GM buries Rasom E Olds

[EFConn]

What are some thoughts from the Dealer Body, is this a "good thing" or does it simply show that GM continues to punish their Dealers for Management incompetence.

[sallen1]

If you have been watching what's been going on with GM's network planning, this 'phase-out' of Oldsmobile should come as no suprise.

There are only 63 single point dealers out of 2800. I suspect a good portion of the total are dualled only with Cadillac, and the rest with some multiple of GM nameplates. In our area there are no exclusive Olds stores because they were either bought out (San Diego Area) or awarded additional franchises (Cadillac, Chevy, etc.).

Seems as if they were setting up for yesterday's annoucement. Doesn't address the 'value of the franchise' issue but it makes it less painful. I'm sure there's a fight coming with what 'compensation' should be paid but I'm not sure any will (read the sales and service agrmt.)

Is the phase-out a good thing? Probably the best decision they could make. If inept marketing led to the demise of Olds, then this could be said for all brands. Olds tried to change their image but the (younger) audience wasn't paying attention: Look at Daewoo. What other decision did GM have? Combine Olds with Cadillac (similar to the Pontiac GMC deal)? That would be the best combination but its impossible to implement since there are alot of non-Cadillac Olds duals and GM spends way too much trying to re-align their dealers. Also, there are just too many similar products.

Another interesting observation: For a while now, GM has expressed the desire to have more single-point 'exclusive' Cadillac stores. Looks like they just added a bunch.

Finally, this may signal more focus and the future full inclusion of Saturn into GM.

scott

ps Question: what about Buick? Not much new stuff coming ('cept the little SUV). How many single point Buick dealers are there??

[EFConn]

I totally agree with you comments and I am glad that our family sold our Olds Cad store this past june.(perfect timing) However, I do think that GM has shown equal failure with their entire product line.(35% share in 1995 to 25% share in 2000) Even when they have a better product(Silverado), they cannot market to save themselves with Chevys or Olds'. Bringing in "Cosmetics Marketers" does not help to sell cars as it has been shown. Hopefully Zarrella has learned that.

Also, does this announcement put more Pressure in Ford to Cancel the Mercury Franchise? That could be next to go, before Buick.

[MBailey]

I am not a dealer, but I am an ex-Olds parts and service manager (My dealer sold our Olds franchise this summer). Frankly, I am surprised this did not happen sooner. After the Aurora did not take off like expected, I believe Olds fate was sealed. It's a shame, because from the Fixed Ops side, Olds customers were some of the most loyal around for a domestic marque.

Those MBA's in Detroit could care less, no matter what rhetoric they spew to the press. If you were pulling down seven figures a year no matter how the company performs, what's the incentive? If they would listen to the Dealers more and worry less about corporate politics and their own climb up the ladder, this might not have happened.

Rest In Peace Oldsmobile.