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Home Cars

Luxury brands cutting dealers some slack

March 9, 2020
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Last year, Porsche revealed an ambitious retail concept, referred to as “Gen 5,” that expands the dealership from showroom to experience center and hangout space.

The 45,000-square-foot concept store in Palm Springs, Calif., is designed around individual content areas that offer visitors a deep dive into various Porsche models.

The store, owned by indiGO Auto Group of Houston, features an E-Performance section that highlights electric powertrain technologies and charging infrastructure. Another section features vintage Porsches and showcases the company’s growing classic restoration business.

Factoring in tweaks to the design, constructing such a next-gen Porsche store format could cost up to 10 percent more per square foot than one of the brand’s current “Gen 4” stores, according to indiGO Auto Group CEO Todd Blue.

The new Gen 5 design is expected to roll out across Porsche’s retail network over a decade. The automaker said it will work with individual dealerships on the timing of the upgrade, based on market size, sales volume and when the store was last updated.

Robert DiStanislao, president of Porsche of the Main Line in Newtown Square, Pa., is building a Gen 4 store because at the time the plans were made, Gen 5 had not yet been released.

“Fortunately, Porsche allowed us to choose whether to move to Gen 5 or stick with Gen 4,” said DiStanislao, who also is a member of the Porsche Dealer Board of Regents.

DiStanislao remains wary of the latest store design concept, referring to it as an “unproven concept.”

“If dealers had their druthers, they are going to stick with Generation 4, because it is an efficient dealership layout,” he said. “It’s easy to get cars in and out. There’s a lot of utility because there’s open showroom space. The shop is directly behind the showroom. There’s an underground storage area.”

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