add points

[sallen1]

Have any of you been notified of GM's desire to add dealer representation in your area?

Especially for you exclusive dealers, are there add-points for your franchise going into multi-line stores near you??

Looks like GM is going to solve it's market-share problem the old-fashioned way: More dealers.

comments, please!

scott

[meangreen4019]

Thats funney in my area they seem to be reducing sites.Gm. is not renewing alot of dealer agreements to reduce the amount of sites and adding points to the stores that seem to have a future.

[Michael White]

I think GM wants to participate in ownership in our area, due to so many publicly held companies buying everything up. Ford has been doing this for some time, but are significantly tapering off. The stores Gm owns now are an a major learning curve and are not doing very well. Maybe they are finding it is harder to run a retail store than produce the product. I understand in many states a manufacturer cannot own a franchise.
Mike

[mbowers]

If GM informs you in writing of action it might take in your area, read the letter very carefully. No mater how cordial or benign it might seem, you may be getting official notice of market action by GM. Failure to responfd promptly can result in a loss of the right to protest the move.

[sallen1]

There is a policy (new, I think) where all the dealers in a relavent market will be informed of changes/adds, etc. This would expand on the current official process which goes as follows:

1) A certified letter arrives stating that GM is concidering additional representation OUTSIDE the state mandated radius (but within your current Area of Primary Responsibility (APR)) ( you may be able to file for mediation with GM), or

1a) a certified letter arrives stating that GM is concidering additional rep. INSIDE the state radius (you have a right to protest thru the state here)

2) GM will accept comments on why/ why not to add another dealership (I think these go straight into the circular file)

3) Then, 30 days or so later, another certified letter arrives stating GM has decided to put the dealer in and here's your new market territory.

One thing I have learned recently is that these decisions happen locally (reg. manager makes decision) and VERY quickly. So PAY ATTENTION TO YOUR MAIL!!

What does protesting these actions accomplish? Not much except that you will delay the installation of the dealer. That, in turn, usually tarnishes your relationship with GM and labels you a complainer.

I've been called worse.

scott

[This message has been edited by sallen1 (edited 12-15-1999).]

[mbowers]

Legally and technically that's accurate.

However, the manufacturers with GM gaining some notoriety, have been known to send letters to affected dealers that come across as friendly updates on market actions that are under consideration. The clear implication is that these actions are under study but nothing definitive is happening.

Then WHAM!!. Dealers find out that the action under study is in fact a new point that encroaches on an existing territory.

[Michael White]

What person in there right mind would build a new GM multi line dealership in a already crowded market? GM would have to really step up and participate with huge dollars to make it profitable. At least here in California where the market is foreign car driven, it does not make sense. Also, GM has not demonstrated it has the ability to operate, and grow, and maintain a successful dealership with a good return on its investment on their own. It takes major committment from a owner who has their heart and sole in it, and not a MBA sitting in Detroit with a bright idea.
If GM wants to increase market potential, they need to be able to produce trucks at a much greater quantity, and keep up with Ford and Chyrsler on inovation. Granted we do have some nice product now, but so does everyone else. We are very pleased with the great support we get from our GM team locally. But GM needs to do more than add dealers to increase market share. I am sure everyone reading this will agree.
Mike