If it means getting the same car with more options, delivered, and for less bottom line cost I am all for buying my new car on the internet. I'd like to the Toyota Prius - I will defintely go with the Volt!

I would rather just see a better experience over all. Maybe set prices, and a standardized experience, like the Olive Garden. We have all seen the quality revolution take place. At the current rate of improvement, there aren't going to be many problems to fix. We have also seen the Safety Revolution; soon, cars are going to come with 128,348,238 airbags. What else is there going to be to compete with? The dealership experience, Price, and Style. The experiencing thing is already happening, starting with the closure of small dealerships from the big three. Soon, I think we will see better looking showrooms; as well as: friendlier, more knowledgeable, and less intimidating sales people.

You're right on target, Joel. My Father used to be a dealer and the times have changed. The brand experience happens first in the dealer, then in the car, and when you have your car serviced. Who will be the first dealer or automobile company to create a new dealership for this century. They should all read Pine and Gilmore's The Experience Economy and then get to work.

Reinventing auto dealearships is a great idea. Now that GM is owned by the government, I'm afraid closing dealerships during the reinvention process would conflict with political goals, making reinvention unlikely. http://ow.ly/jW4P

Very solid insights Joel... Thank you. I'd also add that the push towards online vehicle sales and customer interface helps to to build trust with consumers as GM and the global auto industry prepare for a coming age of 'mobility services' that transform the driving experience. In the Age of Electric Vehicles-- Software will play a much larger role in the revenue stream of automakers and help them transition from profits on 'new cars' to 'profits per mile'. The vision is to personalize the performance based on the driver using software that alters steering, braking and acceleration via changes to the 'drive by wire' systems. Customize the driving experience based on location or activity/task. Whatever 'apps' might be built for GM vehicles in 2013-17 that will certainly be bought and sold virtually via OnStar and/or eBay. So let's plant a seed for that type of mobility service demand. The other long view strategy is to shift dealerships from the 'new car' lot model to an aftermarket upgrade paradigm as EVs begin to hit the marketplace and enable more modular enhancements. So customers might stop by 'dealers' once a month for new 'skins' (et al) rather than once every few years for a new car. I think GM is on the right track... and your post was spot on! Just some extra two cents! Garry G

great comments that add to the core idea. How do we get auto industry to engage with our collective thinking? this is their time to reinvent!

GM's first obstacle will be the franchise system, because you'll have to do a lot of cajoling or succeed with a major case study to get dealers to pay for this kind of innovation. I've worked for manufacturers and retailers both in this category, being in advertising and sales promotion, and you're lucky to get a "car-topper" display up, let alone anything more ambition in the way of trade dress. This, of course, just points to why dealerships that have delivered a truly friendly and immersive experience have succeeded.

The article touches on it, but IMHO, though, the foremost obstacle to be overcome is the sheer crassness of the "sales" experience. The human factor needs to be dealt with; there's a level of inauthenticity and mercenary crapitude there so endemic, in many dealerships, that it would overwhelm any design innovation. Flush the old-line hard-sell mentality, outlaw the "check with my manager" and financing/fees techniques, et al, and you've gone a long way toward renewing the experience for the better.

from the author: part two of this blog can be found here: http://blog.joelrubinson.net/2009/08/can-auto-dealerships-be-reinvented-...
it is an interview with an auto industry expert about dealer franchise laws, which are federal and state laws that represent huge barriers to change.
Joel