Full Article - Renier Construction

COLUMBUS
THE CENTRAL OHIO BUSINESS AUTHORITY
APRIL 1, 2011
Byers is renovating its dealership
on South Hamilton Road at
Chrysler’s request to accommodate
Dodge products at the site.
COURTESY RENIER CONSTRUCTION
AUTOMOTIVE
| INSIDE REPORT |
Image
is
everything
Image is everything
WITH THE RECESSION over, the auto industry is adapting to
a new world view. One of the first orders of business? A directive
from manufacturers to dealers: Get the look of your house in order.
CC
BY DAN EATON | BUSINESS FIRST
JACK KUSTRON | FOR BUSINESS FIRST
George Kauffman of Byers Automotive Group said there’s a good
amount of give-and-take when a dealer works with a manufacturer on a remodeling project.
ar and truck sales continue to climb upward from the lows of 2008
and 2009, but the ripple effects of that rebound aren’t necessarily
all welcome.
It’s an wants
investment
thatthe
some
are back
reluctant
to
While no dealer
to wind
clock
to the
so soon after of
thean
crash
of the auto
marrecession, make
the combination
improving
market
and dealer networks culled
bytothe
downturn
has”
ere’sofa competition
mixed reaction
dealer
upgrades,
manufacturers pushing
dealers
to
improve
the
look
and
layout
of
said Bill Heifner, president of Renier Construction Corp. “Some say it’s time, others just want
their stores.
breathing
room after
few tough
years.
”
It’s an investmentsome
that some
are reluctant
toamake
so soon
after
Renier specializes in dealership construction
the crash of the autoand
market.
remodels and since 1989 has worked on
“There’s a mixedprojects
reactionfortonearly
dealerevery
upgrades,”
Bill Heifbrand onsaid
the market
to- B. Heifner:
day. One
client is theCorp.
Byers“Some
Automotive
Group
.
Renier Construction
ner, president of Renier
Construction
say it’s
time,
us, youroom
try toafter
be asacooperative
with the
others just want some“For
breathing
few tough years.”
Renier specializes in dealership construction and remodels and since
1989 has worked on projects for nearly every brand on the market today.
One client is the Byers Automotive Group.
s with work stoppages
“For us, you try to be as cooperative
with the manufacturer as you can,” George
Kauffman, Byers vice president said. “You
want to have a positive relationship.”
rail
lines
andgroup
highways
haveawfully
dramatically
The
dealer
has been
coopslowedlately.
or stopped car parts production
erative
Byers
just wrapped
a re-imaging
of
Spokesman
Ron Lietzke
said all North
its
Kia
dealership
in
Delaware,
is
in
the
America plants – including assembly
middle
of nearby
an upgrade
to its Chrysler
plants in
Marysville
and East Jeep
LibDodgeerty,
storeanonengine
Southplant
Hamilton
Roadand
anda
in Anna
transmission
operation
in Ford
Rusis in planning
for a remodel
of its
Point – This
remain
but
operationsells
in Delaware.
is onopen,
the heels
production
schedules
willToyotachange
of the 2009
completion
of a new
ose schedScion store
Delaware. may vary by day,
uleinadjustments
Ford, Lincoln, General Motors, Cadillac,
Chrysler, eToyota,
Volkswagencould
and range
Merdaily stoppages
cedes-Benz
all areper
among
pushfrom a few hours
shiftthe
to abrands
full day.
Ohio
is the hub
of Honda’s
ingCentral
dealership
re-imaging
programs.
e compaCOURTESY FORD MOTOR CO.
MOTIVATIONS
nyInemploys
more survey
than 13,500
in Ford wants a consistent design as new Lincoln dealerships are launched and others are remodeled.
a nationwide
earlierworkers
this year
Ohio, and its assembly plants turn out the
of 330 dealers by trade publication Automotive News, more than half said there is top-selling brands — made it an easier offered by Ford allowed them to take the
increased pressure to comply with image decision to invest $750,000 into improve- buyout and reinvest that into their Ford
upgrades.
standards. Ford, General Motors, Mer- ments.
“It needed a refresh. We were aware of
“For us, it boiled down to how bad we
cedes-Benz and Toyota were singled out
that,” he said. The site was home to four oth- wanted to fight for the brand,” he said.
as being the most demanding.
er dealerships in its history.
“Ford was our core.”
For Ford,
the recent
man said.
“But Ipush
alKauffman
said
there
The new Ford look includes more poltoways
improve
the
look
and
thought it should
were
multiple
negotiations
ished
steel and improved signs.
feel
of
Ford
and
Lincoln
look like a Ford dealership. To me,
alwaysin
between the manufacturer
Like Byers, the Bob-Boyd auto group is
dealerships
is ait’schange
made sense. You drive
and dealer before the final in the midst of multiple projects at the same
mentality.
down
street much
and youlet
plans were settled. Byers time.
“Theythepretty
know what’s a Wendy’s
didn’t object to any of the
It planned to open a new Fiat dealership
the dealers do their own
and what’s a McDonprinciples, he said, but it April 1 on the city’s east side — the first
thing, outside of posting the
wanted to do certain things, in Columbus — and is moving its Lincoln
logos,”
Kauffman
Kauff
man saidsaid.
the “But
Bysuch as the dedicated areas dealership from Scarborough Boulevard,
I ers
always
thought
it
should
philosophy toward
upgrades
is straightforfor each product line, on a next to the Fiat site, to Billingsley Road in
look
like a Ford
dealership.
ward
it isalways
willingmade
to
smaller scale than Chrysler northwest Columbus.
To
me,—it’s
investYou
in brands
that the
originally asked for.
The combined cost of the projects, being
sense.
drive down
the
manufacturers are invest“There was good give- handled by Columbus-based Ricop Constreet and you know what’s
ing in. Kia, for instance, is
and-take,” he said.
struction Co., is almost $2 million, said Gena aWendy’s
and—what’s
Mchot seller
it wasa the
SPURRING
INVESTMENT
eral Manager and Co-Owner Bill Dawes.
Donald’s.”
seventh best selling brand
The
arrangement
isn’t
a
Fiat was the easier investment decision of
Kauffman
said
the
Byers
in Central Ohio last year
— so adding
moreupgrades
service
one-way street. Manufac- the two, he said. The company was excited
philosophy
toward
to the dealership
Bill Heifner | president of
turers often dangle carrots to add the products to its line-up and has
isbays
straightforward
— it is
Renier Construction Corp.
in front of dealers including spent between $500,000 and $1 million to
willing to invest in brands
Chrysler’s 2009 axing
financial assistance, better convert the old 11,000-square-foot Distincthat the manufacturers are
investing in. Kia, for instance, is a hot seller inventory allocation and discounted pur- tive Trucks building into a Fiat showroom
and service center.
— it was the seventh best selling brand in chase prices.
Byers’ Delaware Ford dealership also
Dawes said the service center will work
Central Ohio last year — so adding more
service bays to the dealership was a no- was overdue for a new look, Kauffman with all makes and models and, since it is
said, but the driving force behind that next to the old Bob-Boyd Lincoln space,
brainer.
Chrysler’s 2009 axing of almost 800 U.S. investment was Byers’ decision to exit the could pick up east-side Lincoln customers
dealerships included Byers Dublin Dodge, Lincoln brand. Ford, pushing to reduce the who may not want to commute to the new
but while the group lost the physical loca- number of Lincoln dealers in urban mar- Lincoln dealership.
The new Lincoln location is a $1 million
tion, it moved the Dodge and Ram products kets, offered buyouts to five area dealerto the Chrysler Jeep store on South Hamil- ships to consolidate the market for Bob- investment. With the new site, which preBoyd Lincoln.
viously was Krieger Lincoln, comes new
ton Road.
Kauffman said Byers wasn’t eager to get equipment and furniture and a new look
Kauffman said being able to do that
— Dodge and Ram trucks are Chrysler’s out of the Lincoln business, but the deal and feel.
‘Toyota is more
functional than
Lexus. It has the
TVs, a modest
beverage area.
It’s meant to
relax customers.
It’s comfortable,
but not palatial.’
| AUTOMOTIVE |
APRIL 1, 2011 |
21
gns more interactive
s that
Dawes
stomer
typical
egin in
having
luxury
Ford’s
k from
he cusas the
t in the
(Ford),”
e lock-
oviding
but de-
nvolved
ce 1989
mpany
of that
g work
ket to-
etween
dealero show-
e,” Heifdealer-
isplays
s more
ng cuse buyer
o or an
on the
s, often
p their
elivery
esigns.
t pushonda is
white.
lavish
at their
resemstomer
es and
“It’ll have all the touch-points that speak
to the luxury experience,” Dawes said.
“There will be an improved customer
al Motors
Corp.
’s decision
to eliminate
the
lounge,
work
stations,
a cafe
area, typical
Saturnyou’re
brandseeing
left three
his dealerships
things
theseofdays.”
without a brand. He eventually signed on
Renovations
to begin
in
with
Mitsubishiareforexpected
two locations,
while
June.
the third is operating as a used car store
Lincoln
has
struggled
as electric
a brand,car.
having
and
will off
er the
Wheego
just redone our
Saturns
within
the
lost“We’
its donce-leading
status
among
luxury
last fimore
ve years,
” he10said.
“Thago,
ey were
lines
than
years
but already
Ford’s
in good shape.
” its dealer network from
decision
to shrink
decor the
changes
sixSign
area changes
stores toand
onesome
broadened
cuswere necessary in the switch, but other
tomer
base
for
Bob-Boyd
and
was
the
improvements weren’t needed.
clincher
for
the
dealership
to
invest
in
the
Carpenter’s Nissan/North store went
new
space.
through
its last re-imaging six years ago.
“We’re
compliant,
” he said.
hope
“We
talked
big picture
with“We
(Ford),”
that’ll said.
be good
for thoughts
another were
five or
six
Dawes
“Their
lockyears.
” ours.”
step
with
He also said the company is provid614-220-5462 | [email protected]
ing financial assistance for the project but
declined to say how much.
CLASSY AND COMFORTABLE
Renier Construction has been involved
in auto dealer image programs since 1989
when it did Lexus’ rollout. The company
has overseen three generations of that brand
image, while doing re-imaging work for
nearly every brand on the market today.
Heifner said work is split evenly between
domestic and foreign brands.
Customers spend less time at dealerships
shopping than they used to, so showrooms
are getting smaller, he said.
“They’re researching prices online,”
Heifner said. “If they’re coming to the dealership, they’re there for a test drive.”
There are more interactive displays and
touch-screen kiosks. There is more emphasis on creating and improving customer
delivery areas. In the past, the buyer would
get the keys and directions to or an escort
to where the car is parked on the lot. Now,
brands want delivery areas, often inside,
where customers can pick up their purchase.
Both Dawes and Kauffman said delivery
areas have been part of their new designs.
Kauffman said one of the biggest pushes
BILL TIJERINA | FOR BUSINESS FIRST
Bill Dawes, left, Mary Beth Culbertson and Bobby Dawes of Bob-Boyd are spending between
$500,000 and $1 million in improvements to add the Fiat line to their east-side dealership.
is for distinct brand colors. Honda is blue brand is entering a new sign program.
and white. Toyota is red and white. Chrysler
He said Hyundai hasn’t been aggressive
is dark grey and blue, etc.
with appearance demands.
To no surprise, luxury dealers lavish
“They’ve been conservative on their
more on the look, feel and service at their image requirements,” he said. “I think they
dealerships.
remembered when they entered the market
Lexus dealerships, for example, resem- in 1986 with extravagant demands. They
ble a classy study more than a customer ended up with a lot of mausoleums.”
waiting area with dark wood finishes and
Tom Carpenter didn’t have any choice in
fireplaces.
making changes at his dealerships. General
“It’s a long way from the old days,” Heif- Motors Corp.’s decision to eliminate the
ner said.
Saturn brand left three of his dealerships
Some of those features that were stan- without a brand. He eventually signed on
dard in luxury operations
years ago with Mitsubishi for two locations, while
PEDIENT Cfurniture,
C ATIONS the third is operating as a used car store and
— EX
comfortable
OMMUNIflat-screen
televisions, a generally more welcome will offer the Wheego electric car.
atmosphere — have crept into the down
“We’d just redone our Saturns within the
market brands.
last five years,” he said. “They were already
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“Toyota is more functional
than Lexus,” in good shape.”
he said. “It has the TVs,
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customers.
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improvements weren’t needed.
Keith Dennis, president
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in line with the brand’s
image require- that’ll be good for another five or six
ments for store layout and
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Reprinted for web use with permission from Columbus Business First. ©2011, %#"&!#$#"!
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