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Old 11-04-2009, 10:54 AM   #351
Cmicasa the Great XvX
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Drives: 07Taho, 11CamaroRS, 12CTSV Coupe
Join Date: Oct 2009
Location: MD
Posts: 705
How the DEALERSHIP Issue Should've Been Dealt With

Dealers, IMO should have appealed to both GM/Chrysler and the Taskforce for their own viability in a way that would have had the company and Gov both re-thinking the need for their shuttering.

The BK essentially alleviates the Companies from having to keep them.. but it should have been made apparent that these dealers could exist without being a DRAW on the companies


If they were great performing dealerships...they should be POed... all of them should. But they could have stopped it in much the same way that the 30 or so dealers that GM has rescinded have pulled someting outta a hat.

And mind U that this train of thought was PRE-TASKFORCE. Jerry York constanty raved about it during Kerkorian's time of ownership in 10% of GM.

My solution would be that all remaining dealerships can stay in business but must handle all of their own advertising, all dealership revisions and maintenance... and any other costs associated with being a dealer. I would even go so far as to say that I would implement a TIER level program where:

1)TIER 3:

A New Dealer with no proven sales would have to take the hard route. Apply for SBA loans etc to get started, or even corporate financing to have a store built but with adequate collateral to cover any possible failure. This tier would handle all of it's own advertising.

2) Tier 2:

A dealer that has reached a certain preset sales number. That dealer would get rewarded with some Corporate participation including advertising and renovation costs help, but with a NON-COMPETE and CORPORATE ownership of at least 10-15% of the dealership, with 50% of the corresponding (of the 15% ownership)profits coming back to the corporation and the other half going into an account to cover corporate share of advertising and renovation costs.


All dealerships would be subject to inspection in an effort to have dealers that have stores that look the part and function in a way that expressly favors an excellent customer experience. The INSPECTOR would be employed by the Corporation, but INSPECTIONS would be paid for by the dealer.
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