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Posted on February 18, 2008 by Anthony Fontanelle | Posted under Automotive
GM To Continue Consolidating Dealers
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That is the main message GM will give to dealers in the all-GM make meeting today, CEO Rick Wagoner said in an interview with the Automotive News. Wagoner noted that over the past two to three years, the automakers have shut approximately 600 dealerships in the United States. And the exec wants to continue slashing GM's dealer count but realizes that consolidation has to come slowly. "It's a hard thing to make go too fast," Wagoner said. "You get everybody mad at you if you push too hard." Wagoner said that the Detroit-based automaker has a plan for dealer consolidation. "It would be irresponsible for us to not have that because we don't know when a dealer will want to move out, so we need to know here's the ideal number of (Buick-Pontiac-GMC) stores, and these would be the ideal locations," he said, adding that the challenge is that no dealers want to leave. The largest American automaker intends to have four retail channels - Chevrolet, Saturn, Buick-Pontiac-GMC and Cadillac-Hummer-Saab. Wagoner said that 80 percent of Buick-Pontiac-GMC sales will come through channeled stores carrying all three brands by year end. GM's next challenge is doing a similar channeling program with Cadillac, Hummer and Saab, he said. Big-volume stand-alone stores likely will remain, depending on the market, Wagoner noted. GM, however, will put more effort into three-brand stores for its luxury brands. With the continuation of consolidation, dealers are left under intense pressure. Dealers supporting the makers of GMC, Pontiac and Buick parts are struggling to stay. Mike Bowsher, a member of the automaker's National Dealer Council, said that GM has too many dealers. But he added GM's channel strategy will take "years and years" to do. “Meanwhile, GM must bring all dealers into the age of technology; the only way to survive in a slow market is to be on the Internet," Bowsher told Automotive News. “Dealers can expect the first part of 2008 to be slow but new products, such as the GMC Terrain small crossover, are coming." How tight is the situation? “Dealers are really going to have to watch inventory control and ex-penses and manage their business better than they ever have before because it could be a very challenging year, at least for the first half. We cannot afford to make one mistake in '08. It's that tight," added the 44-year-old Bowsher. About The Author: For more information about your parts needs like Buick parts 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. |
Tags: AUTO PARTS, BUICK PARTS
