On June 3, the U.S. Senate Committee on Commerce, Science and Transportation held a hearing regarding, in part, GM’s dealer network plans and the impact on consumers, dealerships, and their employees. GM’s CEO and President Fritz Henderson testified on GM’s behalf. Additionally, on June 12, the House Committee Oversight and Investigation held similar hearings. The following are key points regarding the importance of dealers in GM’s Reinvention:
- As the “face of GM,” dealers are critical partners in our efforts to create a New GM that places customers at the center of all we do.
- In order to build a stronger, more viable GM, it is essential to have the best performing dealers, in the right locations, aligned with GM’s brand distribution strategy to be a part of GM’s reinvention.
- It is important to understand that GM utilized a thorough objective analysis process of each market across the United States to determine the right number, locations and identities of those dealerships that will best meet the future sales and service needs of our customers. Findings of the assessment resulted in determining GM dealers who would be retained as a part of the new company as well as GM dealers who did not meet the criteria to be retained in the GM Dealer Network. Dealers to be retained were extended Participation Agreements. Dealers who would not be retained were extended Wind-Down agreements.
- GM has maintained a strong position that dealers are not a problem but an asset for GM.
Now is the time to let your voice be heard. Tell your U.S. Senators and Representatives that although very difficult you understand and support the necessary steps GM has taken to become a leaner, more customer focused and profitable company. The letter below will be sent on your behalf to targeted legislators when you complete the registration form and click “Mobilize!”:
I'm writing to urge you to support the recent steps General Motors has made regarding plans for the dealer network as the company strives to reinvent itself through the use of tools provided through the Bankruptcy Code. My dealership is supportive of the difficult but necessary steps GM must take to build a leaner, more customer-focused and more cost-competitive company for long-term viability. As part of its reorganization efforts, GM has been required to significantly reduce the size of the company, which includes rightsizing its manufacturing operations, retail distribution outlets and supplier network. (Note: This significantly impacts GM employees and retirees.) Reduction of the number of dealerships is a key requirement of this goal.
As GM's CEO Fritz Henderson stated in his opening remarks to the United States Senate on June 3, this is our last chance to get things right --- to fix permanently those parts of the business that have diverted us from consistently building winning cars and trucks and the consumer experience to match. We must act now to ensure that our dealer network matches a smaller, smarter GM built for today's market and competitive realities.
Mr. Henderson outlined the following key points during his opening remarks, and I fully support each of them.
• Dealer consolidations (including reductions) will lead to cost savings. A smaller, healthier dealer network reduces costs, primarily related to support provided for information technology systems, dealer and sales incentives, field sales, service and training, service parts, and advertising. This support costs GM roughly $1,000 per vehicle, and being able to reduce prices will directly lead to more sales.
• Dealer consolidations (including reductions) will focus corporate resources on top performing dealerships and GM's four core brands. This in turn will attract and retain more private capital, the best dealer operators, and, most importantly, new customers from our competitors.
• Dealer agreements are not simply being terminated. GM utilized a thorough objective analysis of each market across the United States to determine the right number, locations and identities of those dealerships that will best meet the future sales and service needs of our customers. Findings of the assessment resulted in determining GM dealers who will be retained as a part of the new company as well as GM dealers who did not meet the criteria to be retained in the GM Dealer Network. Dealers to be retained were extended Participation Agreements. Dealers who will not be retained were extended Wind-Down agreements.
• Once the cutback in existing dealerships is complete, GM will still have the largest, most extensive dealer network in the country---more than any of our competitors, including Toyota, Honda, Ford and Chrysler.
Importantly, we can never lose sight of the fact that customers are at the heart of our business. By maintaining an organized, efficient and totally transparent downsizing in dealerships, customers will be assured that GM and our remaining dealers are open for business and are committed to meeting their service needs now and well into the future.
I am grateful for your support during this critical time. Thank you for your time to hear my concerns.
Your name and address will be added automatically to the signature line so that the targeted legislator can reply to your correspondence.
Send a letter to Congress now to tell them you understand and support the necessary steps GM is taking to become a leaner, more customer focused and profitable company as it reinvents itself. Just review your letter, fill out the privacy-protected registration form below (using your dealership address), and then click the “Mobilize!” button to send this letter to your member of Congress.
Note: Note: You may be taken to a Government or Legislator-controlled landing page to identify the issue about which you are writing. We suggest “economy” or “other”, but any issue you choose will send the letter. It’s a small step to make a big difference.