08-20-2013, 09:32 AM | #1 |
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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? |
08-20-2013, 03:25 PM | #2 | |
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Quote:
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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08-21-2013, 11:07 AM | #3 | |
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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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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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08-22-2013, 05:21 AM | #5 |
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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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08-22-2013, 08:15 AM | #6 |
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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. |
08-22-2013, 08:55 AM | #7 |
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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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