GM Retail Consolidation Is A Go
At the 2008 NAIAS in Detroit this year, I had the opportunity to pick the brains of several GM managers to
discuss future product offerings, brand restructuring, and the like. I learned then that General Motors was seeking to consolidate dealerships and, now, GM is making good on that promise.
One-Stop Luxury Superstores
More than a decade ago, the general began to consolidate Buick, GMC, and Pontiac dealerships under one roof and a plan is in place to do the same with Cadillac, Saab and Hummer. These one-stop luxury superstores will be the the way that the top-tier brands will be retailed in the US, with GM helping dealers buy the other brands that they may not be currently selling in order to have everything under one roof.
One problem with the new arrangement is that there are 1400 Cadillac dealerships across the US, 238 dealers selling Saabs, and just 170 selling Hummers.
No Dealers Being Forced To Close
GM isn’t forcing any dealers out of business, but they are helping with some of the financing which can bring about consolidation. Some analysts question the move to sell three very different brands together as the only thing that they have in common is price. Getting three very different groups of people into one expanded showroom could be a bit of a challenge.
Chevrolet, Saturn Go It Alone
GM will continue to let Saturn and Chevrolet operate as stand alone dealerships as it works to help Buick-GMC-Pontiac and now Cadillac-Saab-Hummer dealerships consolidate.
Further Reading
Automakers pushing to consolidate dealerships
(Source: Motor Trend)



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