- Nov 24, 2009
REPORT: GM offering special discounts to rejected franchise customers, move angers dealer group
General Motors has about 5,860 dealerships right now. A total of 1,839 have agreed to shut down by October of 2010, helping the company downsize to between 3,600 and 4,000 retailers over the long term. While this incentive is scheduled to end January 4, a second wave of incentives (including one targeting Saturn customers) is expected to begin early next year. In addition, GM has also issued a service offer which runs through May that includes free vehicle inspections and tire rotations to displaced customers.
The retention programs – obviously meant to move customers between stores – have dealer advocate groups up in arms. Some dealers are still actively trying to get their franchises off the "kill list," and GM has said recently that some may in fact be welcomed back into the fold. As such, Automotive News quotes Tamara Darvish, a leader of the Committee to Restore Dealer Rights as saying "This is an inappropriate time to take such an aggressive measure... If in fact dealer rights are to be restored, why would GM go in and move all those customers?"
[Source: Automotive News, subs. req'd | Image: Mark Ralston/Getty]