Link: Coach Saban and the proposed Mercedes-Benz dealership

[Catfish]

Nick Saban to be subpoenaed as part of suit over proposed Irondale Mercedes-Benz dealership

http://blog.al.com/spotnews/2014/02/nick_saban_could_be_subpoenaed.html

It won't be 'Nick Saban Mercedes-Benz,' but partner says Irondale dealership will fulfill coach's dream

http://blog.al.com/spotnews/2014/02/it_wont_be_nick_saban_mercedes.html

Talk amongst yourselves.

 

[bamachile]

Not much to see. A nearby dealer believes it will affect his business and is suing to stop it. CNS isn't accused of any wrongdoing. I did like this line, though:

"Every car dealer I know wants to be a coach," Nick Saban said... "I always wanted to be a car dealer."

 

[RTR91]

CNS hasn't even opened the dealership yet, and he's already making Crown's arse quit.

Looking forward to seeing his ads, though. "Not sure how to buy a car? At Irondale Mercedes-Benz, we have a process for that! Come learn how!"

 

[CrimsonNagus]

I don't understand this lawsuit, are you no longer free to open a business in this country if a similar business is nearby? So, instead of learning to compete, you just sue to keep competition away. The dealership bring the suit sounds like someone I'd never want to buy a car from.

 

[bamachile]

I don't understand this lawsuit, are you no longer free to open a business in this country if a similar business is nearby? So, instead of learning to compete, you just sue to keep competition away. The dealership bring the suit sounds like someone I'd never want to buy a car from.

Dealerships are something of a covenant with the manufacturer. You'll have to get one of our resident legal minds to explain it fully, but there are expectations from both sides.

 

[DzynKingRTR]

I don't understand this lawsuit, are you no longer free to open a business in this country if a similar business is nearby? So, instead of learning to compete, you just sue to keep competition away. The dealership bring the suit sounds like someone I'd never want to buy a car from.

apparently not

 

[Catfish]

Dealerships are something of a covenant with the manufacturer. You'll have to get one of our resident legal minds to explain it fully, but there are expectations from both sides.

If I'm not mistaken, dealerships are franchises and there are stated repsonsibilities and restrictions placed on both parties in the agreement. In most cases, one of the restrictions on a company granting the franchise (Mercedes-Benz, in this case) is that they won't grant another franchise in a certain area. It could be within a stated radius, city, county, metropolitan statistical area or sometimes an entire state. The typical area depends a lot on the type of business. The restricted area for a fast food franchise is going to be smaller than a car dealership. But, you'd be crazy to buy any kind of franchise without some defined market area. It would suck to open a McDonalds and a month later have the McDonalds corporate grant a franchise to someone on the same block you were on.

I have no idea what Crown's market area is defined as in thier agreement, but I wouldn't be happy if I were them, either. The market for MB vehicles is fairly small in comparison to less expensive brands and I'm sure they're not looking forward to the competition.

 

[Catfish]

Does anybody else in the Bham area hate the Crown Auto radio spots? The guy sounds like he's on Thorazine. They remind me of relaxation tapes that are supposed to help you sleep or meditate. Every time I hear about a traffic accident caused by somebody falling asleep at the wheel, I wonder if they were listening to a Crown radio spot when it happend.

 

[RTR91]

If I'm not mistaken, dealerships are franchises and there are stated repsonsibilities and restrictions placed on both parties in the agreement. In most cases, one of the restrictions on a company granting the franchise (Mercedes-Benz, in this case) is that they won't grant another franchise in a certain area. It could be within a stated radius, city, county, metropolitan statistical area or sometimes an entire state. The typical area depends a lot on the type of business. The restricted area for a fast food franchise is going to be smaller than a car dealership. But, you'd be crazy to buy any kind of franchise without some defined market area. It would suck to open a McDonalds and a month later have the McDonalds corporate grant a franchise to someone on the same block you were on.

I have no idea what Crown's market area is defined as in thier agreement, but I wouldn't be happy if I were them, either. The market for MB vehicles is fairly small in comparison to less expensive brands and I'm sure they're not looking forward to the competition.

This is the biggest thing. If there's only one MB dealership in the city, the value of one in Birmingham stays higher than it would if there's multiple dealerships.

 

[Catfish]

The best thing about this thread is that I've got Mercedes ads plastered all over Tidefans. Not a T03na1L Fungu5 ad to be found anywhere! And, there was great rejoicing.

 

[Crimson1967]

If Crown's franchise agreement with Mercedes says there won't be another Mercedes dealership within a certain area and Saban's place is inside that area, I'd say they have a valid lawsuit. But the suit needs to be filed against Mercedes, not Saban and his partners.

 

[RTR91]

If Crown's franchise agreement with Mercedes says there won't be another Mercedes dealership within a certain area and Saban's place is inside that area, I'd say they have a valid lawsuit. But the suit needs to be filed against Mercedes, not Saban and his partners.

It is filed against Mercedes. Saban is only subpoenaed to appear in court.

 

[CajunCrimson]

He's crazy if he doesn't give each new owner a mini crystal football keychain....And an autographed football waiting in the backseat

 

[Bama Reb]

"Every car dealer I know wants to be a coach," Nick Saban said... "I always wanted to be a car dealer."

If he owns and manages his dealership like he way he coaches football (and why wouldn't he?) there's no doubt that he would have the most dedicated and productive sales force that the automotive industry has ever seen.