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Auto dealers pressured to spiff up showrooms

No brummagem plastic flags fluttering over hot asphalt, "low down payment" signs or free hot dogs. The atmosphere is sophisticated and solemn at Mercedes-Benz Manhattan. Cars are sold in a spacious gallery atmosphere of hardwood floors and artificer furniture, soaring ceilings and a video wall.

One of the 71 service bays is on display from the sales floor, as if car adjustment were a form of entertainment. That's part of an effort to make the dealership more "open and transparent," says Alan McLaren, vice president of guy service.

Mercedes-Benz's shimmering new dealership, built and owned by the automaker, is intended to set an example for its hundreds of franchisees. Mercedes wants its dealers' stores to juxtapose the luxury feel of the cars. And it's joining industrywide efforts by automakers to pressure dealers into sprucing up, fixing up and rebuilding.

Both peculiar and domestic brands — especially sellers of luxury vehicles — are in the midst of a campaign to lure their dealer franchisees to rebuild or remodel to create sparkling new facilities with amenities such as coffee bars and capacity shops.