Can you explain how GM and Chrysler are saving money by closing dealerships?.. We have a small GM dealership 9 miles from here, sells maybe 50 new per year. How does its closing save them money? or are they closing stores they have money in?
I too fail to understand how closing places like that can save money. There is no such thing as a freebie from GM. They nail us hard for all that propaganda that you see posted around the showrooms at the dealerships.
I have pressured my GM parts reps for years to admit that GM has never given a rip about us small dealers. They won't deny it but they've never admitted I'm right either. They seem to be forced to tow the line.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
They are not closing them per se, they are allowing franchise agreements to lapse without renewal. There is also the image and marketing position that GM wants to convey and likely a target sales volume per dealership to achieve as well. It will just make it harder to buy a GM if you have to drive miles and miles to find one.
-- Edited by 73SC on Tuesday 19th of May 2009 11:15:31 PM
And easier to buy a import In Goderich, 12 miles from here on the Lake, Ford and Chrysler are gone, and all the old folks are driving Toyota,Honda, and tons of HYNDAI... too bad!
-- Edited by 427carl on Tuesday 19th of May 2009 11:12:19 PM
I guess I should ask when our contract is up. I know what month it is, just can't recall which year it's due. I suspect we will be done but haven't heard any talk as such.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
It was well known when I was at a GM dealer that GM want's owners with very deep pockets who can afford to do the "image" makeovers of their dealerships, can carry a large volume of stock and can easily afford the training and special tools that GM requires (forces) dealers to have. They even prefer to have dealer principals who own more than one store. I suspect the dealer I worked for last year will be on the chopping block. I think the word is supposed to come down in the next couple of weeks.
thanks for your answers it shows me what is going on.... My son-in-law works for Cami (19yrs), and he mentioned the other day, that the re-working of the contracts, doesnt touch their base rate! why? Union and government get their shares(dues&taxes) from the base rate funny
thanks for your answers it shows me what is going on.... My son-in-law works for Cami (19yrs), and he mentioned the other day, that the re-working of the contracts, doesnt touch their base rate! why? Union and government get their shares(dues&taxes) from the base rate funny
Well Carl, you know the union and the govt. are only looking out for themselves. Just listen to that union jackass Lewenza on the radio. He's only concerned about the union, not the members or the company that employs those members. I'm so sick of hearing about it and all the hardships those poor people are going to have. Most of my pension contributions were wiped out in the last year. That was money I put away, not a company I worked for, so I don't want to hear them whining anymore. A lot of people I know feel the same way about it.
In South Africa, one of the manufacturers are closing 28 dealerships. The reason given is that they (Dealers) are offering such high discounts that the manufacturer is suffering! The dealerships are competing against each other and that is not good for business!
Well Carl, you know the union and the govt. are only looking out for themselves. Just listen to that union jackass Lewenza on the radio. He's only concerned about the union, not the members or the company that employs those members. I'm so sick of hearing about it and all the hardships those poor people are going to have. Most of my pension contributions were wiped out in the last year. That was money I put away, not a company I worked for, so I don't want to hear them whining anymore. A lot of people I know feel the same way about it.
I hear you and agree after 35 years working for a Ingersol area family, I got my CPP and a kick in the ass.... I hear you
thanks for your answers it shows me what is going on.... My son-in-law works for Cami (19yrs), and he mentioned the other day, that the re-working of the contracts, doesnt touch their base rate! why? Union and government get their shares(dues&taxes) from the base rate funny
Well Carl, you know the union and the govt. are only looking out for themselves. Just listen to that union jackass Lewenza on the radio. He's only concerned about the union, not the members or the company that employs those members. I'm so sick of hearing about it and all the hardships those poor people are going to have. Most of my pension contributions were wiped out in the last year. That was money I put away, not a company I worked for, so I don't want to hear them whining anymore. A lot of people I know feel the same way about it.
Sure not defending unions but, but pension money was/is part of wages earned at an employer and are to be funded at least to an 80% level regulated by the government. My father's pension was cut by 30% because when the company closed the pension was funded only by 63% so basically someone (the company) stole 17% of those men's earnings thats without factoring in the losses in the investment via stock market or what ever-when we lose money we invested for private pension its poor investing. Also there is a plan in effect with the government that guarantees a company pension to $1000 per month so when they say the pensions could be lost its an $1800 monthly pension dropping to a $1000 monthly pension that most of the private sector doesn't get anyway. I think most people don't care to hear about the unions squeak because we were all jealous of the money its members earned-now that said-if a manufacturing worker didn't make $20-$30 per hour a parts guy wouldn't make $15, companies pay wages according to profit in the industry. If they couldn't afford it they shouldn't have paid it in the first place-the only reason Honda/Toyota come in with a lower all in wage is because they have nobody on pension. There have been major incentives in recent years to retire the high senority workforce so it would be easier to negotiate with the lower senority needy employees-governments help with these incentives because it costs less than employment insurance/programs for those that would lose their jobs on the low end. So a 50 or 55 year old guy retires with pension and lives 30 years-it costs a lot of money, in the past we worked them until 65 letting most live to 70-75 costing less. The labour cost in manufacturing is estimated at just 7%-its just good business to keep us at each others throats.
It was well known when I was at a GM dealer that GM want's owners with very deep pockets who can afford to do the "image" makeovers of their dealerships, can carry a large volume of stock and can easily afford the training and special tools that GM requires (forces) dealers to have. They even prefer to have dealer principals who own more than one store. I suspect the dealer I worked for last year will be on the chopping block. I think the word is supposed to come down in the next couple of weeks.
Yes, I would agree with that-I had that feeling 15 years ago when I was the assistant manager in a GM dealer bodyshop.
It was well known when I was at a GM dealer that GM want's owners with very deep pockets who can afford to do the "image" makeovers of their dealerships, can carry a large volume of stock and can easily afford the training and special tools that GM requires (forces) dealers to have. They even prefer to have dealer principals who own more than one store. I suspect the dealer I worked for last year will be on the chopping block. I think the word is supposed to come down in the next couple of weeks.
Todd, even doing all the things you list isn't enough. A Winnipeg dealer that got chopped yesterday is a perfect example. I think his building is less than 10 years old. Beautiful building, etc but not enough to please the big wigs at GM.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
It was well known when I was at a GM dealer that GM want's owners with very deep pockets who can afford to do the "image" makeovers of their dealerships, can carry a large volume of stock and can easily afford the training and special tools that GM requires (forces) dealers to have. They even prefer to have dealer principals who own more than one store. I suspect the dealer I worked for last year will be on the chopping block. I think the word is supposed to come down in the next couple of weeks.
Todd, even doing all the things you list isn't enough. A Winnipeg dealer that got chopped yesterday is a perfect example. I think his building is less than 10 years old. Beautiful building, etc but not enough to please the big wigs at GM.
We never know why-
Atlas was very profitable when Sammi went down thats why Slater bought us but they were weak and took us down with them.
I used to hold my head high when I told people I am a GM parts manager. It's to the point of hanging my head. I am almost glad some days that I am no longer the parts manager but am a parts counter man. Somehow it associates me less with the GM we know today, if that makes sense.
I am not sure how much I want to be associated with a company that seems to not be able to make rational decisions. They really need a shakeup to get on their feet again.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
Too many dealers chasing too few sales = cut throat competition, undercutting and lower revenues and profits for both GM and the dealers. GM and it's dealer network is still set up as if it is still the glory days and they had 50% of the market, not the 20% or so it has now. Plus there is a cost to GM to administering so many dealers - zone reps, warranty claim management, ensuring all the dealers are up to speed on training, equipment, parts inventory, etc., it's all part of the overhead that GM has to manage from head office. They want to shrink that overhead significantly and can't be bothered supporting dealers that they have deemed aren't worth the effort for what they produce.
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Hillar
1970 LS4 (eventually an LS5) Laurentian 2dr hdtp -and a bunch of other muscle cars...
