mkimFAIL
05-18-2009, 01:47 PM
General Motors Corp. on Friday revealed that it is following Chrysler LLC’s lead and has told about 1,100 of its United States dealerships that they will be eliminated, according to an Associated Press report.
Dealers were notified by letter Friday that the Detroit automaker planned to not renew their franchise agreements when they expire Oct. 31, 2010. The company declined to identify the dealers it plans to drop.
The cuts amount to about 17 percent of GM’s 6,200 U.S. dealerships.
Mark LaNeve, North American sales vice president, told Business First of Columbus, an affiliated publication, that the targeted dealers are the poorest performers among GM’s nearly 6,000 dealerships. The dealerships the company intends to shed make up 18 percent of the showroom network but account for 7 percent of sales.
LaNeve said 400 to 500 of the targeted dealers sold fewer than 35 vehicles a year; the rest didn’t meet company’s performance standards, which take sales, profitability and working capital into account.
GM (NYSE: GM) has about 40 dealerships in the Houston area, according to a search on the company’s Web site. They sell vehicles under the brand names Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saturn and Saab.
Chrysler on May 14 announced it was considering eliminating six Houston-area dealerships as part of a bigger decision to eliminate 789 of its 3,200 dealerships nationwide, according to a bankruptcy court filing.
http://www.bizjournals.com/houston/stories/2009/05/11/daily59.html?surround=lfn
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LaNeve said 400 to 500 of the targeted dealers sold fewer than 35 vehicles a year
wow sucks for them
Dealers were notified by letter Friday that the Detroit automaker planned to not renew their franchise agreements when they expire Oct. 31, 2010. The company declined to identify the dealers it plans to drop.
The cuts amount to about 17 percent of GM’s 6,200 U.S. dealerships.
Mark LaNeve, North American sales vice president, told Business First of Columbus, an affiliated publication, that the targeted dealers are the poorest performers among GM’s nearly 6,000 dealerships. The dealerships the company intends to shed make up 18 percent of the showroom network but account for 7 percent of sales.
LaNeve said 400 to 500 of the targeted dealers sold fewer than 35 vehicles a year; the rest didn’t meet company’s performance standards, which take sales, profitability and working capital into account.
GM (NYSE: GM) has about 40 dealerships in the Houston area, according to a search on the company’s Web site. They sell vehicles under the brand names Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saturn and Saab.
Chrysler on May 14 announced it was considering eliminating six Houston-area dealerships as part of a bigger decision to eliminate 789 of its 3,200 dealerships nationwide, according to a bankruptcy court filing.
http://www.bizjournals.com/houston/stories/2009/05/11/daily59.html?surround=lfn
================================================== ===========
LaNeve said 400 to 500 of the targeted dealers sold fewer than 35 vehicles a year
wow sucks for them