STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS
J. O. STONE BUICK, INC., and ) GENERAL MOTORS CORPORATION, )
)
Petitioners, )
vs. ) CASE NO. 88-5663
) BAYVIEW BUICK GMC TRUCK, INC., and ) DEPARTMENT OF HIGHWAY SAFETY AND ) MOTOR VEHICLES, )
)
Respondents. )
)
)
RECOMMENDED ORDER
Pursuant to notice, the Division of Administrative Hearings, by its duly designated Hearing Officer, James E. Bradwell, held a public hearing in this case on January 8-12, 1990, in Tallahassee, Florida.
APPEARANCES
For Petitioner: Mark Herron, Esquire
Jeffrey H. Barker, Esquire MOFFITT HART & HERRON, P.A.
216 South Monroe Street, Suite 300 Tallahassee, Florida 32301
For Respondent: Edward W. Risko, Esquire
General Motors Corporation New Center One Building 3031 West Grand Boulevard Detroit, Michigan 48232
and
Vasilis C. Katsafanas, Esquire RUMBERGER KIRK CALDWELL CABANISS
BURKE & WECHSLER
11 East Pine Street Post Office Box 1873 Orlando, Florida 32802
For Respondent: Daniel E. Myers, Esquire
Walter E. Forehand, Esquire FOREHAND & MYERS, P.A.
402 North Office Plaza Drive Suite B
Tallahassee, Florida 32301
STATEMENT OF THE ISSUES
The issue for determination is whether the presently licensed franchise dealers (Buick) are providing adequate representation in the community or territory. 1/
BACKGROUND AND PRELIMINARY STATEMENT
By letter to the Department of Highway Safety and Motor Vehicles (Department) of October 28, 1988, Respondent, Bayview Buick GMC Truck, Inc. (Bayview), notified the Department that it protested the granting of the application for license to Petitioner, J.O. Stone Buick, Inc. (Stone Buick) to sell new Buicks at 1035 Highway 19 South, Palm Harbor, Florida. By letter of November 9, 1988, the Department requested of the Division of Administrative Hearings that a hearing be held to determine issues pertinent to Florida Statutes Section 320.642. Among the prehearing rulings, the undersigned Hearing Officer ruled that Florida Statutes Section 320.642 (1987) rather than amended section 320.642 which became effective October 1, 1988, would apply to the hearing, by order of April 21, 1989.
At hearing, Petitioner, Stone Buick, presented the testimony of Mr. Thomas
Kelley and Mr. J.O. Stone, owners of J.O. Stone Buick, Inc.; the testimony of Mr. Benjamin Withers, an expert in urban planning; and Exhibits 1-5, of which 1, 3, and 5 were admitted into evidence. Petitioner, General Motors Corporation (GM), presented the testimony of Mr. James Anderson, an expert in dealer network analysis, and Exhibits 1-103, all of which were admitted. Respondent, Bayview, presented the testimony of Mr. Ronald M. Salhany, president of Bayview Buick GMC Truck, Inc., and Dr. Richard M. Mizerski, an expert in economics, marketing, and advertising; and Exhibits A, B, 1-62, 58A, 64-109, all of which were admitted into evidence.
FINDINGS OF FACT
J.O. Stone Buick, Inc. (Stone) filed an application with the Department seeking to relocate its dealership from 1133 Cleveland Street, Clearwater, Florida, to 1035 U.S. Highway 19 South, Palm Harbor, Florida.
Stone's current location and proposed location are both within an area described by Buick as the St. Petersburg-Clearwater Multiple Dealer Area (Clwtr- MDA), basically consisting of Pinellas County and the Western half of Pasco County. 2/ In addition to Stone, Respondent, Bayview Buick, Inc. (Bayview) and Scott Buick are included in the Clwtr-MDA.
Five Buick dealers, called fringe dealers, surround but are not included within the Clwtr-MDA.
Although 87% of sales by Clwtr-MDA dealers are registered within the MDA, none of the five fringe dealers comes close to the minimum requirement that at least 30% of their sales be registered to customers within the MDA to be considered part of any interconnected shopping area within the MDA. Royal Buick in Tampa is highest with only 6.5%. Accordingly, areas occupied by fringe dealers are excluded from any definition of the community or territory in this case. 3/
The Clwtr-MDA consists of three AGSSAs, each occupied by a Buick dealer. The acronym AGSSA stands for Area of Geographic Sales and Service Advantage and represents the area surrounding a dealer location where the dealer
enjoys a competitive advantage over other dealers of the same line-make due solely to geographic location. 4/ Stone's current (Clearwater) and proposed (Palm Harbor) locations are within AGSSA 1; Scott Buick (St. Petersburg) is within AGSSA 2; and Bayview (Port Richey) is within AGSSA 3. 5/
As consumer behavior is used to determine whether areas outside the MDA should properly be considered as part of the community or territory, it can also be used to verify whether area within the MDA form a single connected market, and therefore, constitute the community or territory.
Consumer behavior data shows that Bayview is responsible for 82% of the Buick registrations in AGSSA 3. Consequently, it is not possible for any other dealer or combination of dealers to capture the minimum 30% to be considered part of the AGSSA 3 market area. Such consumer behavior is more comparable to an isolated or unconnected market.
Similarly, Stone (AGSSA 1) and Scott (AGSSA 2) are also responsible for a higher than normal percentage of Buick registrations within their respective AGSSAs, again more comparable to isolated rather than connected markets (58% and 60% respectively).
Additionally, of Stone's sales nationwide, 45.3% were registered in AGSSA 1. However, of Scott's (AGSSA 2) sales nationwide, only 9.7% were registered in AGSSA 1; and of Bayview's (AGSSA 3) only 13.2% were in AGSSA 1. Thus, while Stone alone exceeds 30% within AGSSA 1, Scott and Bayview together do not approach that level, here again indicating AGSSAs 1, 2, and 3 do not form a single connected market.
Furthermore, 58% of AGSSA 1 Buick consumers went to Stone (AGSSA 1) but only 14% went to Scott and only 16.7% to Bayview. 6/
Virtually every dealer in the MDA, except Stone, is located on Route 19, forming three distinct shopping areas for Buick, one in AGSSA 1 and one each in AGSSAs 2 and 3. 7/ The proposed Palm Harbor relocation site is within the AGSSA 1 shopping area, and is a considerable distance from Bayview (17.1 miles) and Scott (13.7 miles).
That AGSSA 1 is separate and distinct is further confirmed by the fact Bayview is unable to penetrate south of the Pasco County line (border between AGSSA 1 and 3) and neither Stone nor Scott are able to penetrate AGSSA 3. 8/
Therefore, based upon analysis of consumer behavior, AGSSA 1 is accepted as the appropriate community or territory for this case. Alternatively, AGSSA 1 is an identifiable plot within the Clwtr-MDA.
As a starting point for developing a standard against which to evaluate the dealer network performance in the community or territory (AGSSA 1), national average presents an extremely conservative measure since it includes adequately, inadequately and non-represented markets. 9/
Unique characteristics of the community or territory (AGSSA 1) and the MDA, over which the dealer network has no control and which distinguish it from the nation, however, may explain why performance in an area deviates from the overall national average, making it too high or too low as a minimum standard for measuring network performance. 10/
Generally, the types of vehicles consumers in a given area prefer, independent of brand, is a reflection of all demographic and lifestyle characteristics that may impact their auto purchasing decisions. The influence of these characteristics on what consumers in a given area prefer may be determined by ascertaining the relative popularity of various vehicle types, independent of brand, compared to their popularity nationally. By calculating for differences between the relative popularity of various vehicle types, unique characteristics, over which the dealer network has no control, may be accounted for.
Buick arranges vehicles into size/price classifications, including subcompact, small sport, compact, mid-size, large, large luxury, and sport luxury. R.L. Polk & Co., an authoritative source for vehicle registration data in the automobile industry, categorizes registration data according to these classifications which are appropriate for use in this case.
Compared to the nation, subcompact cars are relatively unpopular in the community or territory (AGSSA 1) and the MDA, while "large" and "large luxury" cars tend to be more popular: subcompact cars make up 32.9% of the industry nationally but only 23.1% of the industry in the community or territory (24.5% in the MDA); conversely, large and large luxury cars respectively make up 8.5% and 10.1% of the industry nationally but 13.8% and 16% of the industry in the community or territory (14.1% and 14% in the MDA).
On average, Buick performs better among consumers preferring large and large luxury vehicles and less well among consumers preferring subcompact or compact vehicles. 11/
Quantitatively, unique characteristics in the community or territory (AGSSA 1), as reflected by the types of vehicles in the community or territory (AGSSA 1) that consumers prefer when compared to the nation, results in an overall minimum expectation for Buick of 6.87% or 121.9% of the national average. Similarly, after accounting for unique characteristics in the larger Clwtr-MDA as compared to the nation, the minimum reasonable expectation for Buick in that area is 6.79% or 120.7% of the overall national average. Consequently, due to differences between the community or territory (AGSSA 1) and the MDA when compared to the nation, the overall national average, unadjusted to account for these differences, is an inadequate measure of the network's performance.
Data reflecting what consumers actually did is more accurate in measuring market performance than data estimating what consumers might do based upon select demographic variables. The segment popularity analysis reflects actual consumer behavior based upon any and all influencing characteristics or conditions as opposed to predicting what consumers might do based upon limited demographic factors. However, demographic information may be used to confirm conclusions drawn from actual consumer behavior.
Based upon Buick's penetration in various age categories and after calculating for differences in age distribution between the community or territory (AGSSA 1) and the nation and the Clwtr-MDA and the nation, Buick should expect 139.0% of national average in the community or territory (AGSSA 1) and 142.10% of national average in the MDA. Thus, differences in age distribution confirm the reasonableness of expected penetration based upon segment popularity.
Although a similar calculation based on income as the sole factor suggests Buick penetration should be lower than the expected penetration derived from segment popularity, other information indicates consumers in the community or territory (AGSSA 1) have greater than average wealth when compared to the nation or the MDA (Nation 99,377; MDA 117,627; Comm. Terr. 133,705). (GM Exs.
22 through 25.)
This seems to confirm the community or territory (AGSSA 1) is populated by retired individuals without "income" as such, but with accumulated wealth and buying power. This is further confirmed by noting that regardless of an apparent lack of income, the community or territory (AGSSA 1) consumers are nevertheless buying the higher priced large and large luxury cars in significantly greater proportions than in the nation. Thus, while demonstrating that demographic variables can be misleading, there is no reliable indication that the expected penetration calculation is unreasonable.
The existence of census tracts within the community or territory (AGSSA 1) and MDA which meet or exceed expected penetration further confirms that it is a reasonable minimum standard to measure the performance of the dealer network.
Furthermore, a segment popularity analysis reflects that there are no unique characteristics distinguishing census tracts that exceed expected penetration from census tracts below expected penetration that could account for the difference in penetration. Indeed, if Buick were represented in the community or territory (AGSSA 1) at the same level as in the "gain" tracts, it should expect 8.21%, well above expected penetration of 6.87%. 12/ This confirms that expected penetration is a reasonable, if not conservative, measure of the network's performance.
Additionally, more than half of all markets in the State of Florida, including four markets similar in size to the MDA, as well as AGSSA 3 within the MDA, exceed an expected penetration calculation based on segment popularity further establishing the reasonableness of expected penetration as a measure of the network's performance. Thus, AGSSA 3 exceeded expected penetration even without considering any contribution from Stone.
Assuming, for argument, resale of current model vehicles originally registered by fleet customers, such as rental companies, substitute for new retail sales, the maximum possible deviation from Buick's actual penetration is
.02 percentage points for Pinellas County or .06 percentage points for Pinellas and Pasco Counties together, which is insignificant compared to the shortfall experienced in the community or territory (AGSSA 1) or the Clwtr-MDA. 13/
Similarly, inclusion of bank and factory lease transactions in retail market share does not meaningfully alter Buick's penetration in the community or territory (AGSSA 1) or the Clwtr-MDA and, therefore, would not justify deviation from expected penetration. Therefore, expected penetration is a reasonable standard against which to measure Buick's network performance in the community or territory (AGSSA 1) or the Clwtr-MDA.
Although more than half of all Florida markets exceeded a 1988 expected penetration, as calculated for each area, the Clwtr-MDA fell below expected penetration with the community or territory (AGSSA 1) even lower. Indeed, from 1986 through June 1989, the community or territory (AGSSA 1) was the worst AGSSA in the Clwtr-MDA while AGSSA 3 consistently met or exceeded
expected penetration. Similarly, the Clwtr-MDA fell below expected penetration during the same period. 14/
Buick's poor performance in the community or territory (AGSSA 1) resulted in full year net registration losses ranging from 205 units in 1986 to
104 units in 1988 with a loss of 58 units through six months of 1989. 15/ Efficiency during that same period ranged from a low of 76% to a high of 86% of expected penetration.
Increased levels of performance were due to Stone's operational improvements resulting in additional sales to community or territory (AGSSA 1) consumers. 16/ These improvements, however, were insufficient to raise penetration in the community or territory to reasonable minimum expected levels. Additionally, the influence of other dealers on penetration in the community or territory declined over the same period. 17/
Thus, since performance in the community or territory has not met reasonable minimum expectations since 1986; and since Stone, who is responsible for more than half of the current penetration, is unable through operational changes to increase performance to reasonable minimum levels; and because other dealers have had a declining influence on penetration in the community or territory; and Stone's location is not centrally located or within the community or territory shopping area, it is logical to conclude that the community or territory is inadequately represented and Stone's relocation request is justified. 18/
Analysis of network variables, such as population, economic factors and the number of dealers and their locations (as opposed to consumer variables and unique factors) demonstrate the Buick network in the community or territory and Clwtr-MDA is not properly configured to provide adequate representation.
From 1980 to 1988, population density has increased throughout the community or territory (AGSSA 1), AGSSA 3 (Bayview) and north of Scott in AGSSA
An area south of Scott reflects some declines. Increased density in the community or territory is in northern Pinellas County and around and southwest of the proposed Stone location. Driving age population and household distribution reflect similar increases in concentration in the community or territory (AGSSA 1) and the Clwtr-MDA.
Overall, total population, driving age population and the number of households in the community or territory has increased dramatically from 1970 through 1988: total increased by 141,772; driving age by 124,996; and households by 65,611. (GM Ex. 50.) Dramatic increases in total and driving age population and number of households were also experienced in the Clwtr-MDA during the same period: total increased by 467,080; driving age by 421,693; and households by 235,953. Indeed, every AGSSA in the Clwtr-MDA, including AGSSA 2, experienced growth overall during the stated period, notwithstanding the decline in some areas within AGSSA 2. It is noteworthy as well that the rate of growth in the community or territory was nearly double that of the MDA as a whole. (GM Ex. 60.)
This dramatic growth in the community or territory and the Clwtr-MDA has the effect of not only creating greater opportunities for the sale of new cars, but also results in increased congestion in the area and, concomitantly, increases the importance of establishing a dealer network that is conveniently located with regard to area consumers. The fact that the community or territory
has not received adequate representation at least as far back as 1986 suggests the dealer network has not kept pace with the substantial growth.
Economic factors indicate the community or territory (AGSSA 1) and the MDA are conducive to selling new motor vehicles. Notwithstanding the area is apparently populated by retired individuals without "income" as such, but with higher than average wealth, the community or territory and the MDA as a whole reflect a reasonable mix of upper and middle income levels and virtually no low income areas. 19/ On average, income in the community or territory was the highest of the three AGSSAs in the MDA. 20/
Additionally, annual average employment in Pinellas and Pasco counties (roughly equivalent to the community or territory and the MDA) has steadily increased (at an annual rate of 4.4% and 4.7%, respectively) from 1980 through 1988, indicating a generally healthy economy. Furthermore, like population, increasing employment suggests expanding opportunities for new car sales, but, also results in increased congestion as greater numbers of individuals use the road networks to travel to and from work. Consequently, convenience of the dealer network to consumers becomes a more important factor.
The density of new car industry retail registrations in the community or territory and MDA essentially follows the pattern of household and population densities.
The years 1982 to 1988 registration data reflects significant increases in the number of new vehicles registered annually in the community or territory (AGSSA 1) and the MDA. Most of the increases occurred from 1982 to 1984 with slight declines in 1987 and 1988. Growth in new car registrations at an annual average rate of 5.4% in the community or territory (AGSSA 1) outstripped population and employment growth rates by a full percent: population 4.3%; driving age population 4.4%; households 4.5%; and employment 4.4%.
Furthermore, growth rates in the community or territory were nearly double growth rates in the MDA as a whole. The annual average growth for new car registrations in the MDA, also significant, was 3.9% where population increased at a rate of 2.3%; driving age population at 2.4%; households at 2.7% and employment at 4.7%.
This increase in annual new car registrations conclusively establish the greater opportunities for new car sales suggested by population, household and employment growth. Furthermore, as a consequence of greater opportunities, there may be insufficient numbers of dealers to stimulate competition or existing dealers may not be conveniently located with regard to the pattern of growth, resulting in inadequate representation.
Yet, although households and population in the MDA more than doubled since 1970, the number of Buick dealers increased by only 50%. Indeed, Stone has been the only dealer in the community or territory (AGSSA 1) since 1959, whereas the population and households in that area have doubled since 1970.
Based on an analysis of all Florida markets, only 25% of those markets that exceed 10,000 industry registrations per Buick dealer achieve or exceed expected penetration. From a network design perspective, Buick's greatest opportunity to achieve expected penetration in, is medium sized markets of between 3,000 and 10,000 industry registrations per Buick dealer where 59% meet or exceed expected penetration. Buick has slightly less opportunity in small
markets of less than 3,000 industry registrations per Buick dealer where 57% meet or exceed expected penetration. 21/
Thus, designing a dealer network where the market is larger than 10,000 industry registrations per Buick dealer results in only a 25% chance of achieving expected penetration, or, stated another way, a 75% chance of failing. (GM Ex. 63.) To have roughly an even chance of meeting expected penetration, the network should be designed so that industry registrations per Buick dealer do not exceed 10,000.
Based upon the size of the Clwtr-MDA, 12,810 industry registrations per Buick dealer, an additional dealer is necessary to reduce the market size to acceptable levels. The community or territory itself exceeds the maximum 10,000 (10,749) industry registrations, placing it in the large market category. Because the size of the market is at critical levels, and because new vehicle registrations are spread throughout the community or territory, proper dealer location is essential if Buick is to have a reasonable chance of achieving its expected penetration.
An analysis of MDA census tracts which meet or exceed the expected penetration reflect that, on average, consumers in those areas are 4.3 miles from the nearest Buick dealer. Consumers in the community or territory (AGSSA 1), however, are, on average, 6.4 miles from the nearest Buick dealer, or 49% further. (GM Ex. 67.) This suggest that Stone is not properly located to adequately serve consumers in the community or territory (AGSSA 1).
An optimal location analysis confirms that to maximize customer convenience in the community or territory and the MDA, Stone Buick should relocate out of downtown Clearwater to a location north of its current location and on U.S. 19, within the general vicinity of the proposed site. Such a location would provide more customer convenience in the community or territory (AGSSA 1) and the MDA than Stone Buick's current location. 22/
The proposed relocation would reduce the average distance of community or territory consumers to the nearest Buick dealer from 6.4 miles to 4.1 miles, resulting in a level of convenience equal to those areas that meet or exceed the expected penetration (4.3 miles). Additionally, the level of convenience Buick would offer in the community or territory compared to competing brands would improve from 18th position to 6th position. (GM Ex. 70.)
Generally, a dealer's ability to penetrate the market is strongest nearer the dealership, tapering off substantially at distances beyond 4 to 10 miles: within 2 miles Stone penetrates at 5.2% dropping to 2% or less after 4 miles and less than 1% after 12 miles; Scott penetrates at 8.9% within 2 miles dropping to 3.8% after 4 miles and less than 1% after 12 miles; Bayview penetrates above 5% up to 10 miles, dropping to 2.9% after 10 miles and below 1% after 18 miles. (GM Exs. 77 through 80.)
Consequently, based upon their distance from the community or territory, neither Bayview nor Scott are able to draw consumers in sufficient quantities to adequately serve the community or territory. Additionally, although Stone has the greatest responsibility for Buick penetration in the community or territory (AGSSA 1), based on its current location, it too is unable to draw sufficient numbers of consumers to adequately serve the community or territory.
As a result of inadequate representation, gross registration loss for Buick in the community or territory in 1988 was spread throughout the community or territory (AGSSA 1), totalling 162 units. 23/ Additionally, 266 units registered in the community or territory were sold by Buick dealers located outside the community or territory (insell) during that same period, for total lost opportunity in 1988 of 428 units. (GM Ex. 82 and 83.) 24/
Assuming Stone was located at the proposed relocation site in 1988 and that it performed like the average of Scott and Bayview, it is reasonable to conclude that Stone would have been responsible for an additional 173 registrations in the community or territory (AGSSA 1), or 40% of the lost opportunity. Since this is less than the total opportunity, conceivably all the gross registration could be eliminated, thus raising penetration in the community or territory above minimum expected levels.
Retail registration for Buick in 1988 in the larger Clwtr-MDA was 441 units, mostly concentrated in AGSSA 1 and the southern portions of AGSSA 2.
Two-hundred eighty-nine registrations were attributable to Buick dealers outside the MDA 25/ for a total lost opportunity in the MDA of 730 units in 1988.
Again assuming Stone was located at the proposed relocation site in 1988 and that it performed like the average of Scott and Bayview, it is reasonable to conclude that Stone would have been responsible for an additional
170 registrations in the Clwtr-MDA, only 23.3% of the total MDA lost opportunity. Because the incremental increase is small compared to the gross loss, it is likely that all 170 additional registrations will come from gross loss and will not deprive a single Buick dealer, inside or outside of the MDA, of a sale. 26/
Studies indicate that nearly two-thirds of Buick buyers visit at least one other brand before purchasing a Buick. Thus, proximity sensitive consumers may trade off Buick for a brand that offers more convenience. 27/
Studies also indicate that Buick buyers, more often than not, visit more than one Buick dealer before making their purchase. It is reasonable to conclude, therefore, that a dealer closer to consumers may stimulate interest in the product, although the actual sale is made by a second dealer offering greater value. That contribution to the network's performance, however, would have been initiated by the proximate location of the first dealer to the consumers, demonstrating the necessity for proper network planning.
Accordingly, relocation of Stone to a location more convenient to community or territory consumers may have a positive effect on performance throughout the Clwtr-MDA.
Previous experience confirms that a relocation within a market can result in increased efficiency. Buick dealer relocations in the Jacksonville market in 1985 and again in 1986 each resulted in efficiency increases in the respective AGSSAs.
Experience in the area under review confirms that increased levels of convenience can stimulate the entire network into better performance. After Bayview's addition in 1981, the MDA went from 92% efficient and 336 units below national average to 116% efficient and 883 units above, representing an increase of about 1200 units. Although Bayview had no impact on areas east of Tampa Bay, significant improvements occurred in Stone's AGSSA (at that time referred to as AGSSA 2) and moderate improvements in Scott's AGSSA (at that time identified as AGSSA 3). 28/
Respondent presented opinion testimony by Dr. Richard W. Mizerski regarding issues presented in this hearing. However, Dr. Mizerski has never designed or been involved in the design of a retail distribution network to determine the number of locations of automobile dealerships in a particular market. Dr. Mizerski's experience in this area has been derived solely from representing dealers in pending or threatened litigation.
GM's expert, Mr. Anderson, on the other hand, is president of Urban Science Applications, Inc. (USAI), a company committed to network analysis for distribution of products and services, with a division devoted to the automobile industry. USAI has offices in Michigan, California and England and consults regularly with virtually every major auto manufacturer regarding dealer networking issues. The analysis presented by Mr. Anderson in this case follows the same analytical procedure as the analysis routinely applied by USAI in the ordinary course of its business with its automotive clients.
Dr. Mizerski believes the former Buick Tampa MDA, roughly comprising Pasco, Pinellas and Hillsborough Counties, is the relevant community or territory. (GM Ex. 3.) Dr. Mizerski's opinion was based upon U.S. Census Bureau designation of a similarly configured area as a "statistical metropolitan area" and because certain advertising publications regard the St. Pete/Tampa area as a market. 29/
Dr. Mizerski did not, however, explain why the area designated in those publications should be applied in this case, where the goods being marketed are Buick automobiles; 30/ nor did Dr. Mizerski present any evidence to contradict Mr. Anderson's detailed analysis which defined the community or territory based, among other things, upon consumer behavior or Buick purchasers. Therefore, Dr. Mizerski's questionable opinion regarding the community or territory is rejected in favor of the more detailed and persuasive analysis by Mr. Anderson.
Dr. Mizerski also asserted that Mr. Anderson wrongly manipulated the Stone AGSSA 1 configuration to impact penetration comparisons. Dr. Mizerski claims an AGSSA 1 design identified as "P-file" is the appropriate configuration. Dr. Mizerski's assertion is based solely upon AGSSA structure lists exchanged in discovery that reflect the "P-file" AGSSA 1 configuration. Dr. Mizerski maintains the "P-file" reflects GM's AGSSA design for the Stone relocation.
However, although acknowledging that changes in dealer locations can change an AGSSA configuration, Dr. Mizerski based his opinion upon discovery materials that did not reflect dealer locations. Other materials provided to Respondent in discovery, though, clearly demonstrate the "P-file" reflects AGSSA configurations for the current Stone location and not the relocation site. Additionally, current GM business records reveal that the "P-file" configuration utilized by Dr. Mizerski reflects the current Stone location and not the proposed relocation site.
Dr. Mizerski also admitted he did not independently verify the accuracy of either the "P-file" AGSSA configuration or Mr. Anderson's configuration with regard to the relocation site and he had no basis for asserting that Mr. Anderson's design violated any of the principals upon which it was based. Therefore, Dr. Mizerski's proposed AGSSA 1 configuration is rejected and Mr. Anderson's AGSSA 1 is accepted.
Dr. Mizerski also contends Buick representation is adequate based on evidence that from 1986 through June 1989, Buick retail penetration in the Clwtr-MDA and in 1988 through June 1989, met or exceeded national or Florida penetration. 31/ Without explanation, Dr. Mizerski repeatedly concluded that
national and state average present "rigorous" standards against which to measure network performance. 32/
Mr. Anderson, however, demonstrated that differences between the market area under review and the nation or state as a whole, as reflected in the types of vehicles consumers in the market prefer, independent of brand, could result in national or state averages being too high or too low as a minimum standard for measuring network performance. To fairly and consistently evaluate network performance, the influence of unique characteristics of the market over which the dealer has no control must be eliminated. The dealer network should neither be credited nor burdened with unique preferences over which they have no control. 33/
Here the effort of any unique consumer preferences in the community or territory and AGSSA 1 were identified based on the relative popularity of various types of vehicles, independent of brand, compared to their popularity nationally. The expected penetration, thus, reflects an adjustment which removes unique consumer influences over which the dealer network has no control in determining a reasonable standard against which to evaluate the network's performance, resulting in a reasonable minimum standard which exceeds the overall national average. Therefore, Dr. Mizerski's conclusion that AGSSA 1 is adequately represented based on national or state average, unadjusted to reflect unique characteristics of AGSSA 1, is rejected.
Dr. Mizerski also examined "head of household" age and income statistics for AGSSA 1 and the Clwtr-MDA, compared to Buick buyer profiles derived from J.D. Power national surveys. Dr. Mizerski concluded that while age statistics in AGSSA 1 appear to be conducive to Buick, AGSSA 1 income, being "skewed to the lower income brackets" would have a "depressing effect" on penetration.
Dr. Mizerski's analysis presents several problems. First, an infinite number of demographic variables may impact the types of vehicles consumers prefer, yet Dr. Mizerski examined only two, age and income. 34/ Secondly, Dr. Mizerski concluded that AGSSA 1 and the community or territory were statistically "skewed" to lower income; yet no evidence was introduced showing the percentage of individuals in the higher or lower income brackets differed from the distribution nationally. Third, the Power survey is limited to "Buick buyers" while comparison statistics for AGSSA 1 include total population; nothing was introduced to suggest that within AGSSA 1 total population there were insufficient numbers of individuals that satisfied the Buick profile. 35/
Additionally, Dr. Mizerski's conclusion that statistics reflecting a greater percentage of low income households compared to high income households in AGSSA 1 have a "depressing" effect on the networks ability to achieve a reasonable standard is challenged by other evidence. For example, based on income, between AGSSA 1, the Bayview AGSSA and the MDA, AGSSA 1 is most conducive to Buick sales and Bayview's AGSSA is least conducive. However, Buick's penetration is lowest in AGSSA 1 and highest in the Bayview AGSSA.
Elsewhere, Dr. Mizerski concluded that based on age and income combined, AGSSA 1 has "the right mix that statistically has been correlated to having performance above national." Also, a calculation by Dr. Mizerski, again
based solely on age and income, showed an expected penetration in AGSSA 1 well above national average.
Furthermore, a survey conducted by Dr. Mizerski suggests that Buick buyers in the community or territory have lower income than Buick buyers nationally, with nearly 70% having household income of less than $35,000. Despite this supposed lack of income, a greater percentage of AGSSA 1 and MDA consumers purchase the more expensive large, large luxury and sport luxury vehicles when compared to their national popularity.
All of this suggests that income is an unreliable variable upon which to base a determination of adequate representation. Indeed, Dr. Mizerski warned against drawing conclusions based on income data because survey respondents are generally reluctant to provide income information.
Dr. Mizerski also claimed support for his position against Stone's relocation because census tracts within a two-mile radius of Stone, predominantly conducive to selling Buicks, did not achieve national average. Yet, Dr. Mizerski concedes that location is a factor in marketing automobiles; and that relocation of an existing dealer within the network can have a profound impact on a market.
Thus, evidence that Stone is unable to effectively penetrate the area immediately surrounding its dealership, despite operational changes effected by Mr. Kelley, seems more supportive of Mr. Kelley's position that the downtown location is not viable and relocation is necessary to effectively compete and adequately serve AGSSA 1 consumers.
Dr. Mizerski disagrees with GM's use of vehicle segmentation to account for uniqueness in the local market. 36/ His disagreement is premised on other automobile manufacturers or automotive journals having developed schemes with a different number of and names for the categories. Dr. Mizerski speculated that a different number of segments could dramatically change the expected penetration.
However, Dr. Mizerski had no basis for asserting that using any one of the different schemes presented would result in a difference in the expected penetration. Dr. Mizerski did not present a segment scheme of his own showing a significant difference in expected penetration.
Furthermore, Mr. Anderson demonstrated that less than a 2% variance results between using GM's five segment scheme as opposed to GM's seven segment scheme. Similarly, virtually no variance results when categories of GM's seven segment scheme are collapsed to form fewer segments. This supports Mr. Anderson's opinion that any reasonable segmentation scheme will predict a similar expected penetration for the community or territory and MDA.
Dr. Mizerski was also critical of a mapping technique which incorporates random dot placement within specified geography, used by Mr. Anderson to calculate a dealer's ability to penetrate the market at various distances from its dealership. 37/ Dr. Mizerski presented exhibits purporting to show an equal probability that all of the dots could be placed in a confined area of the specified geography, thereby distorting the resulting calculation. Dr. Mizerski did not present any evidence regarding the nature or extent of the distortion, if any.
Mr. Anderson, however, using the intentionally distorted placement by Dr. Mizerski, demonstrated that the net effect of such a distortion on the calculation was slight (a difference of only three registrations). Mr. Anderson explained that the statistical computation incorporated elements of self compensation, making the possibility of error unlikely. Furthermore, it is virtually impossible for a distortion such as intentionally created by Dr. Mizerski to occur. 38/ Finally, the method used by Mr. Anderson to calculate penetration at distance from a dealership is accepted as standard in the automotive industry.
Dr. Mizerski also contends there is no lack of convenience in AGSSA 1 that would justify relocation. Dr. Mizerski's position is premised upon his interpretation of his survey of Bayview customers, showing a lesser tendency to shop other brands or other Buick dealerships than national surveys suggest.
However, Dr. Mizerski's survey included only Bayview customers. It did not include consumers that may have shopped at Bayview and purchased elsewhere; and it did not include consumers that may have switched brands because Buick dealers were inconveniently located.
Furthermore, the Bayview customer survey reflects that roughly half of Bayview's customers shop other brands. That survey also reflects that distance was the most important reason Bayview's customers chose Bayview and that only 8.4% of them visited another Buick dealership. Since normally 58% of Buick buyers shop another Buick store, this suggests Buick does not provide adequate convenience for comparison shopping in the community or territory. Dr. Mizerski's interpretation of this data is, therefore, at the very least, doubtful.
Finally, Respondent contends that AGSSA 1 configured for the relocation comprised part of its market. However, since Bayview's penetration declines dramatically South of the Pasco county line, only twenty-seven registrations were attributable to Bayview in those census tracts over which Stone would assert a geographic advantage due to the relocation. 39/
Additionally, although Bayview is responsible for nearly seven percent of the registrations in its AGSSA, it is responsible for only one percent of the registrations in the community or territory (AGSSA 1). Conversely, Stone, from its current location, is responsible for more than half of Buick's penetration in its community or territory (AGSSA 1). This demonstrates that from the relocation site, which is 17.1 miles from Bayview, Stone will not unreasonably encroach upon Bayview's market.
CONCLUSIONS OF LAW
The Division of Administrative Hearings has jurisdiction over the subject matter of this proceeding and the parties pursuant to Section 120.57(1), Florida Statutes.
The statute governing this matter is Section 320.642, Florida Statutes, which provides: 40/
The Department shall deny an application for a motor vehicle dealer license in any community or territory where the licensee's presently licensed franchise motor vehicle dealer or dealers have complied with
licensee's agreements and are providing adequate representation in the community or territory for such licensee. The burden of proof in showing inadequate representation shall be on the licensee.
GM has not alleged existing dealers are not in compliance with their franchise agreements. Therefore, the sole issue presented is whether "presently licensed franchised motor vehicle dealer[s] ... are providing adequate representation in the community or territory. "
Section 320.642 does not define the term "community or territory." Accordingly, a determination of the appropriate community or territory is based upon the facts presented at the hearing. Anthony Abraham Chevrolet Co. v. Collection Chevrolet, Inc., 533 So.2d 821, 824 (Fla. 1st DCA 1988) (App. at 93-
96) (determination of the community or territory "is a question of fact that must be resolved in an evidentiary hearing and not on a motion to dismiss."); Seacrest Cadillac, Inc. v. Larry Dimmitt Cadillac, Inc., DOAH Case No. 88-2252 (Fla. DHSMV 1989) aff'd Larry Dimmitt Cadillac, Inc. v. Seacrest Cadillac, Inc.,
15 FLW D670, 671 (Fla. 1st DCA 1990) (community or territory defined according to consumer behavioral data).
In determining the relevant community or territory, the area described in the contract is a material fact entitled to "great weight" but is not conclusive. Bill Kelley Chevrolet, Inc. v. Calvin, 308 So.2d 199, 201 (Fla. 1st DCA 1974) (area described in the contract is a material fact); Larry Dimmitt Cadillac, Inc. v. Seacrest Cadillac, Inc., supra at 671 (contractual area entitled to great weight but is not conclusive). And where exceptional conditions exist, the parties may show that separate market areas exist within an MDA.
Previous decisions have held, based upon consumer behavior, that areas distinct from the MDA form the relevant community or territory. See, Larry Dimmitt Cadillac, Inc. v. Seacrest Cadillac, Inc., supra at 671 (where MDA included areas east and west of Tampa Bay, held based on consumer behavior that west side of Tampa Bay was community or territory); Ed Morse Chevrolet of Seminole, Inc. v. Jim Quinlan Chevrolet, Inc., DOAH Case No. 88-3523, (Fla. DHSMV 1989) (where MDA included areas east and west of Tampa Bay, held based on evidence of low cross-sell that west side formed a separate interconnected market that was the relevant community or territory); See also General Motors Corp. v. Hunt Truck Sales & Service, Inc., DOAH Case No. 80-1265 (Fla. DHSMV 1981) (accepted an area smaller than area of primary responsibility as community or territory because it constituted "a separate, identifiable, and distinct retail marketing area...."); Ed Mullinax Ford, Inc. v. Bolton-Hooley, Inc., DOAH Case No. 87-1694 (Fla. DHSMV 1988) (determination of community or territory based on consumer behavior data).
In this case, GM contends the area comprised of AGSSAs 1, 2 and 3 on the west side of Tampa Bay form the current MDA boundary. Respondent contends, however, that GM's October 1, 1988 revision of the MDA is invalid and that the former MDA, comprised of AGSSAs 1, 2 and 3 but also area east of Tampa Bay, is the current MDA boundary. Based upon uncontroverted evidence that Buick consumers from AGSSAs 1, 2 and 3 do not buy Buicks from dealers east of Tampa Bay to any significant degree, the area east of Tampa Bay is not part of any interconnected market west of Tampa Bay. This is confirmed by the fact that Bayview's establishment in 1981 stimulated Buick performance to varying degrees in AGSSAs 1 and 2 but had virtually no effect on Buick's performance east of the
Bay. Therefore, the area east of Tampa Bay is not relevant to any definition of the community or territory or any evaluation of the network's performance as it relates to the issue of Stone's relocation.
Evidence adduced at hearing also established that from an auto marketing perspective, AGSSA's 1, 2 and 3 form separate and distinct marketing areas for Buick. Due to their distance from one another and inability to penetrate significantly after ten miles, existing dealers are unable to penetrate adjoining or remote AGSSAs. Indeed, the impact on Buick penetration in AGSSA 1 by dealers outside AGSSA 1 has steadily declined over the years. As a result, each dealer is responsible for a high concentration of Buick registrations in their respective AGSSAs which is more comparable to isolated than connected markets. This is especially true of Bayview's AGSSA 3 where Bayview is responsible for more than 80% of the Buick registrations. 41/ Thus, AGSSA 1, configured for the Stone relocation represents a separate and distinct market which is the relevant community or territory in this case.
Alternatively, AGSSAs 1, 2 and 3 form the community or territory with AGSSA 1 as an identifiable plot. 42/
Inadequacy of representation may be demonstrated either in the community or territory as a whole, or in an identifiable plot within the community or territory "not yet cultivated, which could be expected to flourish if given the attention which the others in their turns received... ." Bill Kelley Chevrolet v. Calvin, 322 So.2d 50, 52 (Fla. 1st DCA 1975) cert. denied 336 So.2d 1180 (Fla. 1976).
The evidence established that from 1986 through June 1989, Buick penetration in AGSSA 1 fell well below reasonable minimum expectations after accounting for unique characteristics in the market, resulting in substantial registration losses. During that time, AGSSA 1 was the worst performing AGSSA in the Clwtr-MDA. Although performance levels in AGSSA 1 slightly increased due to Stone's operational improvements, they still did not reach minimum acceptable levels. During that same period, the influence of Buick dealers outside AGSSA 1 declined. Thus, from its current location, Stone, together with all other dealers, is unable to provide adequate representation in AGSSA 1.
Undisputed evidence shows that population, the number of households, employment and the number of annual new car registrations has increased dramatically throughout the Clwtr-MDA since 1970. The rate of growth in AGSSA 1 is nearly double that in the Clwtr-MDA as a whole. As a result, the size of the market in AGSSA 1 exceeds the recommended maximum for Buick for purposes of achieving expected penetration. Additionally, due to the direction of the growth, Stone's current downtown location, where it is the only remaining car dealership and which is not within any auto shopping area, is no longer optimally located to adequately serve AGSSA 1 consumers. Relocation of Stone to the proposed site, however, will improve convenience in AGSSA 1 in line with the convenience offered in areas that exceed expected penetration. Based upon an assessment of Stone's performance assuming it had been at the relocation site in 1988 and performed like the average of Scott and Bayview, Stone would have raised levels of performance in AGSSA 1 above minimum expected level without unreasonably encroaching upon other dealer's markets, if at all.
Therefore, GM has satisfied its burden under Section 320.642 (1987) and demonstrated that Buick is not being adequately represented in AGSSA 1 whether AGSSA 1 is considered the relevant community or territory or as an identifiable plot within a larger community or territory which, if cultivated by
a properly located dealer, could flourish. Accordingly, Stone's request to relocate its dealership within AGSSA 1 should be approved.
Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that:
Stone Buick's application to relocate its dealership to 1035 U.S. Highway
19 South, Palm Harbor, Florida, in the vicinity of AGSSA 1 be GRANTED. DONE and ENTERED this 30th day of May, 1990, in Tallahassee, Florida.
JAMES E. BRADWELL
Hearing Officer
Division of Administrative Hearings The DeSoto Building
1230 Apalachee Parkway
Tallahassee, Florida 32399-1550
(904) 488-9675
Filed with the Clerk of the Division of Administrative Hearings this 30th day of May, 1990.
ENDNOTES
1/ Section 320.642, Florida Statutes, requires the manufacturer to establish either that its presently licensed franchisees are not in compliance with their franchise agreements or that they are not providing adequate representation for the line-make in the community or territory in order for an additional same-line license to issue. In the present case, there has been no allegation of noncompliance with the franchise agreements.
2/ An MDA is a geographic area contractually assigned by Buick to more than one dealer.
3/ Buick established the Clwtr-MDA as reflected by GM Exs. 1 and 3 by written notice dated October 1, 1988. (Resp. Ex. B.) Prior to that time, the MDA included the area east of Tampa Bay and a fourth dealer, Royal Buick in Tampa. (Resp. Ex. A.) All of the geographical area associated with the former MDA and its fringe are exhibited in GM Ex. 1. Based on consumer behavior indicating only 6.5% of Royal's business is within the Clwtr-MDA, Royal and the area it occupies, generally separated from the MDA by Tampa Bay, are nevertheless excluded from the community or territory regardless of whether the former MDA boundary or current MDA boundary is the starting point for the analysis.
4/ AGSSA's are defined by U.S. census tracts or, where census tracts cannot be used, other geographic descriptions such as zip codes, C-towns, and NCT's, which are assigned to the nearest dealer unless there is some overriding consideration, such as natural or man-made barriers, or demonstrated consumer unwillingness to travel from one area to another as verified by consumer behavior data.
5/ AGSSA boundaries, by definition, change whenever a dealer location is changed. The AGSSA 1 configuration reflects the proposed Stone Palm Harbor location.
6/ The remaining 11% went to dealers outside the MDA. (GM Ex. 6.)
7/ Stone is the only car dealer that remmains in downtown Clearwater. Half of the property on which Stone is currently located is owned by the City of Clearwater, which can terminate the dealership's lease on six (6) month's notice.
8/ Based on Stone's current Clearwlater location, consumer behavior reflects some connection to AGSSA 2 which would probably dissipate if Stone were permitted to relocate.
9/ See Collection Chevrolet v. Anthony Abraham Chevrolet, DOAH Case No. 87- 3025, (Fla. DHSMV 1989, Recommended Order) National average extremely conservative.
10/ Conversely, if an area's profile is not distinct when compared to the nation, the area's penetration and efficiency rates are appropriately compared to the nation. Ed Mullinax Ford, Inc. v. Bolton-Hooley, Inc., DOAH Case No. 87- 1694, Recommended Order at 15, (Fla. DHSMV 1988).
11/ Buick performs best among consumers that prefer mid-size, large and large luxury cars which constitute 48.6% of the community or territory market, an increase of more than 30% of the national distribution of 37.2%. 47.4% of the MDA market is made up of mid-size, large and large luxury cars, an increase of more than 27% of the national distribution. (GM Exs. 15 and 16.) The popularity of these types of vehicles in the community or territory and MDA have steadily increased over time, resulting in increasingly higher expectations for Buick (112% of national in 1986; 117% in 1987; and 122% in 1988).
12/ The same analysis concludes that Buick should expect 8.17% in the MDA, well above expected penetration of 6.79%.
13/ These figures drastically overstate any possible effect fleet resales could have on retail penetration. First, they are premised upon assumptions that a vehicle in rental service in Florida is regarded by consumers as an adequate substitute for a new vehicle and that this phenomena occurs only with regard to Buick vehicles and no other manufacturer.
14/ An analysis based on total registration, including sale to fleet customers reflects the same pattern as the retail analysis.
15/ Net registration loss is the number of additional registrations necessary to raise the level of performance in the community or territory to expected penetration offset by "gains" in areas that exceed expected penetration.
16/ Interestingly, Stone's efforts resulted in little or no increases in AGSSAs
2 and 3, again demonstrating the separateness of these market areas.
17/ Contribution by all Buick dealers, other than Stone, to community or territory efficiency decreased 14% from 1987 through June 1989. Conversely, Stone's contribution increased by 38% during that same period.
18/ Alternatively, AGSSA 1 is inadequately represented as an identifiable plot of the larger Clwtr-MDA or former Tampa/Clwtr-MDA.
19/ Notwithstanding income data suggests a stable economic structure, registration data reflects not only that consumers in the community or territory purchase new cars, but how many they purchase and what types they prefer and therefore provides the most reliable indicator of whether the area is conducive to new car sales.
20/ This fact is noteworthy considering that Buick's penetration is lowest in the community or territory which has the highest average income, and highest in AGSSA 3 which has the lowest average income.
21/ Similarly, Buick achieves the highest average efficiency in medium sized markets (104.4% of expected), slightly less in small sized markets (102.6% of expected) and the lowest in markets sized over 10,000 industry registrations per Buick dealer (86.1% of expected).
22/ The proposed site is about 2 miles north of the optimal location due to unavailability of property in the area. However, based on direction of growth within the community or territory, the proposed site will be preferable within a few years.
23/ Gross registration loss is the number of registrations needed to raise each defined area within the community or territory, or MDA, to expected penetration, or 6.87%.
24/ Lost opportunity is a combination of gross registration loss and insell. While gross registration loss represents lost opportunity to the manufacturer and dealers, insell represents lost opportunity only to the dealers with the geographic advantage in capturing those sales.
25/ Sales by Bayview and Scott are not counted as insell with regard to the MDA.
26/ Stone Buick's projected retail sales in the MDA from its proposed location based on 1988 registrations are 919 per year. If the sales that Stone should achieve outside the MDA as well as the probable fleet sales are included, Stone Buick should reasonably expect an average of 1,204 sales annually from the proposed location. This averages to the 100 sales per month Mr. Kelley deems necessary for the dealership to be successful.
27/ Interestingly, a survey of Bayview customers shows that distance was the most important reason they chose to purchase from Bayview.
28/ The fact Bayview had no impact on performance east of Tampa Bay confirms the east side of the bay is not connected, from a marketing perspective, to the Clwtr-MDA which is west of the bay.
29/ Dr. Mizerski did not present the advertising publication or the relevant Census Bureau material in the course of the hearing; nor did Respondent provide the information in the course of discovery or pre-hearing exchange of information forming the basis for such expert opinions.
30/ Interestingly, the Florida Department of Highway Safety and Motor Vehicles has twice determined that the Tampa/St. Petersburg area is comprised of at least two distinct marketing areas for automobiles, generally separated by Tampa Bay.
See Seacrest Cadillac, Inc. v. Larry Dimmitt Cadillac, Inc., DOAH Case No. 88- 2252 (Fla. DHSMV 1989) aff'd 15 FLW D670 (Fla. 1st DCA 1990); Ed MOrse Chevrolet of Seminole, Inc. v. Jim Quinlan Chevrolet, Inc., DOAH Case No. 88-3523, (Fla.
DHSMV 1989).
31/ Buick retail penetration in AGSSA 1 was below national, state and MDA averages in 1986 and 1987. Improvements to the Stone Buick operation by Mr. Kelley accounted for an increase in AGSSA 1 penetration in 1988 through six- months of 1989.
32/ Dr. Mizerski used the term "rigorous" to describe national or state average as a standard no fewer than twenty-nine times.
33/ For example, consumer preferences for certain types of vehicles may result in a situation where the network achieves national average in each competitive segment but less than national average overall when totaled. Similarly, consumer preferences may be such that achievement of less than national average in each competitive segment results in greater than national average overall.
Since this situation results not from effort by the dealer network but by unique influences over which the network has no control, those influences must be addressed before national or state average can be concluded to be reasonable.
34/ On the other hand, the segment popularity analysis presented by Mr. Anderson implicitly accounts for all factors, demographic and otherwise, that may impact consumer choices as to the types of vehicles they purchase.
35/ Indeed, in other analysis utilizing age and income together, Dr. Mizerski characterized AGSSA 3 as having the "right mix that statistically has been corrected to having performance above national."
36/ The primary factors in establishing the segments were size and price and, secondarily, image and performance.
37/ Dots were randomly distributed in a uniform manner each representing one registration within a specified geographic location, such as a census tract or zip code, according to its assignment by R.L. Polk based on the registrant's address. These were used in a calculation to determine the reasonably likely impact on penetration and lost opportunity to other dealers if Stone were allowed to relocate and afterward perform like the average dealer.
38/ The probability of 10 dots placed in a uniform random fashion all landing within an area representing ten percent of the larger area is one over ten billion. Conversely, the probability of that not occuring is .9999999999 percent, or virtually certain.
39/ Bayview could overcome any competitive advantage due to distance by offering more value or it could offset any ostensible loss from the lost opportunity available.
40/ In motions presented previously, Respondent argued that the 1988 amended version of Section 320.642 applied to this case because its letter of protest was filed after October 1, 1988, the effective date of the new statute. This issue was fully briefed, argued and ruled upon and, therefore is not addressed here.
41/ Although there may be some connection between Scott (AGSSA 2) and Stone (AGSSA 1) based on Stone's current location that will probably dissipate once Stone has relocated further away.
42/ A determination regarding whether existing dealers are providing "adequate representation" is the same whether AGSSA 1 is considered the community or territory or an identifiable plot within the community or territory.
COPIES FURNISHED:
Mark Herron, Esquire Jeffrey H. Barker, Esquire MOFFITT HART & HERRON, P.A.
216 South Monroe Street Suite 300
Tallahassee, Florida 32301
Edward W. Risko, Esquire General Motors Corporation New Center One Building 3031 West Grand Boulevard Detroit, Michigan 48232
Vasilis C. Katsafanas, Esquire RUMBERGER KIRK CALDWELL CABANISS
BURKE & WECHSLER, P.A.
11 East Pine Street Post Office Box 1873 Orlando, Florida 32802
Daniel E. Myers, Esquire Walter E. Forehand, Esquire FOREHAND & MYERS, P.A.
402 North Office Plaza Drive Suite B
Tallahassee, Florida 32301
Michael J. Alderman, Esquire Department of Highway Safety
and Motor Vehicles
A432 Neil Kirkman Building Tallahassee, Florida 32399-0500
Charles J. Brantley, Director Enoch Jon Whitney, Esquire Division of Motor Vehicles General Counsel
Department of Highway Safety Department of Highway Safety and Motor Vehicles and Motor Vehicles
B439 Neil Kirkman Building Neil Kirkman Building Tallahassee, Florida 32399-0500 Tallahassee, FL 32399-0500
| Issue Date | Proceedings |
|---|---|
| May 30, 1990 | Recommended Order (hearing held , 2013). CASE CLOSED. |
| Issue Date | Document | Summary |
|---|---|---|
| Aug. 17, 1990 | Agency Final Order | |
| May 30, 1990 | Recommended Order | Whether respondent Bayview is providing adequate representation in the community or territory. |
