Quote:
Originally Posted by pauldun170
What value is it to GM to maintain franchise arrangements with dealerships that had poor scorecards? What value is it to GM to have two similar franchises within 3 miles of each other? what value is it to GM to have multiple dealers, each with excess inventory and possible low sales, including any financial arrangements with the individual dealers for vehicles and parts inventory?
If you have a market that supports 20 sales a month yet have two dealers with inventory to for 30 sales a month sitting down the block from each other (resulting on cars sitting idle on the lot resulting on pricing pressure as dealers try to offload inventory...resulting in market perception that your cars are worth less than MSRP) what is the benefit to GM?
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I don't know what the value is, but considering GM (the government and unions) originally planned to close over 600 more dealerships based on those factors then reversed the decision apparently GM sees some value.
ETA: As I said it doesn't matter anyway. GM isn't doing what is necessary to be a viable concern so without some major future changes all GM's dealers will be SOL.