GM Programs Changes

[dcharette]

Has anyone heard if GM is changing our programs from what they are today? I keep hearing that we will know the middle of april. ????????

[mbowers]

Look for reductions in the return reserve and dealer discount.

Anyone have more specifics?

[dcharette]

Are they going to still have the options like they have today? Option 0,3,4??? We do know that the field scrap went to $15.00 as of April 15th.

[eric the red]

You folks just need to look at current Ford programs to see where you are headed. The manufacturers seem to all want to be in unison in these kinds of things.

[mbowers]

GM Parts Managers across the U.S. have been told to listen to a special message around midday today (4/12/02)

Confidential, ears only, don't breathe a word to anybody type stuff.

Very mysterious.

Look for an announcement about a reduction in the dealer discount rate from 3.75% to 2.75% and a similar one percent reduction in the return reserve. Effective 5/1/02.

Coupled with the changes in the AC-Delco WD contracts (sell only in own territory; sell more to installers), its looks like Eric is right. Very similar to what Ford did. Bad news for GM parts managers.

[dcharette]

From 3.75 to 2.75 and 5% rr 1.5% in CFI. Gm needs the money to pay for the 0% finance. Where does GM always go to pick up the loss of sales. To there fixed operations cash cow. We as parts managers get the screws.

[tjsmith]

YES, GM IS HAVING A BROADCAST TODAY, 1-2 EST ON CHANNEL 24, ABOUT UP AND COMING POLICY CHANGES, AND I AM HOPING THEY ARE TAKING CALLS TODAY!!!!

[This message has been edited by tjsmith (edited 04-12-2002).]

[scotstrong]

Daimler-Chrysler also recently reduced their return reserve by one percent. Off-the-record comments by D-C reps have been of the "Daimler-Chrysler wants to get out of the parts return business" nature.
All of the domestic manufacturers try to emulate Toyota's parts operations as they are consistently the most successful. Could it possibly have anything to do with the fact that Toyota doesn't keep changing their programs like most of us change underwear?
Dealer Principals need to be made aware that, on this issue, GMSPO has just (again) taken a bite out of their ability to get a satisfactory return on their investment in their GM parts inventory. Maybe when the reps get thrown out of enough dealerships the word will finally trickle up to the so-called brain trust that hatches these shell games called "programs" that they have gone too far.
It will be interesting to see how the litigations over the AC-Delco WD situation play out. In the meantime, every parts manager in the world needs to express their dissatisfaction in this disturbing trend by our "partners" in the parts business. (Gee, it sure is tough to say the word "partner" in the same sentence with "GMSPO".
PARTS MANAGERS STAND UP AND BE HEARD!!!

[mbowers]

Also heard the message will announce an increase in list prices but not dealer net.

Is there anything good for dealership parts managers in the announcements?

Scot --

Have you heard of specific lawsuits over the AC-Delco contract? Please e-mail me.

Thanks,

Mike Bowers

[tjsmith]

THEY MAKE IT SEEM LIKE THEY ARE HELPING US BY INCREASING LIST BUT NOT COST, & THEY MAKE IT SEEM LIKE THEY ARE HELPING US BY NOT RAISING COST, BUT TAKING AWAY A % POINT FROM 3 TO NOW 2%, BUT THE REASON THEY DO NOT INCREASE COST IS BECAUSE IT HURTS THE WARRANTY SIDE OF THINGS. WHICH CAUSES GM TO LOOSE $MONEY$!!

[This message has been edited by tjsmith (edited 04-12-2002).]