Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints]]>http://www.autoblog.com/2009/12/04/heres-the-plan-gm-reveals-how-it-will-deal-with-shuttered-deal/http://www.autoblog.com/2009/12/04/heres-the-plan-gm-reveals-how-it-will-deal-with-shuttered-deal/http://www.autoblog.com/2009/12/04/heres-the-plan-gm-reveals-how-it-will-deal-with-shuttered-deal/#commentsFiled under: , ,



Back in May, General Motors announced plans to close down a large portion of its dealership network. Since then, a number of those franchisees have lodged complaints to both the automaker itself and appropriate policymakers, leading to possible legislation on how GM is allowed to handle the closing of dealerships. This being the case, The General is proactively drafting a new set of rules as to how it will deal with these to-be-shuttered dealerships, and it promises that some are likely to be reinstated after the process.

Specific details can be seen in the press release pasted after the break, but it seems that the new plan basically will allow these affected dealerships to get some real-life face time with the automaker to hear exactly whey they were targeted for closure. If the dealer still isn't happy with the outcome, it can elect to enter binding arbitration. If that arbiter finds that GM chose to shutter the dealership for anything other than sound business reasons, the franchise stands to be reinstated.

There's plenty more detailed in the plan, including a provision for GM to help service technicians and dealership employees find new placement, after the break. This plan will go into effect by mid-January "provided that legislation related to GM's dealer restructuring does not move forward."

[Source: General Motors | Image: Justin Sullivan/Getty Images]

Continue reading Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints

Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints originally appeared on Autoblog on Fri, 04 Dec 2009 16:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dealer closingdealer closingsdealer franchisedealer relationsDealerClosingDealerClosingsDealerFranchiseDealerRelationsgeneral motorsGeneralMotorsgmGM dealergm dealersgm dealershipgm dealership closingsgm dealershipsGmDealerGmDealersGmDealershipGmDealershipClosingsGmDealershipsFri, 04 Dec 2009 16:27:00 EST<![CDATA[REPORT: Rejected GM, Chrysler dealers telling their story on YouTube [w/VIDEO]]]>http://www.autoblog.com/2009/09/30/report-rejected-gm-chrysler-dealers-telling-their-story-on-you/http://www.autoblog.com/2009/09/30/report-rejected-gm-chrysler-dealers-telling-their-story-on-you/http://www.autoblog.com/2009/09/30/report-rejected-gm-chrysler-dealers-telling-their-story-on-you/#commentsFiled under: , , , ,


Holdiman Motor terminated dealer plea - click above image to watch the video

Since government money washed in to pump out General Motors' and Chrysler's swamped and nearly sunken businesses, there's been little mention of the cuts to the dealer base that both automakers have made as part of their rebirth. Tammy Darvish, whose DarCars Automotive Group lost two Chrysler outlets, has started a YouTube channel that encourages terminated dealers to send in videos telling their stories.

Co-chair of the Committee to Restore Dealer Rights, Darvish feels that the dealers' stories have largely been ignored. Many of the videos tell tales of long family histories in the dealership business, and all have an air of incredulity about how their American Dreams could be snatched away. These personal accounts may not return any franchises to operation, but at the very least, the effort is cathartic and airs the plight of the many hardworking employees that found work at the now-closed stores. An example of the numerous videos on the channel posted after the jump.

[Sources: Automotive News - sub req, YouTube]

Continue reading REPORT: Rejected GM, Chrysler dealers telling their story on YouTube [w/VIDEO]

REPORT: Rejected GM, Chrysler dealers telling their story on YouTube [w/VIDEO] originally appeared on Autoblog on Wed, 30 Sep 2009 10:59:00 EST. Please see our terms for use of feeds.

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Buick Enclave - Click above for high-res image gallery

In these dark days of bankruptcy proceedings, ever-dwindling sales figures and decades of receding market share, General Motors' base of dealerships certainly has plenty of things to keep it up at night. You may be surprised to hear, though, that a dwindling supply of available inventory is one of the major problems some dealerships are currently reporting. We're not shocked to hear there's only a six-day supply of Chevrolet Camaro models on hand, but dealers are also seeking remedies for shortages of Buick Enclaves, GMC Yukon SUVs and extended-cab Sierra pickups, as well as limited supplies of Chevrolet Silverado trucks. For a company that has historically had an unhealthy attachment to high inventories across their brands, this is an unusual development indeed.

GM is aware of the shortages and Mark LaNeve, vice president of vehicle sales, service and marketing, tells Automotive News that the shortage is a normal part of the adjustment process from the old days of carrying a 120-day supply of vehicles to today's goal of a leaner 75-day supply. The General's messenger further suggests that dealers trade inventory with each other to bolster inventory until the automaker is ready to rekindle its assembly lines beginning on Monday, July 13 after the company's extended summer shutdown.


Gallery: 2008 Buick Enclave


[Source: Automotive News - sub. req'd]

Opposite World: GM dealers reportedly fretting over too tight crossover and truck inventories originally appeared on Autoblog on Mon, 06 Jul 2009 19:02:00 EST. Please see our terms for use of feeds.

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Cadillac is one of the core brands that will form the new General Motors, but the dealership network can't continue in its current guise, according to GM sales head Mark LaNeve. There are 1,422 Cadillac dealers nationwide, more than four times the number of Mercedes-Benz dealers and more than six times the number of Lexus dealers. That kind of saturation meant that in 2008, the average Cadillac dealership did one-sixth the business of a Mercedes dealer and one-tenth the business of a Lexus dealer.

To be fair, Cadillac has fewer cars on offer than Mercedes, BMW, or Lexus. Still, GM wants to gets its dealer volume numbers closer that of the competition - proportionally speaking - and that means more dealer closings. GM hasn't said how many, but to even get close to retail parity they'd be looking at many hundreds of closures, with many of them likely to be in metropolitan areas. Whenever those dealers are chosen, as with the others, they will be allowed to remain open until their franchise agreements on October 31, 2010.

[Source: Automotive News - Sub. Req.]

Under Fire: GM targeting metropolitan Cadillac dealers for closure? originally appeared on Autoblog on Tue, 09 Jun 2009 09:58:00 EST. Please see our terms for use of feeds.

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Rock, meet hard place. With General Motors handed a directive from the White House to be ultra-aggressive in its restructuring in order to secure more government loans, the automaker is making cuts everywhere and dealers are far from immune. As reported previously, GM's plan to shrink its retailers from nearly 6,300 to 3,700 by the end of 2010 is going to be as painful as a Civil War amputation. Initially, General Motors will deny franchise renewal to dealerships that don't measure up on metrics such as customer satisfaction, profits, volume, and capitalization. An initial group of 1,200 stores will either have an uncomfortable meeting or get a "Dear John" letter starting this month.

Unsold cars will be bought back, but GM hasn't made any intimation that it's interested in compensating for special tools, parts inventory, real estate, and the "blue-sky" value of the outlet. The move to buy back only the unsold cars is likely to lead to legal action on the part of some dealers. The dealers are not only nervous, but they've often leveraged one dealership against their others in order to capitalize their operations. Closing one store that's part of a family of dealerships could start a domino effect for that franchisee, and state franchise laws protect the dealers far more than the automaker. Without filing for Chapter 11, General Motors faces a real fight in its action to pull franchises.

[Source: Automotive News - Sub. Req.]

GM dealer downsizing could lead to barrage of lawsuits originally appeared on Autoblog on Mon, 04 May 2009 15:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>general motorgeneral motorsgeneral motors corp.general motors dealersgeneral motors gmGeneralMotorGeneralMotorsGeneralMotorsCorp.GeneralMotorsDealersGeneralMotorsGmgm bankruptcygm dealergm dealersgm dealershipgm dealershipsgm death watchgm deathwatchgm franchiseGmBankruptcyGmDealerGmDealersGmDealershipGmDealershipsGmDeathwatchGmFranchiseMon, 04 May 2009 15:33:00 EST<![CDATA[GM reportedly accelerating the closure of 1,700 dealers]]>http://www.autoblog.com/2009/04/16/gm-accelerating-the-closure-of-1-700-dealers/http://www.autoblog.com/2009/04/16/gm-accelerating-the-closure-of-1-700-dealers/http://www.autoblog.com/2009/04/16/gm-accelerating-the-closure-of-1-700-dealers/#commentsFiled under: , ,

June 1, 2009 is turning into the equivalent of General Motors' D-Day, and every day seems to bring new events that are being planned in advance of it. GM had more than 6,000 dealerships at the end of last year, and in the initial viability plan it offered to the government, the automaker pledged to close 25% of those over the next five years. As with the rest of the plan, the Auto Task Force said "That isn't enough."

So GM has turned the big guns on its dealership closures, having seen 200 of them shut down this year already. It is not waiting for attrition to rid itself of others, but pin-pointing under-performing locations and "could move to terminate franchise agreements." And GM is doing so with a different payment scale than it had when it closed down the 2,800 Oldsmobile dealerships, which ran up a tab of $1 billion.

Also, it appears, the bell tolls louder for a GM bankruptcy. Tucked in the article was this line: "The issue of how many U.S. dealerships GM can support has been one of the hot-button issues for U.S. officials as they drive GM toward a stepped-up restructuring that many observers have now concluded will include a bankruptcy filing."

[Source: Yahoo!]

GM reportedly accelerating the closure of 1,700 dealers originally appeared on Autoblog on Thu, 16 Apr 2009 10:58:00 EST. Please see our terms for use of feeds.

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Dealership rationalization was something General Motors was looking at well before the economy went pear-shaped. GM still has more than 6,300 dealerships in the U.S., and it is even more important now to start shedding some of that financial burden. That is why The General told dealers at the NADA conference that it plans to get rid of 1,600 dealerships by 2012.

GM's initial viability plan to Congress proposed an eventual reduction to 4,000 dealerships. No one knows yet, though, how GM plans to do that. GM said it will explain the dealer elimination plan in the follow-up viability plan it submits to Congress on February 17. Said one GM dealer, "They basically said, 'We're looking for strong dealers, and if you're not a strong dealer, you better evaluate your options."

GM did say that 400 dealers per year being shut isn't a firm number, simply a target. Nevertheless, dealers are none too happy. Some dealers say GM is using GMAC to force dealers out by setting capital requirements beyond a dealer's reach. GM says it has no intention of using GMAC in such a way. When the time comes, dealership liquidation will be be judged market by market, and based on a number of factors including age, location, volume, capitalization and customer satisfaction. While the plan will obviously save GM money in the long term and make it more efficient, in the short term it is going to cost GM a fortune to close 1,600 locations.

[Source: Automotive News, sub req'd, Photo by Justin Sullivan/Getty]

GM plans to trim 400 dealers per year until 2012 originally appeared on Autoblog on Mon, 26 Jan 2009 14:43:00 EST. Please see our terms for use of feeds.

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From November 28 to December 11, GM is holding back incentive payments to dealers, including dealer cash and customer cash. Why? in the words of Mark LaNeve, GM's VP of North American sales, because "Anytime you can delay any kind of a payment, it helps cash flow" And cash is probably the most important four-letter word in any GM dictionary.

The withheld payments don't cover all the monies that GM sends to dealers, just various incentives. According to Automotive News' numbers, the two weeks of extra cash could let GM hold on to an extra $300 million. If GM needs $14 billion per month to operate, $300 million would extend the lifeline by... almost another day. Payments after December 11 would resume on a weekly basis, but with the new two-week delay, something like an employee paycheck. GM discussed the plan with the National Dealer Council beforehand and, unsurprisingly, the council understood. Follow the jump to read LaNeve's letter to dealers.

[Source: Automotive News - Sub. Req.]

Continue reading GM to delay dealer incentive payments

GM to delay dealer incentive payments originally appeared on Autoblog on Mon, 17 Nov 2008 18:31:00 EST. Please see our terms for use of feeds.

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Yesterday we wrote about GM's intent to shrink its 14,118-strong dealer network, with one idea to combine Pontiac, Buick, and GMC dealers into larger, more modern flagship outlets. Turns out that was only part of the plan: according to Automotive News, "General Motors is preparing to make public a plan to encourage the creation of superstores in major metro areas that would carry every GM brand."

These superstores, which would be called GM Collections, are being evaluated for major metropolitan markets where the real estate itself is more valuable than the dealer franchise. For dealers interested in such an outlet, GM's idea is to move service and parts centers off-site to make room for all of the brands. Some dealers think that's a turn-off for consumers, others report good results. In LA, this has been standard practice for a while, with some service departments 25 minutes away from their dealerships. We don't find anything wrong with it, either -- after all, once you've bought the car, how often do you need to go back to the showroom?

The superstores plan is another part of the consolidation plan. In addition to combining Pontiac, Buick, and GMC, the General is also thinking about merging Cadillac, Hummer, and Saab dealerships, which would leave only Chevrolet and Saturn as standalone entities.

UPDATE: Mark LaNeve sent an email to GM dealers this morning saying that the article in "Automotive News concerning a major push to put all of GM brands under one roof is out of context and a mischaracterization." There are no plans to make an announcement about new metro superstores at the NADA conference next month in San Francisco. However, Automotive News still maintains that GM will allow certain stores to carry all of GM's eight brands. We've included the full text of LaNeve's email after the jump (thanks Rob!) and you can check out Automotive News' updated article here (sub. req.).

[Source: Automotive News - Sub Req.]

Continue reading GM working to shrink its dealer network, Pt. 2: introducing GM Collections

GM working to shrink its dealer network, Pt. 2: introducing GM Collections originally appeared on Autoblog on Mon, 21 Jan 2008 14:34:00 EST. Please see our terms for use of feeds.

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At the end of World War II, GM "put a dealership in every little hamlet" to keep up with the postwar boom. Sixty years later, in 2005, long after that boom had ended and every domestic maker was losing market share, GM had 15,094 dealerships. By 2007 GM had reduced that to 14,118 dealers. But if GM plans to compete financially with its overseas competition, it will need to shrink that number a great deal further.

Chevrolet has 4,000 dealerships. Toyota, to sell the same amount of cars, has just 1,244 dealers. Put another way, the typical Toyota dealer moves 1,766 cars per year. The typical Chevrolet dealer moves 554. And the other domestics fare about the same: the usual Ford dealership rolls 556 vehicles off the lot every year, while a Dodge dealer does 374 per year.

GM is looking at consolidating Pontiac, Buick, and GMC shops into one. However, state franchise laws don't make closing dealerships easy, and it's hard to tell a profitable dealer that he needs to close for the good of the parent company. Dale Willey, head of the National Automobile Dealers Association, said "Dealers make the decision to get into the business, and the manufacturers accepted the dealers getting into the business. It ought to be the dealers' decision to get out of the business." While GM CEO Rick Wagoner realizes that the "payoff is significant" for reducing the number of outlets, he must know that the price will be significant as well.

[Source: Detroit News]

GM working to shrink its dealer network originally appeared on Autoblog on Sat, 19 Jan 2008 16:02:00 EST. Please see our terms for use of feeds.

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