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Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

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  • Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

    http://www.bangshift.com/blog/Friday...-and-Fast.html

  • #2
    Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

    It's almost to the point of skip the glass and leave the bottle.........this news isn't surprising, but still sad and infuriating at the same time.

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    • #3
      Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fa

      This is tough to hear, but I suppose they have to do what they have to do. It literally broke my heart when my old Buick dealer closed a few years ago, but I understand that the land became more valuable than the dealership. Sux!

      When I was a kid growing up in the greater Detroit area, getting a job with GM meant you were set for life. Come in when you were supposed to and do the jobs as assigned and you had it made. You and your family had health care (the finest, no expense spared), you could buy a house and a car, and there would be enough left to send the kids thru college as long as you were a little bit careful. I'm having a hard time shifting my paradigm, if you know what I mean.

      Best to all who are affected by this. I want to think that they will come out OK, but it's hard to see how a career in Fast Food will equal a lifetime with GM.

      Dan

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      • #4
        Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

        Out of all those though are already closed up? Especially the under-performing ones.
        Escaped on a technicality.

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        • #5
          Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fa

          I hope that "under-performing" includes some of the mega-dealers that every metro area has far too many of and not just the smaller more rural dealerships that for the most part have been around far longer.

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          • #6
            Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

            GM executives have been quick in denying rumors that emerged yesterday claiming that GMC and Pontiac will be eliminated, and said there are no plans to terminate franchise agreements by June 1.


            "The strategy we laid out for you is still the strategy," sales chief Mark LaNeve said in an interview with Automotive News, referring to February's restructuring plan submitted to the U.S. Treasury Department. "Are we working on it, tweaking it, examining every aspect of it? Yes, but nothing has changed with our strategy, he said.

            Yesterday, Motor Trend had reported that people close to discussions between GM and President Obama's automotive task force said that the elimination of GMC and Pontiac were being discussed, as well as an accelerated timetable for closing up to 1700 dealers.

            But LaNeve said that the rumors "are just unfounded, unsubstantiated and untrue."

            "Buick and GMC are very profitable brands and we have plans to make them even more profitable," he told Automotive News. Of the task force, he said "they're not pressuring us to give up on anything."

            Although GM will not close all its targeted dealerships by June 1, LaNeve did say that GM will target metro areas for consolidation. It will consider operator effectiveness, location and working capital when it considers which dealerships should close.


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            • #7
              Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

              I hate to think like this ...but.... I would wager that we lose an awful lot of the local mom n pop dealerships. Those giant dealers in the larger cities just overwhelm the small dealers when it comes to efficiency...Hence better profits. And GM (who is forced to do it) Is gonna make those decisions based solely on profitability. Ya know...Buick was needing a boost and GM really pushed them in china...with success......... I sure wish they had pushed the chinese into Pontiacs instead. Pontiacs just look cooler.
              Mike in Southwest Ohio

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              • #8
                Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

                Evolution, survival of the fittest, the strong will survive.

                GM has been the bloated goat for way too long.

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                • #9
                  Re: Friday Excuse to Go Home Early and Drink: GM Axing 1,700 Dealerships, and Fast

                  This is what happens when a car company like GM goes from 50% market share in 1962 to 22% today.

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