Getting out of Dodge!
#41
05-29-2009, 07:39 PM
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#42
05-30-2009, 11:21 AM
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Join Date: Feb 2007
Location: Austin/Round Rock, TX
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Some of you guys that think decreasing the number of dealers will help the OEM bottom line still think that way? Dodge trucks will lose thousands of sales due to too few dealers too far away. It would have cost Dodge nothing to leave those dealers alone. Obama and his clan have a plan and they are running the show now from a position of total ignorance. Not going along cost Wagner his job. I hope to hear from him in a great interview soon about the Govt thugs. Don't forget, all of the GM shareholders will have worthless stock on Monday or Tuesday next week. They will issue new stock to the people they want to take care of.
From Bloomberg:
"Having fewer retailers may allow the survivors to sell more cars at higher prices, boosting profit.
“It’s a cruel day, but it’s one of the casualties of the situation,” said Mike Robinet, a CSM Worldwide Inc. analyst in Northville, Michigan. “Dealer consolidation is a fairly substantial reason that Chrysler had to go into bankruptcy and a very good reason why GM will need to go in as well.”"
and from the GM Letter (the reasoning was basically the same for Chrysler):
"GM told dealers in a letter the locations targeted for closing were measured by benchmarks including sales volume, customer feedback, capitalization, profitability and pairings with competing brands.
The notices went to “1,100 underperforming and very small sales-volume U.S. dealers,” GM said in a statement.
“It’s not something we do without a lot of consideration,” Mark LaNeve, GM’s North American sales chief, said on a conference call. “The dealers receiving these letters, unless they haven’t been paying attention at all, it should be no surprise at all to them.”
LaNeve said GM would follow the same reduction plan whether the automaker restructures in or out of court. An “orderly” wind-down would help preserve the value of dealers’ inventory, he said."
#43
05-30-2009, 06:02 PM
Your quote from Bloomberg makes my point. Fewer dealers helps only the surviving dealerships. I am not sure why some of you continue to argue this point. I had lunch yesterday with the owner of the second largest volumn Ford dealer in the nation. He has the same opinion that I have. I am simply trying to show people that closing dealerships has nothing to do with the manufacturer's bottom line. You are certainly entitled to your own opinion.
