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on board. Further, techs will not be any easier for them to get and keep. And what about the UAW? I would bet the ranch that once there is a pool of GM-employed techs, they would become unionized and later the sales forces would follow. Finally, the bean counters who have never had to meet a payroll or had any real responsibility other than to count other people's money would recommend sales to an outside individual to stop the flow of red ink. Do you really think these Harvard and Wharton grads could function in the retail environment where every decision could cost the company thousands of dollars? I know too many of these guys personally. This is not an option. GM might be able to find a few good people, but not enough to make all these stores work. Just think, GM would be able to see, with all the expenses they have loaded on the dealer, that there is not enough mark-up in these cars to make a profit selling mostly new units. And lawsuitswould any jury hold back on company stores? As I see this, it is not all bad. Let GM jump in head first. This would help them see the other side of life, not just the financial statement at the end of the year. KEEP UP THE FINE COLUMNS, THEY KEEP ME INSPIRED! THANKS
Dealer name withheld upon request
Dear Mr. Roscoe:
I would appreciate it if you would pass this along to Jim Ziegler. I read
his column today and was reminded of something that happened in our market
a number of years ago. Although I am a little fuzzy on some of the details,
it reflects poorly on the GM dealers' partner (sic), the factory.
In the late 1970's GM installed a Chevy dealer in a new point in my state. The fact is, it was very close to another Chevy store (the new dealer, it is rumored, worked for GM at some point. I do not know if that is true). It was apparent that the new dealer was the factory's fair-haired boy. Soon, the older dealer was having a difficult time obtaining hot product. While they had no hot product, the new dealer had plenty. Needless-to-say, the dealer at the older point was forced
out of business within a few years. Take nothing from the newer dealer, he is a shrewd businessman. In the mid-80's he acquired a failing Cadillac-Pontiac-GMC dealership near him. Just this year, the local Buick dealer sold to GM under the guise of closing the point. Guess who ended up with it? Yep, the factory's fair-haired boy. The Chevy dealer who was forced out of business filed a lawsuit against GM and I have to applaud him. In the mid-90's, he received a verdict against GM for, I believe, 45 million dollars. He proved GM gave hot models to the other dealer and ultimately put him out of business. It takes a tenacious dealer to beat the factory. The moral is, that unless you are a factory favorite, you can very easily lose. Considering this, would any dealer be foolish enough to think the factory would not use their wealth of information to destroy a competitive dealer? If you have a full-grown grizzly bear outside your door, would you open it a crack to see what he looks like?
Dealer north of Mason-Dixon line, name withheld upon request
Dear Mike,
Please accept my check for $100 to continue receiving your fine magazine monthly.
Yes, I know subscriptions are free, but I pay a hell of a lot more for other
publications that I do not find as fulfilling as yours.
Dear Jim,
DEALER magazine is a very important tool for each and every dealer this
side of the factory. I look forward to my copy every month and generally turn
to your comments first before reading the rest of the articles. Thanks! I
feel I must comment on the alarm bells going off on GM's dealer buyout program
because we have not looked at the long-term effect these stores may have on
the last guys standing as independent franchised dealers. Remember, these
are going to be company stores. Yes, they will get favorable treatment from
the factory on all sides of sales and service, but they will not be OWNERS.
Being the OWNER/OPERATOR makes all the difference in the world. Look at auctionswhen
the general manager is buying, the sky's the limitbut when the dealer is bidding,
watch him back off at a certain price. Examine the hours owner/operators put
in at their stores. Do you really believe a GM manager is going to put the
66-hour work week in without heavy compensation? I personally was involved
in dealer council and both amg and dmg advertising boards. In many discussions
"off the record," GM persons were worried about their retirement
pack and benefit packages and how much time until they retire. GM EMPLOYEES
will not have their heart and soul in it like most dealers. In order to get
the high productivity out of their managers, GM will have to pay a king's
ransom to keep these folks
I'm sure you hear all the time how great your magazine is, but my compliments are 100% sincere! Thanks again for your voice of sanity in an insane business.
Bill McCroskey
McCroskey, Inc.
Chev-Buick-Pontiac-Olds-Cadillac
Chariton, IA
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