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[GM slashes Canadian dealership network by 42%]]>http://www.autoblog.com/2009/05/21/gm-slashes-canadian-dealership-network-by-42/http://www.autoblog.com/2009/05/21/gm-slashes-canadian-dealership-network-by-42/http://www.autoblog.com/2009/05/21/gm-slashes-canadian-dealership-network-by-42/#commentsFiled under: , , ,



General Motors Canada has announced that it has begun notifying its dealer body that it will be culling its sales networks by some 42 percent. The massive cut means that GM's 709 dealers will be trimmed by around 245 stores. The cuts will come as the restructuring automaker will elect to not renew its sales and service contracts come October 2010.

It is not immediately clear how many of those stores are from marques that GM is looking to divest or fold (Hummer, Pontiac, Saab, Saturn), but it is estimated by the Canada Automobile Dealers Association that some 10,000 jobs related may be affected by the cuts. Official press release after the jump.

[Sources: CBCNews; General Motors]

Continue reading GM slashes Canadian dealership network by 42%

GM slashes Canadian dealership network by 42% originally appeared on Autoblog on Thu, 21 May 2009 10:57:00 EST. Please see our terms for use of feeds.

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Like those affected by the overinflated housing market, many auto dealers are experiencing a similar situation with their real estate. During the recent boom times, the thinking was that you needed a big, flashy facility with all sorts of extras and perks to attract customers. Manufacturers helped push the trend by offering extra incentives to dealers for interior and exterior upgrades, or flat-out demanding that some brand outlets conform to a particular standard.

That's all well and good when you're able to grab people's attention and dollars with your store's circus atmosphere, but the rent bills keep coming relentlessly while buyers have all but buried their cash in coffee cans. Some markets that still hold their noses high will continue to demand ridiculous dealerships that are more experience than transaction, while other markets will see the excesses of the past catch up and take a bite out of the dealership's hides.

[Source: Automotive News - Sub. Req.]

Flashy "Taj Mahal" dealerships hit hard by downturn originally appeared on Autoblog on Thu, 12 Feb 2009 08:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto dealerauto dealersauto dealershipAutoDealerAutoDealersAutoDealershipcar dealercar dealerscar dealershipcar dealershipsCarDealerCarDealersCarDealershipCarDealershipsdealershipluxury dealershipLuxuryDealershipThu, 12 Feb 2009 08:31:00 EST<![CDATA[Online car sales - is now the time?]]>http://www.autoblog.com/2006/05/27/online-car-sales-is-now-the-time/http://www.autoblog.com/2006/05/27/online-car-sales-is-now-the-time/http://www.autoblog.com/2006/05/27/online-car-sales-is-now-the-time/#commentsFiled under: ,

Online sales are now a big and fast-growing part of U.S. retail sales, for everything from books to auto parts. True, the total amount of retail sales booked online is a small fraction of the total volume of consumer goods, but it is the fastest growing of all sales channels, tantalizing manufacturers with its efficiency and low cost (not to mention the potential boost to the bottom line).

This week, The Economist looks at the prospects for online auto sales in the U.S., a market locked in the grip of the nationwide franchise network of auto dealers. To date, attempts to sell cars online have not been promising, but things may (slowly) be changing.

With a whopping two-thirds of new car customers researching their purchases online and virtually complete access to the byzantine maze of rebates and incentives, consumers have been using their new-found knowledge to drive down the dealer's profit margin. This is making some dealers, notably consolidated dealer networks like Lithia and AutoNation, consider how to better integrate online retailing into their operations. As a direct result, AutoNation is launching its SmartChoice online service in June.

Meanwhile, financial institutions like Capital One and Chase (think auto loans) are looking at online auto retail channels as a way to streamline the buying process for their loan clients - using volume buying power to guarantee a fixed price for its customers before they set foot in dealerships. Capital One has partnered with Zag - an internet-based company that brings its car buying expertise to affinity and membership organizations (think credit unions, buyers clubs like Costco, etc.). Even Amazon is rumored to be looking at auto sales.

Is this the death knell for the dealership? Well, no. By law, independent online sellers cannot buy "factory direct" - they must buy their cars from a dealer. Besides, virtual test drives aren't very much fun.

Have you/would you bought/buy a car completely online through eBay Motors or another service? Fess up in 'Comments.'

[Source: The Economist - subscription required]

Online car sales - is now the time? originally appeared on Autoblog on Sat, 27 May 2006 20:03:00 EST. Please see our terms for use of feeds.

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