Crisis at Detroit Three drives industry rethink

[bone]

Originally Posted by fp115

How do you figure it would be possible to cut brands without billion dollar lawsuits? Figure that out, please as everyone begs for someone to just enlighten us on it.

Tough times require tough decisions. The best time for GM to illiminate dealers is when they have to pay the smallest closure deal. With the economy in the tank , credit just about not available, and finally no one wanting to buy GM dealerships, now is the time to pay them off.

[fp115]

Originally Posted by bone

Tough times require tough decisions. The best time for GM to illiminate dealers is when they have to pay the smallest closure deal. With the economy in the tank , credit just about not available, and finally no one wanting to buy GM dealerships, now is the time to pay them off.

Where do you expect GM to get cash to pay off dealers? It isn't exactly cheap to do it. Would cost at least a few billion dollars to do that.

[doh]

Originally Posted by fp115

Where do you expect GM to get cash to pay off dealers? It isn't exactly cheap to do it. Would cost at least a few billion dollars to do that.

The Credit Crunch, will kill off more Dealers than GM ever could. 6 Months ago I reported that GMAC was coming to their dealers asking for Prime+6% for their flor plan.

From what I have seen (personally) GM dealers are waymore faithful to GMAC than Ford dealers are to Ford Credit.

For 2009 Ford Canada has taken away the "Full Tank of Gas" program a mere $25000, to us a 200/year dealer. And they have taken away the "Dealer Reserve" on all Ford Credit Contracts. Anothrer $35000/year out of our pocket. Doing 200 units/year.

Costs of doing business is going up, and we are selling less profitable, small cars. Basically you have to sell a Focus for sticker to make as much as selling a "All holds Barred" rake the dealer over the coals, deal on an F 150.

Dealers will Fail, Many of them.

[fp115]

Originally Posted by doh

The Credit Crunch, will kill off more Dealers than GM ever could. 6 Months ago I reported that GMAC was coming to their dealers asking for Prime+6% for their flor plan.

From what I have seen (personally) GM dealers are waymore faithful to GMAC than Ford dealers are to Ford Credit.

For 2009 Ford Canada has taken away the "Full Tank of Gas" program a mere $25000, to us a 200/year dealer. And they have taken away the "Dealer Reserve" on all Ford Credit Contracts. Anothrer $35000/year out of our pocket. Doing 200 units/year.

Costs of doing business is going up, and we are selling less profitable, small cars. Basically you have to sell a Focus for sticker to make as much as selling a "All holds Barred" rake the dealer over the coals, deal on an F 150.

Dealers will Fail, Many of them.

Yes and that I don't doubt. All I am saying is that GM can't kill off their dealers as they want, but other scenarios will kill these dealerships. Eventually GM may have to step in to speed up the process, but they don't have the cash to kill off as many as people here are suggesting.