GM "Expects" To End 2008 With 350 To 400 Fewer Dealers; Current Count Is 6,550

[Perian]

Link: http://www.autonews.com/apps/pbcs.dl...NA06/809220374

Amy Wilson - Automotive News

DETROIT — Through August, General Motors trimmed its U.S. dealership count this year by 226 stores, to 6,550.

And through year end, GM's U.S. sales chief expects the closure rate to quicken. The final toll for 2008? It could be 350 to 400 closed stores, said Mark LaNeve, GM's vice president of North America vehicle sales, service and marketing. That's what GM expects, not a target, he said.

That would compare with a reduction of 260 stores in 2007 and 87 stores in 2006. Given the industry sales downturn this year and the projection for 2009, GM wants consolidation activity to pick up, LaNeve told Automotive News.

GM Dealership Count* as of September 1, 2008:

Chevrolet: 3,786
Pontiac: 1,083
Buick: 557
Saturn: 404
Cadillac: 301
GMC: 289
Saab: 106
Hummer: 24

Total: 6,550

*Note: GM says stores with multiple franchises are counted under the brand considered to be the controlling franchise.


Full article at link.

[Clownzilla]

Well, these numbers are a little misleading because of the asterisk at the bottom. I would like to know the ACTUAL franchise count.

[Hurricane]

That seems like a lot of Pontiac dealers? With the alignment with GMC and Buick, shouldn't the number of Pontiac dealers be closer to the Buick and GMC numbers?

[Hurricane]

Originally Posted by Clownzilla

Well, these numbers are a little misleading because of the asterisk at the bottom. I would like to know the ACTUAL franchise count.

Aha, I just noticed that - the devil is always in the details, LOL!

[leelander]

in canada they're altogether-pontiac, buick, and gmc-gmc being the controlling franchise.

[Bokl]

so many pontiac dealers. wow and with low sales of pontiac and when you exclude fleet sales what do these dealerships sell??? Probably just used cars. Pontiac might as well go out of business.

[PontiacBixler]

you have to remember that the Pontiac dealerships' numbers most likely include Buicks and GMCs. Pontiac is usually the controlling nameplate in the trio dealerships.

[fp115]

Originally Posted by Bokl

so many pontiac dealers. wow and with low sales of pontiac and when you exclude fleet sales what do these dealerships sell??? Probably just used cars. Pontiac might as well go out of business.

Did you miss the fine print?
"GM says stores with multiple franchises are counted under the brand considered to be the controlling franchise."

That means Pontiac is the controlling franchise, but it may contain Buick and GMC.

[t-rex]

What defines "controlling" franchise?

Pontiac seems to trump Buick and GMC, but since there's never been such thing as a standalone GMC store, what would GMC trump?

Maybe "controlling franchise" was the dominant brand at a dealer before BPG consolidation...

[stick076]

Originally Posted by fp115

Did you miss the fine print?
"GM says stores with multiple franchises are counted under the brand considered to be the controlling franchise."

That means Pontiac is the controlling franchise, but it may contain Buick and GMC.

Trolls don't adhere to fine print

[FierySolstice]

OK so they want to get rid of approximately 400 dealers? Saturn has 404. There you go!

[Rocket 88]

While consolidation and reduction of dealership is generally needed it is also harmful in short term. I've seen several dealerships close locally. Often you end up with an empty building which screams "this brand out of business."

Many dealerships have been good enough to pull down signs, but most folks driving past know exactly what was there.

On the other side of the coin, one of the local Buick dealerships is a Buick-VW dealer but in reality only sells VW. Today he has 3 Buicks on the lot and acres of VWs. I'm sure he is just holding on for a buyout.

[Chaz_23]

Excellent news. Hopefully more will go away in the next years. What's taking these people so long to change careers?

[genjy]

I haven't seen any GM dealerships closed down, yet.

But I know three neighboring SoCal Ford dealerships just closed down.

The Ford dealership in Claremont just turned into a Toyota dealership, the one in Pasadena closed down overnight, and the one in Temple City is deep in the process of closing down.

[GMCSonoma]

Originally Posted by t-rex

What defines "controlling" franchise?

Pontiac seems to trump Buick and GMC, but since there's never been such thing as a standalone GMC store, what would GMC trump?

Maybe "controlling franchise" was the dominant brand at a dealer before BPG consolidation...

Actually there has been around here...most are gone except those that deal with medium duty still.


My dealer has all 5 regular GM franchises....Pontiac is our administrative...

I know it all depends on how the fraqnchise was originally set up with GM to begin with...