Our client was a large auto group that operates franchises that include Mercedes-Benz, Porsche, Lincoln-Mercury, Mazda, Honda, Ford, Chrysler, Dodge, and Jeep in markets around the country.
Our client was awarded a desirable luxury vehicle franchise in one of the largest metropolitan areas in the United States. The manufacturer provided our client with a market report that suggested sites away from the growing population and high income areas. The group retained Anderson Economic Group to conduct a thorough site-selection analysis, including a site visit, analysis of prospective sites, demographic trending, past auto sales analysis, and projected sales for select locations.
Our analysis was conducted in three stages, each adding additional information and revising the list of potential candidates. Sites were screened based upon geography, road network, population, household income levels, projected growth in income-qualified households, luxury vehicle registrations in the nearby area, and the location of competitive dealerships and their statutory protest zones.
Basing our findings on the location of income-qualified buyers, we recommended a final cut of two prospective sites. One was selected on the basis of factors including income growth, population growth, historical sales of luxury vehicles, and the impact of competitor locations.