GM Statement Regarding Dealer Network Communications
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Detroit May 15, 2009; As noted in our recent S-4 filing and updated Viability Plan, General Motors plans to reduce its dealer network from 5,969 stores today to approximately 3,600 by the end of 2010.
This process starts today, as GM begins contacting dealers regarding its long term planning. Approximately 1,100 underperforming and very small sales volume U.S. dealers will be advised that GM does not see them as part of its dealer network on a long-term basis. In most cases, existing franchise agreements run through October of 2010.
In addition, we will be updating about 470 Saturn, HUMMER and Saab dealers on the status of those brands and we will be discussing how the remaining dealers will support our retail plans going forward. While additional cuts will be made, we believe the vast majority, over 90 percent, of the remaining dealers will be offered a chance to remain with GM. However, specific dealer issues, further attrition and additional possible dealer network actions are expected to bring the number of future GM dealers to around 3,600 by the end of 2010, as described in the Plan. The actual number could vary given levels of attrition, etc. outside of GM’s control.
“We have said from the beginning that our dealers are not a problem but an asset for General Motors,” said Mark LaNeve, GM Vice President of Sales Service and Marketing. “However it is imperative that a healthy, viable GM have a healthy, viable dealer body that can not only survive but prosper during cyclical downturns. It is obvious that almost all parts of GM, including the dealer body, must get smaller and more efficient.”
“In response, we are letting them know about our long term plans. GM’s viability plan calls for fewer, stronger brands as well as fewer, stronger dealers. We have taken a very difficult step by identifying those dealerships we’d like to keep in the GM dealer network and those with whom we will have to wind down our business relationships,” LaNeve said.
As independently owned businesses, dealer owners will make their own decisions if and when they want to make this information public. GM is not releasing the names of any dealers.
“We are not terminating any dealerships today,” LaNeve clarified, “We will be talking to all of our dealers over the next few weeks, letting them know now in the spirit of open communication, so they are advised well in advance, about our long-term plans and their role in them. Long term, GM should have fewer, healthier dealers, maintaining GM’s current high customer satisfaction ratings, with more sales per outlet.”
MEDIA ADVISORY: General Motors North America Vice President Vehicle Sales, Service and Marketing, Mark LaNeve to discuss U.S. Dealer Consolidation Plans
Detroit, Mich. May 15, 2009; General Motors North America Vice President Vehicle Sales, Service and Marketing, Mark LaNeve will host a media conference call on Friday, May 15, regarding GM’s U.S. dealer consolidation activities.
The call will begin at approximately at 12 noon EDT. We recommend you dial in 10 minutes before the start time.
LaNeve will make a few brief comments and then take questions from the media. The call will last approximately 30 minutes.
The call-in numbers are:
United States: 800 830 2812 International: +1 416 641 6283 No access code is required; just ask for the General Motors media conference.
A replay of this call is scheduled to begin on May 15, at approximately 1:30 p.m. ET and end on May 19 at approximately 1:30 p.m. ET. To access the replay, please dial (800) 633-8284 – or – [International] (402) 977-9140. Enter access code 21425138 to review the recording.