(Chrysler) & GM's Explanation(s) for Closing Dealerships
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Record Breaker
Joined: Feb 2007
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From: Austin/Round Rock, TX
(Chrysler) & GM's Explanation(s) for Closing Dealerships
Here's what they're saying:
"For GM's part, Henderson said closing dealerships will save the company $2.5 billion a year, or more than $1 million per dealership, as GM eliminates many direct support programs such as dealer incentives, as well as market and advertising support.
But he said that more important than cost savings was making its dealerships more efficient and competitive. GM's dealerships grew too quickly and began to compete with one another, Henderson said. That led to rundown facilities and the loss of top-tier sales staff.
"GM's success over the long haul ... will depend in no small part on a healthy, strong and profitable dealer network that can provide the industry's best customer service and enhance the image of our four remaining brands," he said. "Dealers who underperform simply cannot provide these benefits to our customers," he said."
So basically they claim each dealership costs them $1M a year.
You can read the full article here:
http://money.cnn.com/2009/06/12/news...ney_topstories
"For GM's part, Henderson said closing dealerships will save the company $2.5 billion a year, or more than $1 million per dealership, as GM eliminates many direct support programs such as dealer incentives, as well as market and advertising support.
But he said that more important than cost savings was making its dealerships more efficient and competitive. GM's dealerships grew too quickly and began to compete with one another, Henderson said. That led to rundown facilities and the loss of top-tier sales staff.
"GM's success over the long haul ... will depend in no small part on a healthy, strong and profitable dealer network that can provide the industry's best customer service and enhance the image of our four remaining brands," he said. "Dealers who underperform simply cannot provide these benefits to our customers," he said."
So basically they claim each dealership costs them $1M a year.
You can read the full article here:
http://money.cnn.com/2009/06/12/news...ney_topstories
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Joined: May 2008
Posts: 9,657
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From: Louisville, Ky
It's a shame, but some did have to go. I dodn't agree with all that did, because there is a non-5 Star dealer near me that got to stay open. They lost their 5 star status years ago and never got it back.
There are also many that only sell one of the 3 brands. I think this is going to change as well. My dealer is in the top 100 in the nation in sales of cars and parts and is only a Dodge dealership. They will soon be getting Chrysler and Jeep from a dealer that is closing that sold those two brands, but no Dodge.
I'm just glad that my dealer was spared. It is about 1/2 away vs the non 5 star dealer that is only 5 min. away. Last time I was there for a free oil change on another vehicle, they still had a brand new 2007 MegaCab truck that they had never sold.
There are also many that only sell one of the 3 brands. I think this is going to change as well. My dealer is in the top 100 in the nation in sales of cars and parts and is only a Dodge dealership. They will soon be getting Chrysler and Jeep from a dealer that is closing that sold those two brands, but no Dodge.
I'm just glad that my dealer was spared. It is about 1/2 away vs the non 5 star dealer that is only 5 min. away. Last time I was there for a free oil change on another vehicle, they still had a brand new 2007 MegaCab truck that they had never sold.
