GM Will Eliminate 1,100 US Dealers
GM told 1,100 dealers today they will be eliminated by late 2010.
The GM dealerships contracts end late 2010 so that is when 1,100 US dealers will be eliminated.
The 1,100 dealerships are not owned by GM but decided to make there dealer network smaller in an attempt to save money and boost sales at the remaining dealers.
Some of the 1,100 dealers could fight this in court but GM could go bankrupt and list all the dealers as creditors so then they would get nothing or very little.
GM has about 6,000 dealer network and wants to cut 40% of that by end of 2010.
Also, GM will sell or phase out 500 dealers that market Hummer, Saab and Saturn.
FedEx letters sent today brought bad news to the GM franchises around the country.
The letter basically stated that dealers had been judged on sales, customer service scores, location, condition of facilities and other criteria.
See the average customer does not realize how important these customer service scores mean to a dealership.
Each dealer gets bonus money for positive or green customer service scores and then the bonus money flows down to the salesman.
If you ever buy any car and your not satisfied with the way the car dealer treated you bring up the fact that you will no give them a very good customer service score. Then watch the sales manager bend over backwards to make you happy sometimes giving you free stuff like oil changes for 3 times or one year.
Short URL: http://www.askcarexpert.com/?p=343
Posted by blogadmin
on May 15 2009. Filed under Car Reviews.
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