Showing posts with label Dealer Closing. Show all posts
Showing posts with label Dealer Closing. Show all posts
Thursday, September 1, 2011
Another Pittsburgh dealer closes its doors
After 41 years serving the North Hills. Demors Linclon ceased operations as of Tuesday. Demors began business as a Lincoln Mercury dealer in 1970. However due to the loss of the Mercury brand and struggles that still exist in the auto industry caused Demors to be one of many long time dealers in the area to close their doors. McKnight Road is no stranger to automotive dealerships. Currently North Hills Toyota, Baierl Kia, and Mick's Chrysler/Dodge/Jeep all make residence on McKnight. McCrackin Ford also made its home on McKnight before closing in 2007. Their building still sits empty on one of the busiest sections of McKnight, sitting across the street from Ross Park Mall. That area seems to be struggling for new business and a makeover as many storefronts in the Ross Towne Center is also void of many stores after Circuit City, Damon's and Roomful Express have all vacated within recent years.
But back to Demors. What does this now mean for Lincoln and Mercury vehicle owners in the North Hills? Of course any Ford dealer can service the cars with no problems. So that gives owners the option of servicing at Shults Ford in Wexford. Unfortunately, this leaves the sales gap open at a very crucial time for Ford Motor Company as it works with the Lincoln brand in redeveloping its image. Just as General Motors is doing so with Cadillac. Will we see another Lincoln dealer open in the North Hills? I certainly hope so. With the brand image that Ford is moving forward with, with Lincoln being a stand alone brand. I can see an entirely new dealership built to reflect the Lincoln image. But it would have to be north of Ross Township to better compete with other dealers. Both Cadillac and Lincoln are working to take on a more youthful buyer segment and thus the DeVille and Town Car nameplates respectively have been dropped by each brand. Hopes are to bring entirely new flagship vehicles to each brand, but both are difficult vehicles to replace. Just as dealerships are. We are sad to see Demors close, but it unfortunately is one of the necessary evils that we have to face in the auto industry.
Friday, May 15, 2009
NADA responds to GM dealer announcement
The National Automobile Dealers Association won't go quietly into the night. They are continuing to fight for the Chrysler dealers who were cut yesterday, and the announcement earlier regarding General Motors announment with the reduction of some 1100 GM dealers by the end of 2010.
Source: NADA
WASHINGTON (May 15, 2009) -- General Motors’ plans to cut its dealer network are drastic and far-reaching and will impact more than 63,000 dealership employees and thousands of their sales and service customers.
We view GM’s action with a profound sense of sadness and disappointment.
GM’s decision comes through no fault of the dealers, who are, in many cases, family-run businesses that have been loyal partners with GM – through good times and bad – for multiple generations.
NADA fully expects GM to honor all its obligations to the affected dealers, whether or not they decide to wind down their operations. It’s critical for GM to treat each affected dealer fairly and equitably.
NADA will work aggressively on all fronts with regard to assisting these dealers during these historically challenging times.
Source: NADA
WASHINGTON (May 15, 2009) -- General Motors’ plans to cut its dealer network are drastic and far-reaching and will impact more than 63,000 dealership employees and thousands of their sales and service customers.
We view GM’s action with a profound sense of sadness and disappointment.
GM’s decision comes through no fault of the dealers, who are, in many cases, family-run businesses that have been loyal partners with GM – through good times and bad – for multiple generations.
NADA fully expects GM to honor all its obligations to the affected dealers, whether or not they decide to wind down their operations. It’s critical for GM to treat each affected dealer fairly and equitably.
NADA will work aggressively on all fronts with regard to assisting these dealers during these historically challenging times.
GM dealer network update
General Motors is going a different route than Chrysler LLC in regards to their dealer network. Rather than just say adios, you're done. GM is electing to not renew sales and service agreements with 1100 dealers when they come available for renewal in the 4th quarter of 2010.
Dealers targeted were stores that have poor annual sales 35 units or less per year. That makes up 400-500 of the dealers. The rest are not meeting their required sales and service performance, CSI, etc. that are performing below average. These 1100 dealers make up 7% of GMs yearly sales.
There are about 500 dealers who are dedicated to Hummer, Saab & Saturn brands. There will be a further update regarding these brands and those dealers in the next week or so. General Motors North America Vice President Vehicle Sales, Service and Marketing, Mark LaNeve did make it clear that dealers of these three brands "will exist outside of General Motors next year".
It was made clear that without GM filing bankruptcy, that these letters will be hard to enforce. This is why GM is putting the options into the dealers hands to enforce whether to wind down business and close, or find another brand to carry.
GM's intentions are to land somewhere in the neighborhood of 3600-4000 dealerships.
"This is one of the most difficult decissions we have as part of our restructuring" LaNeve said.
Press Release:
In conjunction with conversations General Motors started with its U.S. dealers today, GM issued the following statement -->
GM Statement Regarding Dealer Network Communications
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.”
Dealers targeted were stores that have poor annual sales 35 units or less per year. That makes up 400-500 of the dealers. The rest are not meeting their required sales and service performance, CSI, etc. that are performing below average. These 1100 dealers make up 7% of GMs yearly sales.
There are about 500 dealers who are dedicated to Hummer, Saab & Saturn brands. There will be a further update regarding these brands and those dealers in the next week or so. General Motors North America Vice President Vehicle Sales, Service and Marketing, Mark LaNeve did make it clear that dealers of these three brands "will exist outside of General Motors next year".
It was made clear that without GM filing bankruptcy, that these letters will be hard to enforce. This is why GM is putting the options into the dealers hands to enforce whether to wind down business and close, or find another brand to carry.
GM's intentions are to land somewhere in the neighborhood of 3600-4000 dealerships.
"This is one of the most difficult decissions we have as part of our restructuring" LaNeve said.
Press Release:
In conjunction with conversations General Motors started with its U.S. dealers today, GM issued the following statement -->
GM Statement Regarding Dealer Network Communications
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.”
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