The three biggest Detroit-based auto manufacturers — Chrysler, Ford and GM — are continuing to decrease the number of dealerships and franchises across the country, mainly the result of consolidation plans. The Detroit 3’s stores account for two-thirds of all new vehicle dealerships even though their sales account for only half of new vehicle sales in the U.S. Since 2003, the attrition of Detroit 3 dealers has accelerated.
According to an Automotive News census, the big three had 621 more dealers on January 1, 2008 than the start of the year in 2007. Back in 2003, the three subtracted 256 dealers, and the moves are in an attempt to increase profits at remaining stores.
GM spokesperson Susan Garontakos explains at least part of GM’s 248 dealership and 227 franchise closures were due to dealership consolidations that will see Buicks, Pontiacs and GMCs sold under one roof and luxury brands Cadillac, Saab and Hummer under another. GM wants to sell 80 percent of new Buick, Pontiac and GMC cars from such dealerships by the end of 2008, an increase of 7 percent.
Ford’s reduction of 214 dealerships represents a 5.3 percent decrease as of the beginning of 2008 on account of its reduced market share according to the automaker.
Chrysler’s subtraction of 164 dealerships or 4.6 percent is a reflection of Project Genesis, a move to consolidate Chrysler, Dodge and Jeep franchises.
In the industry as a whole, 239 less new-vehicle dealerships existed on January 1, 2008, than the same date last year, representing a 1.1 percent drop.
04/07, 11:31 AM
posted by:
400horseSS
There are 5 Chevy dealers in a 10 mile area where i live, they used to say Chevy dealers are like Mc Donalds……they’re everywhere.
04/07, 11:32 AM
posted by:
400horseSS
http://info.detnews.com/redesign/forums/autostalk/lettersindex.cfm?forum=autostalk&topic=s10%2C%20parma%2C%20oh%20—–%20toyota%20buy%20back
04/07, 11:41 AM
posted by:
injunraiv
“According to an Automotive News census, the big three had 621 more dealers on January 1, 2008 than the start of the year in 2007″
Looks like a net gain to me. WTF?
04/07, 12:16 PM
posted by:
jackjimturkey
They’re cutting their own throats
04/07, 12:18 PM
posted by:
Htay9500
is that pic of the chry/jeep dealer in Rockville, MD? Cause theres also a ford dealer which closed across the street from there.
04/07, 1:33 PM
posted by:
johnnycanuck
Good news for the import franchises. There will soon be plenty of good stores to snap up without all those nasty construction costs to worry about.
04/07, 1:59 PM
posted by:
tripleonefive
“Chevy dealers are like Mc Donalds” No because people actual buy McDomalds products
The Chrysler dealer in the town where I previously lived is turning into a Toyota dealership. It was Chrysler for about 30 years A couple of years back the Ford dealership turned into a Lexus dealership and the Dodge turned into an Infiniti dealership
Lol if you dont believe that the Japanese have a better product you need to get with it
04/07, 3:10 PM
posted by:
400horseSS
“McDomalds” nice try asshole
04/07, 3:24 PM
posted by:
LaCaLover
Maybe they would be slimmer if they bought more Chevrolets instead
04/07, 4:38 PM
posted by:
tripleonefive
Spelling error or not it was funny and true. Nice attempt at a comeback though
04/07, 9:48 PM
posted by:
jdasch1
You don’t have to operate more stores to sell more cars. Dealers are expanding their store sizes to fit the business that is caused by store closings. The expansions are in the service and parts side…not sales. I know of a market where 1 dealer was bought out by Ford, and the other two dealers pitched in some money as well. The result was both dealers putting on a swing shift in service and parts to accomidate the customer shift to them. The sales operations don’t have to expand because the lots are oversized from years past sales. Making dealers profitable only makes them do more for the customer. A dealer losing money says “no way” faster than one that has money to spend.