GM to accelerate dealer consolidation

GM may have just half the market share it had 30 years ago, but the Detroit-based automaker still seems to have as many dealers as McDonald's has drive-thrus. The General has slashed more than 2,000 dealerships over the past 12 years, but the company will accelerate closings in order to right-size its sales outlets. GM closed 260 stores in 2007 and another 23 in January of this year, but according to Automotive News, the automaker still has a sizable 6,753 member dealer body. That number seems even higher when considering that US number two automaker Toyota makes do with only 1,445 retail locations.
Sales VP Mark LeNeve told Automotive News that GM has a lot of work ahead regarding dealer closings, and that the General will speed its efforts. While fewer dealers will likely mean that you'll have to drive a few miles further to get that Chevy or Cadillac you want, the remaining stores will make more money. (Or that's the general idea, at least.) Additional profits should enable dealers to spend more on advertising and facility upgrades to try and attract more customers.

[Source: Auto News (subs. req'd)]

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