GM Inside News Forum - View Single Post - GM: Tell your dealers to shape up or ship out!

t-rex · 04-04-2007, 04:36 PM

I have a relative with a successful Premium Used Car Center (as he prefers it to be called) who has been looking lately into getting a new brand franchise, preferably with a fast-growing import brand.

By his account: GM make it difficult to get a Saturn franchise, as they feel two dealers for an area of 1.5 million is more than enough. Hyundai are probably tied with Toyota and Lexus as far as having the most stringent requirements on its dealers. Hyundai deliberately keep the number of its dealers low, to encourage large dealerships, which is supposed to instill public confidence in the brand. Hyundai franchise fees are also incredibly expensive for what's deemed to be a "budget" brand. Hyundai are simply fanatical about their dealer's performance.

Suzuki have the lowest franchise fee (a fraction of even what Kia's franchise fees are), the most flexible and attractive financing, and have numerous plans and programs available that benefit both Suzuki and the dealer. Suzuki appear to have a very "team-oriented" approach to its relationship with its dealers. If my cuz gets his way, New Orleans may be seeing a new Suzuki dealership opening within the year.

04-04-2007, 04:36 PM	#5 (permalink)
t-rex 6.2 Liter LS9 Supercharged V8 Join Date: Jul 2006 Location: New Orleans, Louisiana Drives: 1997 BMW 328i S Posts: 5,526	Re: GM: Tell your dealers to shape up or ship out! I have a relative with a successful Premium Used Car Center (as he prefers it to be called) who has been looking lately into getting a new brand franchise, preferably with a fast-growing import brand. By his account: GM make it difficult to get a Saturn franchise, as they feel two dealers for an area of 1.5 million is more than enough. Hyundai are probably tied with Toyota and Lexus as far as having the most stringent requirements on its dealers. Hyundai deliberately keep the number of its dealers low, to encourage large dealerships, which is supposed to instill public confidence in the brand. Hyundai franchise fees are also incredibly expensive for what's deemed to be a "budget" brand. Hyundai are simply fanatical about their dealer's performance. Suzuki have the lowest franchise fee (a fraction of even what Kia's franchise fees are), the most flexible and attractive financing, and have numerous plans and programs available that benefit both Suzuki and the dealer. Suzuki appear to have a very "team-oriented" approach to its relationship with its dealers. If my cuz gets his way, New Orleans may be seeing a new Suzuki dealership opening within the year.