I don't think I'm going to comment anymore than I have already bout the status of Kymco USA. Anymore would be unprofessional.
What I will say is that the crew at KUS is all new. It's a steep learning curve. They are coming around but it's painful at times.
As far as obtaining a dealership for kymco (it's a dealer agreement, not a "franchise" as some would call it. There is a difference) The first thing a Dealer Development Department, or the DSM (District Sales Manager), does is determine the need in the area or an Open Point in a specific area. This is done by crunching numbers for a metro area to see if the point is viable. Kymco, or any other OEM, is not going to place a dealer in an area that has no potential. Also, they will consider adding dealers to an area where the current dealer is under performing, based on potential. There is also the New Motor Vehicle Board that regulates distance between dealers. In most states it's 10 miles. In a densely populated area such as Los Angeles it's been done less than 10. If an OEM decides to put in a dealer closer than the minimum, the current dealer must be notified and has the right to protest the placement of a new dealer. There are requirements by all OEM's to become a dealer and one is the establishment of a Commercial Credit Line from a participating bank. Every OEM has a required minimum. For example, Yamaha may be 750K to 1 Mil where as Kymco can be 75 to 100k. The Flooring Line is used by the dealer to purchase units for stock or for immediate sale. This allows the dealers to take advantage of offers such as Free Flooring where there are no interest charges for a specific amount of time. It also allows the dealer to stock heavier and take advantage of sales allocation programs where benefits are packed in based on the amount of units purchased. This allows the dealer to possibly sell (turn the inventory) the inventory without paying interest or paying upfront for the inventory. Because the dealers have, hypothetically, a 100K line, doesn't mean the must keep 100K worth of inventory at all times. The dealers will work with the DSM to keep the proper amount of inventory in stock at all times and also keeping a proper representation of the model line. For example, some areas inherently sell more 49cc scoots due to DMV licensing requirements or lack of. Florida comes to mind as they have the "Moped" rule, where as in California you need a M1 license to ride any size scooter no matter what the cc. 49cc sales in California are very slow due to the licensing requirements, dealers stock very few if any. Although, "cult" bikes like the Ruckus 50 are very popular. Go figure.
New dealers must have a proper building with Showroom, parts area and service area. Some dealers start off maintaining the requirements but then fade in some areas. The OEM will notify the dealer of the breach of the dealer agreement and the dealer will need to resolve in a certain time frame. Some OEM's are very soft with regard to this as it is VERY difficult and costly to cancel a dealer agreement. It's easy to put a dealer in but difficult to take one out.
There are a few other requirements by Kymco but its nothing compared to what Yam, Kaw, Suz, etc. require
I could talk about OEM/Dealer relations and best practices for hours but that's all I have right now
CJS
