Posted on 04/28/2009 12:46:15 PM PDT by Zakeet
General Motors Corp. told its dealers Tuesday that it will force 1,000 to 1,200 underperforming locations to close their doors as the automaker tries to thin dealer ranks to make the remaining outlets more profitable.
GM told the dealers about the plan in a video conference, according to a dealer who spoke on condition of anonymity because the video conference was private. It is part of the company's plan announced Monday to cut more than 2,600 dealers by 2010.
The company expects to lose 500 Hummer and Saturn dealers when those brands close or are sold, and it expects 400 dealers to close voluntarily. Another 500 would be consolidated into other dealerships, according to the dealer.
GM said Monday that it also would eliminate its Pontiac brand, but there are only 27 dealers that sell just Pontiacs, according to the National Automobile Dealers Association. Most Pontiac dealers also sell Buick and GMC vehicles at the same location.
(Excerpt) Read more at news.yahoo.com ...
WE have a Saturn Aura-nice car-What’s next.
“Building the Cars Nobody Wants to Drive”
“Building the People’s Car”
Ford isn’t bad. If you cannot stomach buying a new one (ie giving your money right to Ford) buy a used Ford. I found a great deal on a used Escape this year. You can toss your support behind a smaller independent dealer if you go used.
Could someone in the car business explain how too many dealerships cost GM money? Too much unsold inventory sitting on lots? Not sure I understand the problem.
After all, decreased product availability always results in increased sales, doesn't it?
Heck, close ALL the dealerships! That way, you won't have the expense, and sales should go through the roof!
...the follies of government-run business.
Fascism still sucks.
how many of those “out of business” dealers are major campaign donors?
This is dividend time.
they have already closed near me, the local independant porsche repair place just bought a bunch of their tools.
obama is ruining a dying organization!! great stock buy when obama invested billions of YOUR money in a failing company in the last 100 days.
GM is dead, RIP.
hope the government motors is a total flop, the leader is.
You reach a certain level of market saturation that you start competing with yourself. If you have too many people in one location selling the same car they’re going to have to start doing something (like sales or freebies) to get people to go to them rather than the other GM dealer. Plus as you mention there’s inventory, all of your dealers need to have a certain number of cars on the lot if only for test drives.
You’re not alone in that ... GM ... never again.
You’re not alone in that ... GM ... never again.
If the unions own GM then it is un american to buy GM.
I lay the blame for this at the feet of both government and GM management. GM, Ford and Chrysler were all just schemes to externalize the costs of union socialism. In the end, like all socialist schemes, they ran out of other people's money.
I will protest this horrible debacle the only way I can: I will never buy a new GM vehicle. Period. End. Of. Story. Let GM wither away. It is far better than to have another 50 years of socialists attempting to get someone else to pay for their unsustainable schemes.
Good point. If that works, Coca Cola should limit where their products are sold. Who needs to buy Coke at every corner gas station and market?
Gotta agree. It's car buying time for us this summer, and until GM became OM, I was going to consider a GM, since Consumer Reports was giving them pretty good marks.
Oh, yeah, this whole collapse of GM is Bush's fault.
Buy a Tundra Oldexpat. It is made right here in San Antonio by non-union honest working San Antonians. There are also about 25 on-site suppliers that are run and operated largely by other non-union honest working San Antonians.
Buy Tundra. If you have never driven one, then go do it. It is the best truck made. Period. No, I am not an employee but I have been able to tour the plant during one of the open to the public days.
‘zackly. I have a ‘09 Taurus program car that had 9000 miles, saved $10,500 off sticker.
If a different company built a Suburban I would buy it, but since they don’t and I need one I have no choice.
Since those dealership employees arent UAW workers, the union doesnt care how many people they fire. How long do you think GM will survive with union ownership? The people that bankrupted the company now have to run it. It will be fun to watch the UAW negotiate with itself.
Because there’s a Chevy dealership every 8.2 miles, the competition is too fierce to “feed” everyone among each dealership - from salespeople to administration to repair techs...you have a whole bunch of people barely making it with the threat of losing their jobs every day.
One way to boost profitability is to do warranty work in the repair facility...sometimes a little “too much” warranty work is performed to pay the overhead of a struggling dealership. Closing a bunch of these low volume stores will save GM millions in unnecessary claims.
Because competition will be lessened, high-volume stores will move more units and in turn, because they are profitable, will pick up more advertising at their own expense which will, in turn, boost more sales.
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