Analyst says dealer cuts 'didn't make any sense'

[redwhiteandblue]

Originally Posted by BlackGTP

There was another thread in the past month discussing the dealer closings which had an average amount most of these dealers sold annually. It was a pretty low amount. In other words MOST of the dealers being closed will not give Ford, etc a beach head of any material nature. GM is closing most of these dealers because they sell a car a month.

Originally Posted by SuperSS27

The ones that we can't understand why they closed could have legal problems that they cannot disclose to the general public. Maybe the dealer doesn't pay them back on time, or there are multiple law suits, or really bad customer service.

Its way to easy to speculate that they were wrong in this case since so many are being closed, but give it some time to see the results of the action before criticizing. In essence, this move is going to strengthen the overall dealership experience because the existing dealers are going to have increased sales which lead to better facilities, better customer service and more sales for GM....like people have said before.

Short Term pain for Long Term gain.

Seriously?? Are you ok with making these type of generalizations??

I understand some of the views and comments posted due to the media reports and statements from GM, but please understand that this is not black and white. There has been a lot of rumors & debate about which dealers should and shouldn’t be closed.

We are a Buick-Pontiac-GMC dealership that GM chose to "wind-down" or currently and most accurately "terminate"-- due to the fact that we cannot order any new inventory AND we were denied the inventory that we had on order prior to the "wind-down" even though we were told for months that we would be able to receive the vehicles that we had on order prior to the "wind-down." We have been told that these vehicles would be either diverted to other dealerships or would be sent to a "holding lot"-- where they would SIT until GM decided to open another point (or give our dealership to another dealer).

I would like to give you a short synopsis of our dealership's performance. We are a successful family-owned and operated General Motors dealership that has been in business for over 18+ years. We have been consistently ranked in the top 8 in sales for our state (with 80+ BPG dealers). We also rank in the top 50 for sales in our entire region (dealers out of 11 states). GM has stated that most dealers terminated were low volume dealers selling less than 50-100 new vehicles per year. We have sold in recent past years more than 100+ new vehices (BPG) PER MONTH and averaged selling over 700+ new vehicles per year.

We also rank in the top 2 in the state for CSI or customer satisfaction as well as the top 90 percentile in the country for customer satisfaction.

An extremely important issue is the fact that GM & Chrysler are closing down dealerships only to REOPEN another dealer in the same area. It is so important for everyone to understand that GM & Chrysler have used the guise of closing "underperforming" dealerships to support their need to reduce their dealer network. However, there are so many numerous stories of successful and profitable dealers who have unjustly lost their franchises-- only to have them given to their competitor down the street and reopened-- which is exactly the case in our situation. In our situation, it is a well-known fact that our location has been highly sought after for years by other "connected" dealers due to our prime location.

In reference to the statement that there are too many GM dealers, which is why GM terminated dealers, and that customers will go to the nearby GM dealership that GM chose to remain - I can 100% guarantee you that our customers have not gone to any nearby BPG dealer or even the Chevy "Mega Dealer" down the street that GM chose to go forward with the "New GM."

In these last few months, due to our low inventory-- we have lost an enormous amount of sales to the nearby Toyota, Honda, Nissan, and Ford dealers-- just down the street. The sales numbers completely speak for themselves and prove this point. Even when stating this fact to our GM reps-- they say "You're right....We can't argue this fact." In just our location alone-- GM is losing an innumerable amount of market share. Tell me....does that make any sense?????

I have to ask-- Are you ok with the fact that your taxpayer dollars are allowing GM to have vehicles sit on a holding lot meanwhile they are losing market share to Ford and the imports such as Toyota, Honda, and Nissan-- for absolutely no other reason than the fact that they are trying to force us out of business earlier than the October 2010 date-- hoping that we will cave in and go out of business and then they can give our business to the nearby floundering, BUT, well-connected Chevy "mega dealer?" Again, I have to ask -- Does this make any sense....especially based on the principles of free enterprise????

After reading these posts-- I felt the need to let people know what is really going on-- especially in our situation. I ask that you do not make "generalizations" but, PLEASE research and read into individual dealership closings and their stats and draw your own conclusion. Thank You.

[AMERICA 123]

Originally Posted by BigThreeForever

At last, some common sense from an analyst.

Yep.

Here BigThreeForever, is another one - slightly oblique.... from 10 July 2009.

Jody Murphy nailed this better than anyone else which is why it was ignored.

Hino < the chronic Toyota failure > could fill void left by GM

By Jody Murphy, Special to The Times

POSTED: July 10, 2009

General Motors' decision to cease production of its medium-duty trucks could be an opening for Hino Motors.

Last month, GM, which recently filed for bankruptcy protection, announced in early June it was ceasing production of its medium-duty truck line by July 31.

Sandy Ring, general manager of external and legal affairs for Hino Motors Manufacturing USA, said the news could be a positive for Hino.

"It creates some gap in the marketplace," he said.

Tim Matheny, president of Matheny Motors, said GM's decision has affected about 450 medium-duty truck dealers nationwide, including Matheny Motors.

"It was a significant event for our dealership," he said.

"It is an opportunity for Hino, along with the remaining dealers," Matheny added. "Hopefully, it will be a great opportunity for Hino."

Hino's Williamstown facility is the company's only truck facility in the United States.

The company, a division of Toyota, also has a plant in Canada and another in Mexico that is expected to begin operations soon.

Matheny said GM will dissolve franchises over the next 18 months.

By October 2010, the company will establish some service points to support the trucks.

Matheny Motors, which is still a GM light and heavy duty truck dealer, is a likely candidate to become a service point, according to Matheny.

In addition to carrying GM, Matheny also sells Hino and Isuzu trucks.

Ring admitted Hino, like GM, has not been immune to economic woes.

"It is fair to say the economy has been tough on the transportation sector overall and we have not been immune to that," he said.

In March, Hino announced a wage freeze for hourly workers and a temporary wage reduction for the salaried workers in Williamstown.

In April, the company eliminated about 10 positions due to economic conditions, according to Ring.

Ring said the company is focused on the Japanese concept of "kaizen" (continuous improvement) to refine its processes and become more efficient.

And he expects things to improve down the road.

"We have taken this opportunity to try to improve ourselves," he said.

"Overall, the trucking industry should be on the edge of a recovery.

Current economic conditions notwithstanding, Hino is optimistic about the long-term future and committed to its presence in Williamstown."

Subscribe to The Marietta Times

http://www.mariettatimes.com/page/co...2&showlayout=0

The whole damn thing was done to benefit others..... primarily those with money on the outcome for Toyota and sadly, Ford.

[scooter10572]

Originally Posted by Extreme4x4

Volume of sales, in small rural dealerships, will be low............... duh.

However, if the business is viable, who cares. Rural dealerships are the Domestics stronghold, and GM is giving much of that away.

Who will benefit the most?? Ford.

BTW, alot of small, added together, equals large.

In my area of 25K, it looks like our local Chevy dealership is going out. They were paired with Dodge/Jeep/Chrylser, but were a seperate building on the same lot. The next closest GM dealership is 90-100 miles away.

Do you think they lose their GM presence in my area?? You betcha. A customer would have to be loyal beyond belief, to travel that distance to buy and service. This is why foreign presence is so small in our area. The local Ford store, on the other hand, is laughing all the way to the bank (not really, as they are sad for the jobs lost, in a limited job market).

BTW, I would venture to guess that the Chevy store moved 20-50 vehicles a month. The vast majority being high margin trucks.

Stupid. Thats about all I can say.

I work for a smaller rural dealer thats been there for 52 years but apparently GM feels thats long enough. They told us to build a new facility closer to a major hi way or they aren't renewing our franchise agreement,I have spoke with dozens of our customers who say they will never buy any Gm again. The morons in GM and the auto task force have not a clue, the domestics do not sell well in metro areas. Thats where our young "educated morons " live in the greatest numbers. This will backfire for GM in the long run for sure, I know we aren't the only dealer with loyal customers.I have been a dealership tech for 20 years now and can say as of now I could care less if GM folds up!! Screw them like theyv'e screwed so many hard working people,the problems in GM started decades ago with piss poor management totally out of touch with reality and they continued to get worse with each new idiot at the helm. I will never buy another GM vehicle after this, they took away my livelihood and I will not reward them with a purchase. I and all flat rate techs have been screwed on a daily basis fixing the pieces of **** that gm continued to build with out fixing the problems while loosing customer after customer then blame the dealers for it???? I didn't build them although I wish I did since then I'd make more money and have WAY better benefits and more time off to do a MUCH EASIER job, so the next time your car breaks down under warranty dont' get mad at the tech trying to fix it blame GM they built it.

[jzchev28]

Originally Posted by scooter10572

I work for a smaller rural dealer thats been there for 52 years but apparently GM feels thats long enough. They told us to build a new facility closer to a major hi way or they aren't renewing our franchise agreement,I have spoke with dozens of our customers who say they will never buy any Gm again. The morons in GM and the auto task force have not a clue, the domestics do not sell well in metro areas. Thats where our young "educated morons " live in the greatest numbers. This will backfire for GM in the long run for sure, I know we aren't the only dealer with loyal customers.I have been a dealership tech for 20 years now and can say as of now I could care less if GM folds up!! Screw them like theyv'e screwed so many hard working people,the problems in GM started decades ago with piss poor management totally out of touch with reality and they continued to get worse with each new idiot at the helm. I will never buy another GM vehicle after this, they took away my livelihood and I will not reward them with a purchase. I and all flat rate techs have been screwed on a daily basis fixing the pieces of **** that gm continued to build with out fixing the problems while loosing customer after customer then blame the dealers for it???? I didn't build them although I wish I did since then I'd make more money and have WAY better benefits and more time off to do a MUCH EASIER job, so the next time your car breaks down under warranty dont' get mad at the tech trying to fix it blame GM they built it.

so why isnt your dealership willing to relocate? if you were so unhappy with your job why not get another one? auto techs are in demand. you of all people should have been happy gm was makeing junk, if their cars never broke you wouldnt have had a job in the first place. all i read out of your post is "waaahhhhnnnnaa....i hate GM"

[redwhiteandblue]

Originally Posted by redwhiteandblue

Seriously?? Are you ok with making these type of generalizations??

I understand some of the views and comments posted due to the media reports and statements from GM, but please understand that this is not black and white. There has been a lot of rumors & debate about which dealers should and shouldn’t be closed.

We are a Buick-Pontiac-GMC dealership that GM chose to "wind-down" or currently and most accurately "terminate"-- due to the fact that we cannot order any new inventory AND we were denied the inventory that we had on order prior to the "wind-down" even though we were told for months that we would be able to receive the vehicles that we had on order prior to the "wind-down." We have been told that these vehicles would be either diverted to other dealerships or would be sent to a "holding lot"-- where they would SIT until GM decided to open another point (or give our dealership to another dealer).

I would like to give you a short synopsis of our dealership's performance. We are a successful family-owned and operated General Motors dealership that has been in business for over 18+ years. We have been consistently ranked in the top 8 in sales for our state (with 80+ BPG dealers). We also rank in the top 50 for sales in our entire region (dealers out of 11 states). GM has stated that most dealers terminated were low volume dealers selling less than 50-100 new vehicles per year. We have sold in recent past years more than 100+ new vehices (BPG) PER MONTH and averaged selling over 700+ new vehicles per year.

We also rank in the top 2 in the state for CSI or customer satisfaction as well as the top 90 percentile in the country for customer satisfaction.

An extremely important issue is the fact that GM & Chrysler are closing down dealerships only to REOPEN another dealer in the same area. It is so important for everyone to understand that GM & Chrysler have used the guise of closing "underperforming" dealerships to support their need to reduce their dealer network. However, there are so many numerous stories of successful and profitable dealers who have unjustly lost their franchises-- only to have them given to their competitor down the street and reopened-- which is exactly the case in our situation. In our situation, it is a well-known fact that our location has been highly sought after for years by other "connected" dealers due to our prime location.

In reference to the statement that there are too many GM dealers, which is why GM terminated dealers, and that customers will go to the nearby GM dealership that GM chose to remain - I can 100% guarantee you that our customers have not gone to any nearby BPG dealer or even the Chevy "Mega Dealer" down the street that GM chose to go forward with the "New GM."

In these last few months, due to our low inventory-- we have lost an enormous amount of sales to the nearby Toyota, Honda, Nissan, and Ford dealers-- just down the street. The sales numbers completely speak for themselves and prove this point. Even when stating this fact to our GM reps-- they say "You're right....We can't argue this fact." In just our location alone-- GM is losing an innumerable amount of market share. Tell me....does that make any sense?????

I have to ask-- Are you ok with the fact that your taxpayer dollars are allowing GM to have vehicles sit on a holding lot meanwhile they are losing market share to Ford and the imports such as Toyota, Honda, and Nissan-- for absolutely no other reason than the fact that they are trying to force us out of business earlier than the October 2010 date-- hoping that we will cave in and go out of business and then they can give our business to the nearby floundering, BUT, well-connected Chevy "mega dealer?" Again, I have to ask -- Does this make any sense....especially based on the principles of free enterprise????

After reading these posts-- I felt the need to let people know what is really going on-- especially in our situation. I ask that you do not make "generalizations" but, PLEASE research and read into individual dealership closings and their stats and draw your own conclusion. Thank You.

Just checking to see if there were any responses to my post. I really wish the American people would truly see what is going on. I understand that if you do not work at a dealership you may not understand what is going on or even care, but because this is affecting so many peoples lives, families, and communities-- I ask that you please research or check into these closings and find out the facts for yourself.

It is a complete injustice that GM & Chrysler, along with the Auto Task Force, have been allowed to target and close successful businesses. What they have done is unethical, borderline criminal, and totally UNAMERICAN -- especially due to the fact that in so many cases they are closing a dealer only to turn around and give to their competitor down the street-- which is exactly what is happening to us.

As I have stated earlier, we are a successful family-owned and operated General Motors dealership that has been in business for over 18 years. We have employed 50+ with a payroll over $2.5 million a year and contribute over $1.5 million in taxes yearly. We also actively give back to our community by sponsoring and supporting local schools, sports teams, education programs, church groups, and civic groups in our community. A few examples include donating a vehicle for raffle at a local high school, loaned a vehicle for the local Driver's Education programs, hosted events at our dealership to support our troops, college scholarships, and much more.

I ask that you contact your Congressmen & Senators-- and ask them to support HR2743 & S1304 in order to restore the constitutional rights of auto dealers that were unjustly terminated by GM & Chrysler. How can you not support legislation that would preserve the principles of free enterprise upon which our great country was founded upon? The outcome of this matter will impact the lives of EVERY privately capitalized businessman/woman in America and will affect communities across the country. It will also save thousands of jobs.

[goochman]

Well,

Seems the 'Consolidation' was used not only to close down duplicate dealers but also those dealers GM/Chrysler didnt like. As posted in another thread my jeep dealer was closed and lo and behold the dealership across the street is now the new Jeep dealership.

[Extreme4x4]

Originally Posted by jzchev28

so why isnt your dealership willing to relocate? if you were so unhappy with your job why not get another one? auto techs are in demand. you of all people should have been happy gm was makeing junk, if their cars never broke you wouldnt have had a job in the first place. all i read out of your post is "waaahhhhnnnnaa....i hate GM"

Frankly, that is a crappy way to talk to somebody who is losing their job.

Have you ever been to rural America?? Do you read GM demands, and think that some of them are even remotely possible???

Many rural communities are not directly off of a major highway. You have to take off-ramps to get to them. If you know all of the banks that are willing to lend a MILLION plus, to build a new GM dealership.............. please tell the owner of this dealership, as I am sure it will be news to him. Also, with this economic climate, are you willing to risk MILLIONS, on the off chance that the economy will actually recover in any amount of time............. and you may actually be able to make your payment??

Geez, I swear that some people do not use their brains before they post.

The reality is, GM doesn't care if their demands are realistic or not. The dealership is a dot on a map............. the dealership is reduced to a number. They are not really looking into the details of every shop that they are targeting............ they are looking at sales numbers only................. and probably a bit of "what has that dealership owner done for us lately." If you don't think that still happens, you are nuts.

I see that many of the dealerships that are closing, are not closing because they suck, but because they are family owned. As in, GM doesn't think they are big enough to count.

I hope that all of the rural communities that are hurt by this, show their appreciation by completely shunning GM products. The sales declines won't show today............. but lets revisit this at the end of 2010.

[normsf]

Hmmm wondering how many "well connected" dealers are democrats. Truely a injustice to our private property, but even the supreme court took those away in the eminent domain case. http://www.cbsnews.com/stories/2003/...in575343.shtml Thanks Norm