GM To Give 1,100 Dealers The Axe Today

Why is it that I thought it would be more like 2500 instead of 1100.

Because you are looking long term, as the management should be. They are doing only what needs to be done right now, instead of looking for what needs to be done for the long haul.

So they should have cut more? seriously, having 3 times as many dealers as even Toyota is a bad thing.

Joe, GM may have tons of dealers but that doesn't mean anything to them. Most of those contracts are over 50 years old. And what good does it do GM to have dealers if they aren't moving inventory? GM has to push incentives to dealers to take product, the dealer needs more incentives to sell product to customers. Toyota sells WAY more cars per dealership than GM and the dealerships are more profitable. Toyota spends less money on dealer incentives and has a smoother distribution network due to having less final destinations.

In the end it isn't the number of outlets that matter, it is the product you build and how the consumers react to it.

I wasn't attacking you, I was finishing your idea and requesting clarification. Hell I even boosted your comment before writing.

Joe, I didn't deboost you (I only do that to the idiots like the two davids that fight with each other). I simply restated my thesis in a more appropriate and complete manner.

That is a lot of dealerships but still not enough. With the amount of sales they do have, most of them are probably ghost towns anyway.

No no no , at the end they are cleaning all GM Dealers in America and then send production to China later they have to import american cars to USA,this is not fear , GM is eliminating jobs from american people for the simple reason to cheaper workers in China. Where is the last intention to improve and develop the American car industry. This is important for USA and for us to have a quality auto industry. I want America be the one in everythig. We need to work for that.
I don't like the way World is moving today and tomorrow could be worse.......if we don't stop that.

I always though dealerships were a 'no cost' element of an automobile manufacturer's business model. CAn one of you learned folks explain to me how cutting dealerships saves money?

I don't see it. Transportation is paid by the eventual buyer (destination fee). Floor planning interest is paid to the Floor Planner (not always the manufacturer BTW) by the dealer.

Incentives - if the dealer doesn't move cars, he doesn't get the incentives.

I still don't get it.

Incentives in the case of GM isn't a good thing, they may help clear out inventory, but they aren't going to make any money if they sell the vehicles for less then the cost to make them.

Once they start importing all those crap chinese cars their gonna be closin' a whole lot more than 1100 dealerships! Just watch!..they'll have incentives comin' out their whazoo tryin' to push those babies!!

Goodbye GM...thanks for stealing our hard earned money...Karma is a B***H ain't it?

How could anyone not see this coming? Every small little hick-town has a GM store, or 2. (lol) OFF WITH THEIR HEADS !!!!
This should have been done a decade ago. This loss is not it. Expect more stores to close after a complete GM analysis has been done next year. GM with be limited to the same amount of Hyundai stores. Now that makes sense.