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Old 05-23-2009, 08:31 PM   #21
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What I don't understand is how does it help GM to shut down dealers. Aren't the dealers owned privately and stopping them from selling is helping them how???

I can see the additional costs of maintaining a dealer network, but you are right, those dealers need to produce and buy parts, machines and cars from GM. I could see if they were not doing all that well, but as I said earlier, some dealers I heard of from both the Chrysler camps and the GM camps, not all were not doing poorly.

I couldn't imagine traveling 20 or 55 miles to get to a dealer-- one way, meaning a 40 or 110 mile round trip, particularly if the issue is not solved the first time. If you are talking a tow vehicle that gets maybe 19 mpg, the closest dealer (20 miles) would cost you in today's gas prices about $10 round trip.
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Old 05-23-2009, 09:17 PM   #22
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I think there was some inside information given out; our local Chev/GMC dealer bailed out months ago without any reason.
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Old 05-23-2009, 09:43 PM   #23
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I think there was some inside information given out; our local Chev/GMC dealer bailed out months ago without any reason.
It was widely believed by some and possibly known by others that GM had a buy out program last year. Two Chevy dealers nearby closed suddenly and without warning. Before these two closed, I had 4 Chevy dealers in about a 4 mile radius.
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Old 05-24-2009, 04:59 AM   #24
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Does anyone suspect political motivation in closing choices made by GM?
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Old 05-24-2009, 05:25 AM   #25
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Dealer closing list from GMInside news

GM Dealer Closing List (Letter Received):

Classic Pontiac Cadillac GMC Anniston AL
Norman Blackmon Motors Greenville AL
Abercrombie Chevrolet Hartselle AL
Susan Schein Chevrolet Pelham AL
Colonial Chevrolet Buick Talladega AL
Keeton Motor Buick Pontiac GMC Fordyce AR
Guatney Pontiac Buick GMC Little Rock AR
Firebaugh Chevrolet Firebaugh CA
Tri Pontiac Buick Hemet CA
Don Signer Buick-Cadillac Newark CA
Mazzei's GMC Pittsburgh CA
Hatfield Buick GMC Redlands CA
Seaside Buick Ponitac GMC San Diego CA
Daniels Chevyland Colorado Springs CO
Tri-County GM Lajunta CO
Hajek Chevrolet Longmount CO
Wile Motors Columbia CT
Jim Douglas Chevrolet High Springs FL
Coggin Chevrolet Kissimmee FL
Coggin Pontiac Buick GMC Kissimmee FL
Lehman Pontiac Buick GMC Miami FL
Pines Pontiac Buick GMC Pembroke Pines FL
Pat Fischer Chevrolet Titusville FL
Moore Pontiac Buick GMC Canton GA
Chuck Clancy Auto Group Chevrolet Cartersville GA
Frank Andrews Chevrolet Dublin GA
Stokes Hodges Chevrolet Buick Pontiac GMC Thomson GA
Windward Chevrolet Kaneohe HI
Larry Miller Pontiac Buick GMC Caldwell ID
R.L. Reising Sales Beecher IL
Wagoner Buick Pontiac GMC Inc. Belleville IL
Wolf Chevrolet Belvidere IL
Bruckerts Chevrolet Bethalto IL
Rust Chevrolet Cissna Park IL
D'Andrea Buick Pontiac GMC Chicago IL
Roseland Pontiac Chicago IL
Reichert Chevrolet Buick Pontiac Crystal Lake IL
Tom Sparks DeKalb IL
Heaton Chevrolet Pittsfield IL
Zimmerman Bros. Pontiac GMC Buick Pittsfield IL
Ken Nelson Auto Mall (GMC/Cadillac lines terminated) Sterling IL
Reichert Chevrolet Buick Pontiac Woodstock IL
Gene Reeg Motor Sales Columbia City IN
Bob Wysong Chevrolet Pontiac Cormwell IN
Don Ayres Pontiac GMC Fort Wayne IN
Mendenhall-Roy Chevrolet Inc. Grabill IN
Preferred Chevrolet Pontiac LaGrange IN
Meyer GMC Trucks Inc. North Manchester IN
Charlie Roberts Chevrolet Buick Rensselaer IN
Hubler Chevrolet Shelbyville IN
Olesen Chevrolet Avoca IA
Don's Chevrolet Ida Grove IA
Nuebel Chevrolet LeMars IA
Condon Auto Sales Sioux City IA
Hoak Motors Sioux City IA
Krueger Auto & Truck Villa Waverly IA
Crown Automotive Lawrence KS
Warta Buick Salina KS
Merle Snider Motors Chevrolet Buick Pontiac Cadillac Winfield KS
Mountain City Chevrolet Inez KY
Springhurst Chevrolet Louisville KY
Epp's Chevrolet Middleboro KY
Alex Montgomery Chevrolet Mount Washington KY
Ricky Smith GMC Weymouth MA
Fox Pontiac Buick GMC Alpine Township MI
Fox Motors Charlevoix MI
Holiday Chevrolet Farmington Hills MI
Courtesy Chevrolet Ontonagon MI
Victor George Chevrolet Lapeer MI
Walser Buick Pontiac GMC Bloomington MN
Swenson Motor Company (GMC) Benson/Willmar MN
Adams Chevrolet Belton MO
Royal Automotive Fulton MO
Riley Cadillac Jefferson City MO
Pete Paris Chevrolet Monroe City MO
Courtesy Chevrolet Buick Booneville MS
Scarff Auto Center (Pontiac GMC Buick) Kalispell MT
Headwaters Pontiac GMC Buick Livingston MT
Headwaters Pontiac GMC Buick Three Folks MT
Offutt Motors (Chevrolet, Pontiac, Buick) Lisbon ND
Paul Spady Buick Hastings NE
St. Paul Equipment GMC St. Paul NE
Autoserv of Laconia Buick Pontiac GMC Belmont NH
Poulin Auto Country Chevrolet Rochester NH
Quality Motor Co. Las Vegas NM
Miler Chevrolet Lordsburg NM
Scott Nichols Motors Silver City NM
Friday Motors Taos NM
Salisbury Chevrolet Glenville NY
Rose Buick Pontiac GMC Gloversville NY
Patire Chevrolet Buick Hoosick Falls NY
Rea Buick Port Jarvis NY
Matthews Chevrolet Brilliant OH
Dallas Automotive Group Jackson OH
Bigelow Chevrolet Parma OH
Eisenhour Motor Sales Chevrolet Pemberville OH
Moomaw Chevrolet Sugarcreek OH
Brown Pontiac Sylvania Township OH
Bill Cross of Performance Auto Group Woster OH
City Chevrolet Oklahoma City OK
Brackeen Motors Buick Pontiac GMC Shawnee OK
Bob Thomas Chevrolet Cadillac Bend OR
Randy Jones Chevrolet Corvallis OR
Dave Hamilton Chevrolet Redmond OR
JL Freed Pontiac Cadillac Lansdale PA
Videon Chevrolet Newton Square PA
Walker Chevrolet Sandy Lake PA
Williams Auto Group Sayre PA
Hasay Chevrolet Shickshinny PA
Henna Chevrolet Cadillac Aiken SC
Raceway Chevrolet Pontiac Buick GMC Lake City SC
Johnson Motor Company Buick Pontiac GMC Graniteville SC
Nourse Interstate Automall Chevrolet Buick Pontiac Richburg SC
Olsen Implement GMC Huron SD
LaRoche Pontiac Buick GMC Brenham TX
Forrest Chevrolet Cadillac Buick Pontiac GMC Cleburne TX
Don Helms Chevrolet Graham TX
Red McCombs Superior Pontiac GMC San Antonio TX
Carlisle Chevrolet Cadillac Waxahachie TX
Team Chevrolet Smyrna TN
Painter Chevrolet Pontiac Nephi UT
Barber Brothers Chevrolet Spanish Fork UT
Boyd Chevrolet South Hill VA
Brighton Garage Chevrolet Island Pond VT
Wells River Chevrolet Wells River VT
Lewis River Motor Co. Chevrolet Woodland WA
Bob Hall GMC Yakima WA
Glen Dale Chevrolet Glen Dale WV
Midway Motors Harman WV
Joe Romeo's Kingwood WV
American Chevrolet Mannington WV
Apple Valley Chevrolet Martinsburg WV
Bell Chevrolet Sistersville WV
Spencer Auto Group Spencer WV
Johnson Sales Chevrolet Arlington WI
Tom's Chevrolet Cornell WI
Ernie Von Schledorn Chevrolet Pontiac Cadillac Mayville WI
Broadway GM Pittsfield WI


--------------------------------------------------------------------
Stats:
  • Currently 138 dealers on our list.
  • It appears urban and rural dealers were effected.
  • Chevrolet, Cadillac, Pontiac, Buick, GMC, and Saturn stores all had closings on the list.
  • Hummer and Saab stores were not effected thus far.
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Old 05-24-2009, 06:30 AM   #26
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Looks like the little Chevy dealer in our town got the ax. He's on the list of 138. A shame, I heard they were the oldest Chevy dealer in the state of Florida.
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Old 05-24-2009, 06:54 AM   #27
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GM to shut down 2600
2600 X Average number of employees per dealership 53 = 137,800 lost jobs

Chrysler to shut down 890
890 X Average number of employees per dealership 53 = 47,170 lost jobs

Average sales per dealership $33.4 million x 3490 (GM and Chrysler closed dealerships) = $116,556,000,000

http://www.nada.org/NR/rdonlyres/E51...tributions.pdf

Check your State out:
Automotive Retailing: Driving the U.S. Economy

BUY FROM AN AMERICAN BASE COMPANY BEFORE ITS TO LATE PEOPLE


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Old 05-24-2009, 07:41 AM   #28
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Thanks for posting the list. Looks to me that about 35% of the posted GM list were lost in the Midwest alone.
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Old 05-24-2009, 11:26 AM   #29
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We lost three so far- GM, Pontiac and Jeep.
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Old 05-24-2009, 11:51 AM   #30
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I'm just wondering here, but what criteria did they use to fire these dealers? Dollar amounts, unit sales, add-ons, finance dollars? Throw a dart at a map?
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Old 05-24-2009, 12:04 PM   #31
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.Yep, we lost one in every major town and city on the western slope of Colorado. (4) Durgango, Montrose, Delta, Criag, Grand Junction is ok
I think the Delta County dealership that was cancelled was Chrysler, not GM. that leaves the County with Ford/Mercury, Toyota, Buick/Chevy. Considering there are only 30,000 people in the county, that's a lot of dealers.

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Old 05-24-2009, 04:51 PM   #32
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What I see as happening: Dealerships only make 8-10% of their income directly from the sale of new vehicles...Most comes from service, parts and body work...Any dealship should continue to provide these services since ALL cars at some time will need at least minimal service...
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Old 05-24-2009, 04:57 PM   #33
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If parts and qualified mechanics start moving away, we are all screwed.
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Old 05-24-2009, 06:37 PM   #34
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I don't know that a former dealer will stock parts for brands that they no longer carry, if they are still open. They can't all become Kia dealers and stay in business.

Being a dealer for a brand brings warranty and post warranty business. The company—GM or Chrysler—is the dealer's best customer because of warranty work. That will no longer be available. Some people whose warranties have expired will continue to go to former dealers out of habit or loyalty. Some dealers, probably small town and rural ones, will survive on other brands, some will go to used cars, service and body work, and some will close down.

The large number of employees being laid off will in some case migrate to other dealers, mechanics should always find work, sales people will mostly stay in sales of some sort, office workers will suffer most I expect. Car salesman change jobs all the time. Mechanics move around a lot too.


Remaining dealers should be stronger, sales tax revenues will still flow, but perhaps to different places, or in places like where I live people will buy other brands and the same revenues will be there for the dealer (he'll sell a Toyota or a Ford instead of a Dodge). Less competition may boost prices.

There'll be a lot of dislocations, but it may not be as bad as it sounds at first.

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Old 05-24-2009, 07:40 PM   #35
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I may have not thought this thru but, here goes ---

I have read that chrysler dealers only averaged selling one car per day. I am sure that GM dealers sold more but, the US market has dropped from 17million to 10.5million. That is a 38% reduction in the overall market. I have no idea what the average sales is for a GM dealer but, it has to be off significantly.

Does anyone think the US market is coming back like before? I highly doubt it. If it recovers to 13-14million within 5 years, I will be surprised. Even then, the foreigners including China are going to fight for a share of the market.

Then again, the dealer closures should be somewhat related to the factory closings. I am sure that GM knows where the breakeven volume is on each model and factory.

Also, the new "cafe" number is bad news for poor people who can bearly afford a car now. I read somewhere that a F150 pickup or GM1500 pickup will cost approximately $30,000 when they get it to 29-30mpg.

I tried to play around with constructing a "cafe number" using just Honda & Toyota products. Does anyone have any idea how hard it is to get to 35.5mpg fleet cafe number? They will have to sell a lot of expensive hybrids & electrics and small cars.
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Old 05-24-2009, 07:45 PM   #36
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Daniels Chevrolet was given their letter here in Colorado Springs this week.
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Old 06-14-2009, 07:10 AM   #37
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