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Old 08-20-2013, 09:32 AM   #1
XDCX
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Default Chevrolet Dealer goes to court to stop General Motors Termination

News reports indicate a Chevrolet Dealer in New Jersey will fight General Motor's efforts to terminate his franchise. For the full report - click here

General Motors notified the Dealer earlier this month that the company intended to terminate his franchise because of poor sales performance. GM documents indicated the dealership's "Retail Sales Index" was 58.5 for the Buick franchise and 42.2 for the Chevrolet franchise. A RSI of 100 is considered average.

I wonder if GM has been pushing for other dealer terminations due to poor RSI or dealers who fail to conform to GM's facility demands?
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Old 08-20-2013, 03:25 PM   #2
Lakeshow
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I wonder if GM has been pushing for other dealer terminations due to poor RSI or dealers who fail to conform to GM's facility demands?
A lot of the smaller(less than 200 new/year) GM dealers I know were given five year "make it or break it" franchise agreements after BK. Since that time many have struggled to get inventory, let alone the inventory they need for the area. Allocations of 30 cars per 10 pickup/suv's don't cut it for a western rural dealer, especially when only 2 of the 10 are HD's. Now that we are on the third year of these agreements, sales goals are getting higher every month; as well as the pressure to meet facility demands. More than half of the guys I've talked to say the facility requirements just don't pencil out for them.

Does GM still want these small rural dealers gone...I've said it for years and I'll say it again: absolutely without a doubt they want them gone. In the next few years you will see more and more go by the wayside. Whether they do it through their facility program or jacked numbers like BK doesn't matter their goal is the same. Just my cheery opinion for the day.
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Old 08-21-2013, 11:07 AM   #3
XDCX
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Does GM still want these small rural dealers gone...I've said it for years and I'll say it again: absolutely without a doubt they want them gone. In the next few years you will see more and more go by the wayside. Whether they do it through their facility program or jacked numbers like BK doesn't matter their goal is the same. Just my cheery opinion for the day.
Sadly, I'm inclined to agree with your prediction.

The OEMs have so many tools at their disposal if they want to make it hard on their rural dealers. (Allocations, facility demands, two-tier pricing, special tool requirements, training programs, etc.)

Maybe the current mindset will pass, but I do get the impression that many of the OEMs have a "less is more" mentality when it comes to the number of dealerships they have in their network and the number of Dealer Principals they have on paragraph.
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Old 08-21-2013, 12:16 PM   #4
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As a former holder of a rural GM franchise that was terminated, I have to agree. In the same market as I kept my CDJR franchise I lost my GM. I was doing more GM numbers than Chrysler. I was the only new dealer in the town of 4-5 thousand
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Old 08-22-2013, 05:21 AM   #5
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As a former holder of a rural GM franchise that was terminated, I have to agree. In the same market as I kept my CDJR franchise I lost my GM. I was doing more GM numbers than Chrysler. I was the only new dealer in the town of 4-5 thousand
Hmmmmm, sounds a lot like our story. GM couldn't give a crap about us small guys, and they don't even try and act like it anymore.
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Old 08-22-2013, 08:15 AM   #6
tnpartsguy
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Default SLP/SAME DAY Service

It is my firm belief that SLP was created to help weed out small dealers.
Make them overbuy, tie up too much money in parts, OR have a 11% surcharge if you don't play their game.
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Old 08-22-2013, 08:55 AM   #7
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It is my firm belief that SLP was created to help weed out small dealers.
Make them overbuy, tie up too much money in parts, OR have a 11% surcharge if you don't play their game.
I agree 100%, as well as the facility programs, tiered incentives. Add in poor allocation and cards are stacked against the small guy.
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