Jacoby, the chair of Venable's automotive industry group, is working on a plan to consolidate competing dealerships into "stronger regional assets" that could save money, keep workers employed and transform auto lots into shared-ownership ventures. According to the article, Jacoby's plan would mimic the foreign automakers' model by using larger dealerships in smaller numbers to serve a greater geographical area.
"The scale of the potential plan now is that we're only working with one group of about seven dealers; it is a damage mitigation plan," Jacoby said. "But if we are able to make it work, it may be a domino effect that spreads throughout the industry."
Jacoby typically works on federal and state regulatory matters, unfair competition, class action and consumer litigation - he is currently focused on how to keep his clients in business and out of Chapter 11.
According to Jacoby, dealers in the state are as much as 20 to 40 percent off from last year. "In the next few years, a lot of dealerships won't exist anymore," he said. "So we're trying to look at some creative solutions."