http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/ Autoblog Comments for GM to accelerate dealer consolidation http://www.autoblog.com/media/feedlogo.gif http://www.autoblog.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 12:23PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 12:48PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 1:01PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 1:20PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/
perhaps some who feel this way should look back to Japan. Toyota sells vehicles thru EIGHT different franchises there.

it will be interesting to see how Mr. LeNeve will propose doing this. GM only has two choices, either by buying out the dealer's franchise directly, or suggest (and ONLY suggest) a possible consolidation with another dealer.

Chrysler had done a similar thing in Califorina back in the early 90s. I owned a Dodge dealer, and they felt the area was "overdealered" by three dealers. they made me a very handsome offer, and we closed the point. however, today the offers aren't all that handsome, and a dealer is under no obligation to do anything the factory wants him to. thankfully, very strong franchise laws in every state protect the dealer, and any other business that is threatened by a manufacturer or distributor with strong-arm tactics.

I've said this several times; take away choices, and competition becomes collusion...never beneficial for a buyer.

AZMike]]>Feb 10th 2008 1:48PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 2:28PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/
You can only go so far depending on the average walk up sucker to buy cars on the lot. At some point, to be successful, dealerships will need to target and take care of the internet buyers.]]>Feb 10th 2008 2:56PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 4:29PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 4:53PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/
For GM to be healthy it's dealer network must be healthy, and right now there are about twice as many dealerships as there should be for GM to be healthy.]]>Feb 11th 2008 1:27PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/
Honda, for example, has (or had, I know for sure they did this in the '90s) 3 different networks: Verno, Clio, and something I can't remember. Each sells different cars for different purposes. One sold Kei-cars and Civics, while the others sold more upmarket products. ]]>Feb 10th 2008 5:39PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/A GM World Dealers could be created to sell low volume, high margin GM models from around the world that are not slated for the conventional dealers like Chevrolet, Pontiac, Buick, Saturn, GMC, Saab, & Hummer.
GM could spend money by helping the dealer upgrade for this mission rather than spend money to buy them out. This World Car dealer option has risks & costs, but there is potential for a return and prestige. The other option is just throwing money out the window buying out dealers. ]]>Feb 10th 2008 9:19PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 9:25PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 9:30PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 10th 2008 10:20PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 11th 2008 9:04AMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/Feb 11th 2008 10:28AMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/
they can't just "cut out" the dealers. ever heard of franchise laws? that's why it is incredibly difficult/expensive to reduce the number of dealers or cut a brand]]>Feb 13th 2008 4:30PMhttp://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/http://www.autoblog.com/2008/02/10/gm-to-speed-up-dealer-consolidation/
It should not be news to anyone watching the auto industry that GM has too many brands, models and dealers chasing too few customers.

GM is organizing 8 Brands in 4 Divisions. http://www.thetruthaboutcars.com/general-motors-death-watch-173-eight-into-four-does-not-go/comment-page-3/

thetruthaboutcars.com above does a great job explaining the reorganization.

Divisions 4/08 Sales * Models CR **
Recommended

Cadillac, Hummer, Saab 18k 11 4
Buick, Pontiac, GMC 68k 14 1
Chevy 157k 14 4
Saturn 17k 5 2
Total 260k 44 11

Toyota, Lexus, Scion 217k 27 17

*http://www.autoblog.com/2008/05/01/by-the-numbers-april-2008/

**2008 Consumer Reports, Annual Auto Issue, April 2008

Like I said, too many divisions, brands and models chasing too many customers. Toyota sells about the same vehicles as GM with 3 divisions and about 1,700 dealers compared to about 6,500 GM dealers.

WARD'S 10 Best Selling U.S. Cars and Trucks
4 Months 2008
Cars Trucks
1 Camry 147,018 F Series 192,951
2 Accord 122,430 Silverado 160,010
3 Civic 111,695 Ram Pickup 93,068
4 Corolla/Matrix 99,482 CR-V 69,058
5 Altima 99,037 Escape 59,299
6 Impala 98,478 Sierra 57,403
7 Focus 72,920 Tacoma 55,363
8 Cobalt 66,660 Tundra 54,134
9 Prius 64,664 Econoline 49,196
10 Malibu 59,133 Caravan 47,936
Source: Ward's AutoInfoBank
©Copyright 2008, Ward's Automotive Group,
a division of Penton Media Inc.
Redistribution prohibited.
http://wardsauto.com/keydata/USSalesSummary0804/

When you look at top Ten best selling model through April 2008, Chevy and GMC are winners, but all GMC models are clones except Acadia.

Summary:

GM should consider going to 3 Divisions, Chevy, Cadillac and Pontiac. Fold GMC into Chevy and eliminate the clones. This the perfect time to eliminate GMC because their entire line of trucks are not desired by buyers . All Buick clones go bye bye. Pontiac is kept because of its sporty reputation. Saturn goes away. Cars that are recommended by Consumer Reports should be keep and folded into one of the three divisions. All clones should be consolidated into one world class car or truck, i.e. Malibu, Impala are the winners and Lucerne etc. is a loser.

Focus on the best sellers and the best quality cars and trucks and eliminate the rest in a hurry. Brutally get all dealers below 2,000 and support the hell out of them.






]]>May 12th 2008 2:09PM