I drove past the Buick - Pontiac dealer in town. I've bought four cars from
them in the past.. He has three new Pontiacs and 0 new Buicks to sell.
Given that selection, his sales are probably going to be weak. Sure you can
get cars as needed, but having something to show and test drive is good. Of
the three GM dealers in town, my guess he is the one losing the franchise.
That's is pretty much that all the cars companies think. If you can not
average 500 cars a month, you can't make a profit, what good is your
Of course nobody would expect you to know that, you know nothing about the
car business LOL
I don't know much about the car business, but I do know that many dealers
have been able to turn a profit and stay in business for decades selling far
fewer cars. I'd guess that of the five dealers in our town, two may sell
five hundred cars a year, but the others come nowhere near that. Our
Caddy/GMC dealer has been around since 1936 selling cars and supporting a
bunch of employees. The Chevy dealer has been here for 30 years with the
present ownership and decades before that too.
Where I live the three GM and two, of the three Chrysler family owed
dealerships, went out of business over the past two years. There are only
tow left, the F-LM dealership and the Jeep/Honda dealer who took on
Chrysler/Dodge. The only one that is growing however is the F-LM
You are correct family dealers, with one of two brands, that have been in
business for many years can STAY in business selling fewer cars. However
the reason is they own the store and probably their used inventory as well.
That is not the case with the multi-franchised stores today, that were build
over the past ten years or so, that have a huge mortgage, new and used car
floor plans and 100 or more employees.
The company where I was Group Sales Manager had 26 multi-franchised
dealerships in six eastern states that sold just about every brand you can
name. The largest had 14 stores in its complex. If those individual
high volume brand dealerships did not do a least 250 cars a week and move
1/3 of the used inventory they were loosing money.
Doubtful GM will stop until someone has the balls to put them out of their
misery. Latest has a dimwitt congressional or senate bill is to get the cut
dealers back onto the GM dealer list, at taxpayers expense of course.
More taxpayer blood letting.
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