How does this help

[JustBob]

Using extensive accounting analysis, spread sheets, and expert opinions along with consulting with appointed government officals that have now paid their taxes I have come upon the ultimate solution:

Drop all Chrysler franchised stores and outsource the sales, delivery, and warranty of Chrysler vehicles to Sam's Club, Pep Boys, and others (maybe even community action groups). Or better yet just have the manufacturer drop ship the cars to the buyer's house. They do such a great job of running the design and manufacturing end I am sure they can do this well. Could also use the empty Circuit City stores as distribution points, they have already been thru bankruptcy! Perhaps some of the former management of Circuit City could provide expert opinion along with Fannie Mae, Freddie Mac, and all the other failed leaders. They do not need paid they can live on their bonuses. Bernie Madoff available for consulting - now that guy is a salesman!!!! Imagine - he can sell you a car that does not exist, take your money, and have you telling you friends what a great deal you got. (Had some pretty big birddog fees however)

I will now take my tongue out of my cheek. Enjoy the weekend. The first two weeks of June will be "interesting" for all of us that are highly vested and invested in the New Car Business. And it is just the end of the beginning.


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Have a tremendous day
Bob Britting

[Mike]

In an article from Automotive News Fritz Henderson is quoted as telling Congress that GM will save billions by closing these dealers. He said;
"The end result will be between 3,800 and 3,500 U.S. GM dealers by the end of 2010, depending on attrition levels, with a retail market share of 17.3 percent in a retail sales market of just over 10 million," Henderson said.

GM pays about $1,000 a vehicle for dealer and salesperson incentives, advertising, field sales, service and training, and information technology support" he said.

My quick view is as follows
1. You don't pay incentives unless you sell something.
2. The dealers pay for the majority of advertising, the rest GM will have to continue anyway to support the remaining dealers.
3. Field Sales, Service and Training will not cease or slow down. The remaining dealers will still need all of the same things.
4. Information technology? Why then am I paying ADP and TRACS 2000 and 1-800-USEUS and on and on and on?

Mr Henderson, is this actually a case of blowing smoke to CYA?

[This message has been edited by Mike (edited 06-04-2009).]

[texaslp]

4. You're not only paying ADP etc, but you're paying GM for Dealerworld, Training, CSI access, CUV, MOE and more!.

My take on this is that fewer dealers contributing to the cost of these programs, will result in HIGHER costs per dealer.

[This message has been edited by texaslp (edited 06-04-2009).]

[tjsmith]

What Henderson should have said when he was asked why they closed so many dealers, he should have said , "Well that the Government Task Forced that is assigned to this ordeal told us our first plan of action was not aggressive enough.....so this is what the Task Forced, who was appointed by Pres Obama, agreed to."

Funny how Cogress is soooo interested in this whole ordeal now....where were they 2-3 months ago...too little too late