pleased that you will now be representing us in your area. As you know, we at Lotus are in the process of re-introducing our brand to the US market. We believe that the Elise, with it's tremendous enthusiast appeal and relatively low price is the ideal car to raise awareness of the spirit of our company. You, as a new dealer, are very important to us. We cannot grow to meet our long-term goals without a strong, geographically diverse dealer network. We understand that adding our brand is costly to you, as you've had to train techs, build showrooms and stock spares along with all the other responsibilities that a dealer has to a manufacturer. We intend to make this relationship worth your while.

Now let's get down to business. I have a formula here that determines how many cars you will receive this year. Let me ask you this question: How many Esprits did you sell last year?

New Dealer: WTF? None, of course. I wasn't a Lotus dealer!

Mr. Lotus Guy: Oh dear. Not a good performance at all. We wish you would have tried harder. I suppose you can have 10 cars. Good day!

New Dealer: WTF?
 

·
shay2nak
Joined
·
25,068 Posts
andy, you forgot...

new dealer's customers: WTF?
 

·
Forum Founder
Joined
·
29,081 Posts
shay2nak said:
andy, you forgot...

new dealer's customers: WTF?
On the other hand, Lotus said all along that allocations would (to some extent) be based on prior sales of Esprits.

I never paid that much attention to that point, so I certainly can understand how someone else would not consider that when getting on a list at a new dealer. It is unfortunate this entire method of a crapshoot to find out your dealer's allocation after you got on a list.

I really hope some of us put some effort into compiling an estimated allocation chart for dealers based on their early numbers. That will not be that easy or accurate since some cars seem to be shuffled around between dealers. But it will be a big help I think in answering questions for new people, and for people that don't understand why with a relatively low (under 30) number, they have no build information on their car.
 

·
Registered
Joined
·
4,985 Posts
Randy Chase said:
I never paid that much attention to that point, so I certainly can understand how someone else would not consider that when getting on a list at a new dealer. It is unfortunate this entire method of a crapshoot to find out your dealer's allocation after you got on a list.
I actually did consider that point and made the hopeful guess that new dealers would be judged based on their local market as well as whatever commitments they were willing to make to Lotus. I don't see the point in wooing new dealers and then dinging them for not being a dealer in the past. I'm also kind of surprised at the gap in allocations between the high and the low end. I don't see how as few as ten cars/yr makes it worth training staff, stocking parts and etc for a car with supposedly such low margins. But I also concede that without seeing the business case for any of these decisions it's impossible to fully understand them.

The good news is that no matter what DE's allocation is, they've at least received four customer cars. The dealer I left to grab this better spot in line has gotten none yet.
 

·
Registered
Joined
·
670 Posts
It is not clear to me yet how allocations have been done. I think it's too soon. Lotus is still too unorganized for us to assume there is anything of significance in their actions to date. Also, they have yet to take any new orders from those expected "large" allocation dealers. How can that be ?

Prior to being involved with Lotus lists I had some experience with MINI lists. MINI gave every dealer the same number of cars.
End result of this was cars sitting on lots in Charlotte and DesMoines and Fargo despite discounts to MSRP. In Los Angeles you either paid a $3000 markup and waited 4 months or paid MSRP and waited 18 months.

Lotus apparently wasn't watching or didn't learn a thing.
In my opinion allocation should be based solely on population of the area. Number of Esprits sold means nothing, If a dealer in their network was a failure because of poor past sales the relationship should be terminated, rather than continue to punish customers who have the unfortunate circumstance of living near a bad dealer. How can Lotus possible punish a new dealer and his clients just because he has no Esprit track record ? Makes no sense at all. Lotus' muddy thinking in this regard has left us with no dealer at all in Los Angeles. Members of this board think that when Galpin in LA does become a dealer they shoud get 0 cars because it might take away rfom your dealer, or only a couple a month because they have no Esprit sales. How absurd, but Lotus is just backward thinking enough to probably go along with that.

In the largest, or second largest met area in the country, with affluence and perfect year round weather and great roads bring em on, 3 cars per month sounds perfect.

Steve
 

·
Registered
Joined
·
5,311 Posts
Sownman,

Normally I'd agree with your thoughts on fair allocation, but again this is Lotus and for nearly a decade they have been selling about 100-150 Esprits annually out of roughly 35 dealers.

Some dealers in major metros sold 1 car, others in much smaller markets sold 10 in a year. Sales of the Esprit was less driven by population, and more by the support/energy a dealer gave the marque/car.

When the Elise was launched in the EU with great success the dealers noticed and begged for the car to come to the US. Many hung onto the marque, doing the bare minimum to retain the Lotus brand waiting for the Elise.

So, in fairness LCU decided to "reward" the dealers that supported them in the times when things were thin. Thus initial allocation was based to a great extent on Esprit sales.

Having said that, it also follows that once past the initial allocation that typical allocation methodology would be used.
 

·
Registered
Joined
·
788 Posts
IMO it only makes sense for Lotus USA to reward existing dealers that kept it alive these past years by selling Esprits at least initially. Once the factory gets rolling with its production then of course it is going to allocate more to new dealers in populated areas like LA; but you don't bite the hand that has feed you for the last couple of decades.
 
1 - 10 of 10 Posts
Top