Posted by: Mitch/Ralph on: June 15, 2009
As I have posted a few times in the last few weeks, I do not understand the logic behind reducing dealers and saving the car companies. I understand why the manufacturers might want to reduce the number of dealers, but I do not understand the use of cost savings as the justification. I have been [...]
Posted by: Mitch/Ralph on: June 3, 2009
In a prior post, I questioned the savings to be gained by Chrysler and GM from cutting the number of dealers they had. Clearly there would be some small savings in support costs, but most companies would rather be over-distributed than under-distributed, so those savings could not be a real reason. Clearly, also, there were [...]
Posted by: Mitch/Ralph on: May 15, 2009
I’ve been thinking about this for a few days, and I am still stumped. How does cutting the # of dealers help GM or Chrysler? I can’t see it. Sure there are some marginal costs in dealer support that will be reduced, but it isn’t clear to me what else they save. Their VP states [...]
Posted by: Mitch/Ralph on: December 1, 2008
The U.S. auto industry is in melt-down mode, that’s not news. The root cause problem(s) depend on who you ask, but the need to sell cars and trucks … now … is not in dispute. And there lies a problem.
In the early 1990s another recession struck the U.S. economy. Back then it was an accepted [...]
