GM seeks fewer dealers
 

Jamie LaReau

Automotive News | February 9, 2008 - 10:22 pm EST

GM will continue to push for dealer consolidation this year with a strong emphasis on channeling its luxury brands - Cadillac, Hummer and Saab.

That’s the main message GM will give to dealers in the all-GM make meeting today, CEO Rick Wagoner said at a press event here today.

Wagoner said that over the past two to three years GM has closed about 600 dealerships in the United States. He wants to continue cutting GM’s dealer count but realizes that change has to come slowly.

"It’s a hard thing to make go too fast," Wagoner said. "You get everybody mad at you if you push too hard."

Wagoner said GM has a plan for dealer consolidation.

"It would be irresponsible for us to not have that because we don’t know when a dealer will want to move out, so we need to know here’s the ideal number of (Buick-Pontiac-GMC) stores, and these would be the ideal locations," he said.

The challenge is that no dealers want to leave, Wagoner said.

GM is pushing a strategy of having four retail channels: Chevrolet, Saturn, Buick-Pontiac-GMC and Cadillac-Hummer-Saab.

Wagoner said 80 percent of Buick-Pontiac-GMC sales will come through channeled stores carrying all three brands by year end. GM’s next challenge is doing a similar channeling program with Cadillac, Hummer and Saab, Wagoner said.

Big-volume stand-alone stores likely will remain, depending on the market, he said. But GM will put more effort into three-brand stores for its luxury brands.

ENLARGE

General Motors CEO Rick Wagoner, in the convention keynote speech today, urged dealers to lobby government officials to help the industry develop alternate powertrains and to develop infrastructure needed for them. After the speech, he said GM will keep pushing for dealer consolidation.