GM Programs Changes

[dcharette]

I would love to know how much money GM stands to make off this new deal. 2.75 5 1.5 Wow we are making up for the 0% deal in the fixed operation. Also our dealers are the ones to help pay the shortage for GMAC.

[rneuner]

It seem obvious to me what GM's doing:
1.Raise Dealers List
2.Lower Discounts
3.Lower Return Reserves
4.Restrict who we can purchase from
5.Don't raise ACDelco's price
6.Offer incentitves to WD's to go after installer business

GM is now our biggest competitor. They have positioned themselves to take over our wholesale business. We are in direct competition with the factory!

Write, Call, Complain to whom ever will listen!

[tjsmith]

OH GM HAS WILL BE MAKING A KILLING, BUT NOT ONLY OFF THIS NEW POLICY CHANGE, BUT ALSO OFF THE NEW DELCO WD STRUCTURE, WHICH THAT "THE COUNCIL" DODGED TODAY.
HELL YOU WOULD HAVE THOUGHT THAT IT WAS BILL CLINTON UP THERE ANSWERING QUESTIONS, THE WAY THAT THEY JUST WENT AROUND EVERY QUESTION THAT WAS ASK TODAY.

I GUESS WHAT IT WILL COME DOWN TO IS THAT GM DEALERSHIPS WILL BE A FACILITY WERE ALL WE DO IS WARRANTY WORK!!

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

[rneuner]

It seem obvious to me what GM's doing:
1.Raise Dealers List
2.Lower Discounts
3.Lower Return Reserves
4.Restrict who we can purchase from
5.Don't raise ACDelco's price
6.Offer incentitves to WD's to go after installer business

GM is now our biggest competitor. They have positioned themselves to take over our wholesale business. We are in direct competition with the factory!

Write, Call, Complain to whom ever will listen!

[JoeParts]

need to email:

duane.f.miller@gm.com

[Carl]

What everybody is forgetting about is that it's the General's money and they can do whatever they want with it.They don't care about their dealer body. All they care about, as Ron Zarrella admitted a few years ago, is the shareholders.It's easier for them to make money off the backs of their dealers than to do something unique, like bring out some exciting looking products,allthough that may change with Bob Lutz.

[CadillacJack]

I've heard that the General stands to pocket @130 million from this policy change

[teamparts]

What worried me the most was what they were hinting about for the future. The sprint overhaul is not very far away so all of the dealers selling parts back to GM get ready for a change down to cost plus 10% or something similar. Also they openly said that they want dealers to buy from GM, not WDs, so what can they do to the dealers to penalize them enough so they will quit buting from WDs? I don't know and I don't want to find out.

[Gerry Laughlin]

On the face of it, there isn't a lot we can do about these changes, as a supplier they have a right to piss off their customers (us dealers). What it comes down to is as their customers what rights and options do we have to demonstrate to them the level of our dissatisfaction. We do have some power, believe it or not. One dealer alone cannot make a difference, but with a majority of dealers together there may be a chance of altering these changes and future changes. GM is betting on our disorganization and the willingness of some dealers to go along with whatever GM sends down the pike, regretfully, it is a pretty safe bet.
What options do we have? Well, if I were to stop putting in SPAC cases on backordered customer parts, the District Service Manager would object to the rental bill, and be within in his rights. But what if I and most other dealers were to stop sending out sprint parts, just simply quit saying that I have them? I don't think anything can be said. Also what if I did quit buying from my WD in car down situations (the bulk of which are warranty), in a way, give GM what they are wishing for? If I buy it from my local WD, GM does not pay any pickup charges, if I buy it from the Dealer down the street they reimburse my pickup charges, would an increase in this expense send GM a message? Better yet, what if I was unable to pick it up from another dealer and had to order it in from my local warehouse instead of getting it from my local WD? It seems as though that might cause an increase in the Generals rental expenses. I am sure that there are other ways of expressing our dissatisfaction that would not jeopardize the level of our customers satisfaction, but might still get the point across to GM about how we feel. Until GMSPO understands that:

1: a healthy relationship between a dealer and his chosen WD is in the best interest of the customer and General Motors, the situation will only worsen.

2: Any change that GM makes that negatively affects my profitability will most certainly affect my abilty to give the very best possible service to my customers.

Ten years ago I don't think that the tools existed to organize something like this, but today there are tools around, such as this forum, Lotus notes, etc. that might actually allow for the realization of a concerted response to the changes happening today, and those future changes being considered. Most likely I am dreaming that I might be able to make a difference, but I will be damned if I won't at least try. Is anybody up to a good fight?
Gerry Laughlin

[This message has been edited by Gerry Laughlin (edited 04-13-2002).]

[tjsmith]

Gerry your absolutely right. I had a Service Manager tell me one time when I got upset with things that the manufacture was doing...he said,"Know the system, once you know the system and know how things work, then work the system." You are right Gerry. We must work the system. There are things that we as Parts Managers can do. The SPAC idea sounds pretty darn good. Also be sure that every Declo product comes from a WD. Don't by your chemicals through GM. There are ways that we can fight back, but must do it as a WHOLE or it will not have a huge impact.