Domestics cut down the number dealerships

[RSS Robot]

Filed under: Car Buying, Buick, Chevrolet, Chrysler, DaimlerChrysler, Dodge, Ford, GM, GMC, Lincoln, Mercury, Pontiac


One of the issues ailing domestic automakers is a bloated sales network, which sometimes includes pitting two dealers of the same brand against one another within the same market. Chrysler, Ford and General Motors have been trying to make inroads into this problem over the past year, and while these efforts are for the good of the company, the effects take their toll.

According to Automotive News, the Big 2.5 cut 462 dealerships between them in 2006. So far in 2007, GM has killed off 222 of its own dealerships, compared to this time last year. Much of this effort is the consolidation of franchises that only sold a few of the automaker's brands, to now include as many as they can handle (i.e. a GMC dealership now carries Pontiac, Buick, Cadillac, HUMMER, Saab, etc.)

GM isn't alone in their neighborhood downsizing, as both Chrysler and Ford have made significant cutbacks so far this year, with the former nixing 134 dealerships, while the latter cut 126, when compared to 2006 figures.

The upside to all of these cutbacks is more profits for fewer dealers, but at the same time, dealers that have been in the business for decades are being forced to sell their stores to local competitors. As expected, these retailers are leaving their livelihood feeling bitter and dejected.

Whether or not any of this will make a difference to the Big 2.5's bottom line remains to be seen, but it should be interesting to see how many total dealers were lost in 2007 and how many more will be killed off in 2008.

[Source: Automotive News (Sub. Req.)]
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[SandyBoy]

Yes, and it's the smaller, family owned dealers that are being cut & the huge mega - frequently "Syndicate-owned" mega-million dollar" money depot(s) that are being allowed to continue and that's plain wrong. Having worked for years in the dealerships, I can tell that everything that is wrong with the car business, is born, bred, & harvested in the Mega Stores and that the Big 3 really don't give a darn how they treat ther consumer, nor how they treat their employees, and the Big 3 look the other way, and allow absolutely anything to take place, as long as the numbers are there at the end of the day. Ask yourself:
How can an individual or a group of, build a 5 million dollar store, pay interest on an inventory of 300 new cars on the ground & 200 used cars on the grounds, and carry mega mega million dollars of insurance, and a payroll of some 165 people and run full page newspaper advertisments, EVERY DAY of the week in 10 different newspapers, run TV spots for their dealership, and sell cars for $100. over invoice ???
To the intelligent mind, does this add up ?

This is a business that is totally out of control, nurtured by the greed and indiferance of the big 3 tpwards long time dealerships run & owned by private families who've "only" invested 2 or 3 generations of honest hard working people,
whose gratatude by the Big 3 is to now put them out of business, and favor the Unlimited source of Dirty-Money connections.

[Alexander]

It is not all the fault of the big three automakers. Every American wants their employer to pay for health insurance and other benefits. Yet as a consumer, this same American chooses not to buy products where the company offers these benefits, because the cost of the product is often higher, or the connotation of "Made in America" sounds bad to them.

[SandyBoy]

No, they want the big mega stores....out on the highway, ONLY!

Currently, in the entire state of New Jersey, there is but ONE (1) Buick Exclusive Dealership. There is also just ONE (1) Pontiac Exclusive dealership. All the rest are paired up with 1,2,3, or 4 other GM franchises. Chrysler is closing dealers at a record number. They no longer want 1 brand strores. They want Chrysler, Jeep & Dodge under one roof. They want them all out on the highways, not in-town stores. They want you to carry New Car Inventory of 250 units at all times.
50 Chrysler, 100 Dodge & 100 Jeep. They want you open from 9am to 10pm M-F and 9am to 8pm Sat. They want 20 car indoor showrooms ! If you don't have such....Goodbye.

[Guest]

I have to agree with sandyboy here. I've been around alittle while and it's been headed in this direction for about 20 years and it's a real shame. You better have fort knox behind you to even think about opening a dealership.

[SandyBoy]

The only people who make any decent money at them are the owner(s) - the General Manager and the Service Manager. E'Body else is a couple steps up from being entitled to welfare.

My son - age 22 doing accounting, but not yet a CPA, is making more $$$ than my lifelong friend, selling Toyotas, in this, his 37th year selling cars, at age 61 ..okay ?

Salespeople at department stores work 40 hours @ week, have health care, major medical, job interruption via illness protection, cost of living raises and more.
Car salesmen work 9AM to 9PM 4 days @ week & 9 to 7 Saturday, in 90% of all cases have little to no health insurance, or have it with $7,000 deductable. No raises, ever, and because they are on commission, they do not partcipate in minimum hourly wage, so....if you have a week when you do not sell a car, you get $100.00 for 58 hours, or $1.72 Gross an hour.
IF IF IF you start selling alot of cars, and making a decent wage, the highway whores will fire you, keep your "leeds" and hire an inner cites 19 year old with no experience and turn your leads over to him, and pay him $ 50.00 @ week and the promise of tons of money "when he gets experience, by which time he will have quit, anyhow!
This is how the mega stores operate. You MUST bait & switch the consumer, double team salesmen against the buyer, pressure them to buy, lie to the buyer, any & all things that we salesmen DON'T want to do.

But, go to a 75 year old dealership, with the same owner for many years (IF you can find one) and you'll see the differance in the treatment you recieve, but....GM, Ford, Chrysler & the big 3 imports want to dump those stores, as they only care about the bottom line. (Honda, Toyopet & Nissan).

[Guest]

Hey sandyboy, I know I hear you. I'm self employed. Gota pay it all. I'm thinkin about selling it all and go work in homedepot
or somthing. It's real frustrating. But then again I could start
bordentown again. Made a ton of $$$. A the good old days....
Bill