Wednesday, May 20, 2009

General Motors moves to shed 1,100 dealers


That was the title of a recent article in the Los Angeles Times by Ken Bensinger, Andrea Chang and Tiffany Hsu. My immediate reaction is that it appears that the factories did not do a good job of communicating with the dealerships. What dealership network did they want--small towns or potential high volume? What did they really expect the dealerships to do in unit sales? Many small town dealerships were individually profitable with service and they put $ into the local economy. What does it cost the companies to maintain any dealership? Many questions and not a lot of answers. MY next reaction is OLD BOYS management and it should have been done a lot of years ago. We are noncompetitive with our competitors and should have known this for years.

What stupidity!

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