GM to force 1000 dealerships to close!

[DGthe3]

Originally Posted by OUR72GTO

It is not meant to "save ' them money.....

It is intended to lower the competition between them for less buyers thus increasing the profitability. As we will be paying more because the dealer "down the road " is gone.

I'm not so sure. It will clearly make the allocation and the logistics simpler for GM. The transport that currently has 10 cars, divided between 2 dealers might only have to go to one. Fewer dealers combined with the reduction in name-plates will allow for more trims to sit side by side on lots. So instead of having one LS and one 2SS on one lot, then a 2LT and a 1SS at another, all 4 could be in the same place.

You might have a point with the individual dealers, but I don't think GM see any of that money. They sell a car to the dealer who sells it to you. The dealer doesn't hold the car and then send GM a cheque for 75% of your transaction total. All that aside, it might make some dealers more willing to accept a deal from you. If they move a higher volume there is less (less, not no, less) pressure on them to suck every last penny from you -its better to make $3000 twice than $4000 once. After all, there are sill Ford, Dodge, and Toyota dealerships just down the road too.

[FxsX24]

we just had a chevy dealer buy out the neighboring pontiac buick gmc caddy dealership the other day, so one can be taken off the list

[franknbeans]

I have read that GM will not shut their doors when notified. What happens is GM is not renewing their franchise license. The license will be good until October of 2011. But it is up to each dealer what they would like to do until then.

[Husker]

Let's hope they close the greedy price gouging dealers.