Sydwayz

iTrader: (1)

New GM cop cars?

Steve 1

GM ?? you mean Government Motors or The new Amtrac , This was a well-engineered ( illegal) transfer of wealth from bond holders to the Unions. It was also a way to put many family-owned dealerships out of business and set up White Crib cronies with dealerships. GM is a shadow of its former self, and would have been better off going through traditional (and legal) bankruptcy. It would have recovered faster, been more streamlined, and more profitable.

The rest of your post is Insanity !

soldier4402

I agree its insansity but those are just things people conjure up that are rediculous.

As for the dealers Gm cut the ones that didnt perform, family or not if you didnt sell cars I dont see the need for your existence. To be honest with you I dont feel bad for any car dealer, as most even the smallest ones have at least a somewhat better lifestyle then the most in their community.( i Mean name brand new car dealer)

Steve 1

Wrong !! Let the Market Decide Dealership Closures not politics !! DC Racketeering's finest hour .

wrinkleface

Just saw this thead, bought a new leftover 09 Malibu Bu LTz when the 10's were out w/ the v6, OMG, 50K miles later I luv this car, hauls azz, rides good, decent stereo!! I'd get another in a second!!

soldier4402

Im pretty sure market did decide dealer fate. The least performing dealers were cut. Either way having a dealer is like a franchise, the mother company can really cut you at anytime.

But thats what you get when you file bankruptcy the government has its say in what you do and dont do.

Steve 1

It was and remains, nothing less than government enabled financial crime on a vast scale !

Car Dealers: BACK In 2009, everyone knew that the real problems dooming Both Chrysler and General Motors were their enormous property and property tax obligations caused by the too big, too old, factories, and their utterly unsupportable labor and pension costs, Barack Obama ordered the closure of over 3000 auto dealerships. Now, maybe many of those dealers were because they were good Republicans, but what of their mechanics, their salesmen, their janitors, their accountants and finance experts? These were probably a normal cross-section of the country – equal parts Republican, Democrat, and independent. And they all know that they were fired by Barack Obama....

Chart

Still can't understand how cutting dealers helped GM. As the dealers were independant businesses, how is having a low performing dealer worse for GM than no dealer? The dealers had to pay for their costs just as any business does. Keep in mind, the dealers are actually GM's customers, not the end buyer.

VtSteve

For GM, many dealers were reinstated after they filed for arbitration.

Apparently, some 661 dealerships were reinstated of the original 1,100 closed.
No additional information.

http://www.dailyfinance.com/2010/03/...ated-to-close/

soldier4402

you are right a lot people dont get that a dealer actually buys product and resales. There are things like rebates, discounts, and hold cost that fact in all of this.

I think the reason behind closing dealers was for one maybe image and if you didnt sell cars they didnt want you. But the biggest thing is this, dealers are based an allocation on any given type of vehicle is mainly based on how many they sell, and Im sure lot space and other things goes into it. But if you have dealer X thats allocated 25 camaros at any given time and they dont sell them Gm in a sense is not selling product to their customer so in a sense GM is doing what any other store might do, if you dont sell sugar your going to pull it off your shelfs. Also lets say dealer Y across town is allocated 35 camaros but actually can sell 15 more then, really dealer X is holding dealer Y back.