476 replies to this topic

[yodsaker]

Will Detroit's woes reverberate onto north Douglas Street?
If the Hawks win, yes.

[VicDuck]

The Pontiac brand is dead.

[victorian fan]

Pontiac's best feature.

[yodsaker]

Once upon a time Pontiac built excitement. The original 389 GTO was a mover and so was The Judge.
No Judge, just sludge since then.

[VicHockeyFan]

OK, I guess it has hit:

http://www.timescolo...5309/story.html

Victoria Saturn/Saab gets notice. I have yet to read/hear a news story that explains why ending these agreements helps the manufacturers. Are these not all privately-owned franchises? How does that help GM's bottom line, by almost halving the number of places they sell and service their vehicles?

[VicHockeyFan]

OK, I guess it has hit:

http://www.timescolo...5309/story.html

Victoria Saturn/Saab gets notice. I have yet to read/hear a news story that explains why ending these agreements helps the manufacturers. Are these not all privately-owned franchises? How does that help GM's bottom line, by almost halving the number of places they sell and service their vehicles?

Somebody? Anybody? I can't find a single article that says why this makes economic sense, and I've been searching.

[mat]

Somebody? Anybody? I can't find a single article that says why this makes economic sense, and I've been searching.

There will be more notices - also to parts suppliers, contract mechanic shops, truck dealers etc.

It makes no economic sense at all to truly private dealers who made individual company contracts with GM et al. For dealers who sub-financed new model supply through GMAC, yep - they will go fast.

Side note - and maybe better in the VV media section - the local advertising/sponsorship/charity dollar loss will be big. Few realize how much each local dealer puts into the local economy - often dollar matched by head office.

[VicHockeyFan]

There will be more notices - also to parts suppliers, contract mechanic shops, truck dealers etc.

It makes no economic sense at all to truly private dealers who made individual company contracts with GM et al. For dealers who sub-financed new model supply through GMAC, yep - they will go fast.

Side note - and maybe better in the VV media section - the local advertising/sponsorship/charity dollar loss will be big. Few realize how much each local dealer puts into the local economy - often dollar matched by head office.

Ya, that's the only thing I could think up, that not nearly all those cars on the lot are paid for yet, they are on consignment or financed until sold. Reminds me of the movie FARGO.

Another hit for the TC. They still/did get lots of display ads from the dealers.

[LJ]

Somebody? Anybody? I can't find a single article that says why this makes economic sense, and I've been searching.

GM is reducing (drastically) the number of cars it produces, it has to reduce the dealerships in order that the surviving franchises can be financially sound and can offer full service facilities.

There are different arrangements that different dealers have, but basically the franchises get the cars and have to pay monthly interest to GM.

There are also hold back amounts that GM gives the dealer when the car is sold which is why you sometimes see "dealer invoice" sales. They don't make any money off you (necessarily) but they get cash back from GM for selling the unit.

[ZGsta]

Somebody? Anybody? I can't find a single article that says why this makes economic sense, and I've been searching.

This article goes into it.
http://www.slate.com/id/2218761/

[VicHockeyFan]

This article goes into it.
http://www.slate.com/id/2218761/

Excellent, thank you. That does explain it very well.

How's this for a detail:

As a result, more dealerships don't correlate with more sales. Toyota sells more cars than Chrysler with fewer than one-third of the number of franchises. (The average Toyota dealer sold 1,589 vehicles in 2008; the average Chrysler dealer sold 124.)

[Bernard]

I would love to see car dealers not have to be tied to one company, let them sell any new cars that they like, let them operate more like other retail businesses.

If I am looking for a minivan, I would love to have dealer that specializes in that and can offer me many different options to choose from. The current model is bad for consumers and tends to keep weak car models and weak car manufacturers alive.

[VicHockeyFan]

I would love to see car dealers not have to be tied to one company, let them sell any new cars that they like, let them operate more like other retail businesses.

If I am looking for a minivan, I would love to have dealer that specializes in that and can offer me many different options to choose from. The current model is bad for consumers and tends to keep weak car models and weak car manufacturers alive.

Hmmm, not a bad concept at all. No different than, say, an appliance store.

[G-Man]

^ Yeah no kidding that does sound good. And for a more related comparison, many (not all) motorcycle dealers will have multiple brands or Scooter Underground could be used as an example too.

[VicDuck]

We need to import some cars from India and China. This will diversify the market and I have heard that Cars from India are quite cheap.

[G-Man]

I am hoping my next car is an electric BYD

[Holden West]

How about replacing the Douglas St. car lots with a car museum like this?

http://www.theglobea...article1249712/

Imagine this on Douglas Street:



Yeah, I'm dreaming...

[VicDuck]

That's one cool looking building.

[rjag]

I think Ms Madoff may have some issues with that

[http]

I think Ms Madoff may have some issues with that

She wouldn't be alone.

Is this thing as ugly as it looks?