GM closing dealers?

[Rich Z]

I've been hearing about GM closing down dealerships all across the country, and I have to admit I'm baffled by this. What's the purpose? Don't the dealerships BUY the cars from GM and mark them up for resale? So aren't they basically just shutting off sales opportunities? It's not like the dealerships are drawing a paycheck and this would save GM any money. Heck, it would be like me saying that in order to save money, I'm not going to sell my merchandise to anyone on the west coast of the USA. So who would get hurt the most by that? Why me!

Yeah, I heard a lame excuse that there were too many dealers and they were competing against each other. Maybe someone should tell GM about the internet...... I know around here (Tallahassee) it's pretty much a given that you aren't going to get any deals from Champion Chevrolet. And I have heard that same tune from other people within Florida as well.

Hell, GM, if you want to sell cars, make the public some offers they just can't pass up. You went and RAISED prices on the Corvettes when sales were dropping like a rock. What sort of sense did that make? Offer to sell me a brand new Z06 with all the bells and whistles at $65K and I'll be raiding the piggy bank to get it. No one really NEEDS a Corvette. So make some deals of a lifetime to people and see how well that works. We don't have to BUY cars, but you do need to SELL them.

Anyway, the only reason I can logically see for them closing all those dealerships is because they are trying to get sympathy from the masses. Spread the unemployment everywhere to get as much mileage as possible from the public, I guess. Otherwise their logic just escapes me....

[Shadow]

I can only see a limited benefit for GM and that's in shipping costs and dealership floor plan financing. Then again, I don't know sheite about how a dealership operates, so I'm speculating, you know, talking out my arse

As far as GM goes, greed and stupidity rear their ugly heads once again

It seems as though they might be considering focusing all thier sales onto a few select dealerships.

That way, they have more control over inventory, can force the dealerships to buy more or face potential closures, and keep deals from being done between dealerships (can you say price fix?)

IDK though, the whole thing makes no real sense to me.

I still say, let them go bankrupt, reorganize if they can get thier heads out of thier asses long enough to do it, and come back stronger and better

Then again...that would take leadership, wouldn't it?

[floridaZ]

The way I understand it, all the dealerships are privately owned. They pay fees to carry the title of Chevy dealer to the Chevrolet Motor Co, much like any franchise.

So if the way I understand it is correct, it would appear that they are eliminating sources of income. That said, I'm a punk kid with no interest in being an economist, so perhaps my grasp of the workings of the economy is as loose as a 90 year old guy's understanding of Japanese pop culture.

[thebeepster]

Nobody will remember GM management for its good decision making...what do you expect from a company that discontinues Pontiac and keeps Buick when 2008 sales figures show that Pontiac outsold Buick almost 2 to 1??

[85vette]

Originally Posted by thebeepster

Nobody will remember GM management for its good decision making...what do you expect from a company that discontinues Pontiac and keeps Buick when 2008 sales figures show that Pontiac outsold Buick almost 2 to 1??

I wondered about that when the decision was made. I didn't know the production numbers, but I could only imagine that Pontiac had to be out-selling Buick. Go figure....

[Rich Z]

I sure would like to see what the TRUE criteria is being used to decide which dealerships go and which ones stay.

I just got a phone call yesterday from Champion Chevrolet to let me know they just got in a new ZR-1. For chuckles, I asked what they were asking for it. The sales guy said $140K something.... I just laughed...... Got my chuckles alrighty....

[vett boy]

So the China and India are licking their chops .In comes more imports and they may come to ex GM dealers.

[Rich Z]

Originally Posted by vett boy

So the China and India are licking their chops .In comes more imports and they may come to ex GM dealers.

Yeah, you have a good point there. What does GM think those ex-dealers are going to do when they get the axe? Well, more than likely become dealers for GM's competition. Duh!

[Curacao]

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[85vette]

Originally Posted by Curacao

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All that can be said with one word.....Downsizing. A nice way to say "You're Fired"!