GM Will Push Metro Mega-Stores

Washington DC January 22, 2008; The AIADA newsletter reported that according to Automotive News, General Motors is preparing to make public a plan to encourage the creation of superstores in major metro areas that would carry every GM brand.

GM is trying to whittle down the number of dealerships in certain regions, said Mark LaNeve, GM's vice president of vehicle sales, service, and marketing. The big stores would allow GM to maintain a high profile in cities where real estate is costly.

To create enough showroom space for extra franchises, dealers would be encouraged to move service and parts operations to satellite centers. Dealers contacted last week had a mixed reaction.

One dealer who asked not to be identified predicted that off-site service centers would alienate customers. The dealer also predicted that superstores would allow big dealership groups to dominate metro markets, hurting family-owned dealerships.