New GM Dealer Agreements Take Effect
The previous sales and service agreements General Motors had with the its dealer body expired on Sunday and the new agreements came into effect Monday.
So despite the outspokeness of several lawmakers in opposition, the dealer body of GM will now include about 4,500 stores, a figure the automaker had revealed back in August and was confirmed by a company spokesperson on Tuesday afternoon.
Ryndee Carney, who is the automaker’s manager of dealer and advertising communications, explained to Auto Remarketing that the automaker’s goal in adjusting its dealer network was to align the size of its dealer network with GM’s market share. Back in the 1950s and 1960s, Carney explained, GM’s market share was around 50 percent.
These days, it’s around 20 percent.
Not only that, but GM cut the number of its brands from eight down to four during the reorganization process, and this factor also played into GM’s decision.
“We knew to align our dealer network to be better aligned with those two measures,” Carney shared.
GM had previously announced in August that the new realigned network would take effect Monday.
Granted, there has been a push from certain lawmakers against dealership reductions. In fact, one news report noted that some congressmen from Ohio wrote President Obama requesting a temporary pause on GM and Chrysler dealer closings.