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Posted on February 18, 2008 by Anthony Fontanelle | Posted under Automotive
Dealers Top Priority For Big 3
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Amidst weakening dilemmas, the automakers knew their allies include reliable dealers. As such, the automakers and dealers are poised to turn profit in brutal market. But this plan may mean bad news to other dealers. Automakers know that understaffed and shabby dealerships could turn off shoppers. Dealerships are one factor that motivates shoppers. Moreover, automakers are planning to slash and consolidate their dealerships in order to attain focus. According to the Detroit News, that reality has Detroit's Big 3 searching for ways to help their legions of dealers make money in a brutal U.S. market. And it's become a top priority for the automakers as they trail another painfully sluggish year for the industry. "A lot of us are concerned. Are we going to be here next year? Are we going to survive?" said Dale Daniels, a Ford, Lincoln and Mercury dealer in Oklahoma who was attending the National Automobile Dealer's Association convention. "A lot of us are just hanging on." Daniels said that he felt reassured the automaker is making the right moves product wise, but he said that dealers still worry that the sinking economy will offset improvements Ford has made to the look and quality of its products. Ford Motor Co. told its Ford, Lincoln and Mercury dealers Sunday the company would increase profit margins around one percent on some models so dealers could get more cash when they sell the vehicles. The money will be used to upgrade the automaker's dealerships. At General Motors Corp., the latest moves involve consolidating luxury brands such as Cadillac, Hummer and Saab into one sales network. Chrysler, meanwhile, is introducing a massive plan to cut its dealer ranks and do away with overlapping models in its lineup. Chrysler officials said Saturday that many of its dealers should ideally be making two to three times what they earn today. To achieve that, Chrysler must have fewer dealers placed more strategically across America. The Big 3, have slashed costs, closed plants and cut jobs. This time around, the automakers will be entertaining deeper dealer reductions. And most dealerships fear the repercussions. Like a grille guard engineered to protect; do dealers have same refuge? "Manufacturers need to take our partnership seriously," said Dale Willey, chairman of the dealer association. "We're the first point of contact when someone is thinking about buying a car. We know better than anyone what people want." About The Author: For more information about your parts needs like grille guard visit your trusted online source. Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop. |
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