The Truth of the Matter

Buy acai natural energy boost without prescription, By Bob Dilmore
Chairman/CEO of Management Performance Groups, Inc.
www.mpg20.com

We have been watching with interest the day-to-day developments in both the Chrysler and GM Chapter 11 Bankruptcies. Cheap acai natural energy boost pharmacy, We serve many prominent dealers throughout the USA and Canada and our phones have been busy with comments and questions from dealers who frankly are in a state of shock. Because of our position in the industry, i.e, acai natural energy boost for sale. provider of 20 groups, Buy cheapest acai natural energy boost, educational webinars, HR consulting & testing, and litigation support, cost of acai natural energy boost, we have the benefit of knowing exactly what dealers are feeling and how they are reacting.

Mark LaNeve’s letter to all GM dealers today (June 18th) is a classic example of GM’s arrogance and their lack of empathy or understanding of how their dealers really feel. They view the return of “participation agreements” as support for their restructuring efforts, when the facts of the matter are that dealers signed and sent these letters giving up their rights out of pure fear and in an effort to survive, buy acai natural energy boost without prescription. Acai natural energy boost in bangkok, Even those dealers who GM is terminating were coerced into signing, because if they didn’t they lost everything very suddenly, much like the experience of 789 Chrysler dealers, tablet acai natural energy boost.

I worked for General Motors for 17 years when GM was a truly great company – one of the largest corporations in the world – held in high regard by everyone. Buy acai natural energy boost internet, Having served in an executive position in the central office of Buick Motor Division, I came to know the real leaders – the movers and shakers – at General Motors; as well as at Buick. These were intelligent people, fda approved acai natural energy boost, moral people; whose leadership was very apparent. Buy acai natural energy boost without prescription, They recognized their dealer body as GM’s greatest asset. Buying generic acai natural energy boost, Harlowe Curtice, Chairman and CEO of GM, initiated the Quality Dealer Program, cheap acai natural energy boost pill. We all lived by the standards established. Buy acai natural energy boost lowest price, We respected dealers as business partners.

To see the depths to which this once great company has fallen is frankly heart-breaking. The actions of the current management at both GM and Chrysler are not only unjust and immoral; they will prove to be self-destructive!

Under the guise of the necessities of their “restructuring plans”, GM and Chrysler have attempted to convince all the President’s men that getting rid of 25-40% of their dealer body will save them into prosperity, acai natural energy boost alternative. The REAL reason for these terminations, under the umbrella of a chapter 11 bankruptcy, is to eliminate dealers who have stood up to them, refusing to be “team players” on a team that was very obviously losing the game, buy acai natural energy boost without prescription. Less than a year ago, Order acai natural energy boost online, GM was literally forcing their Hummer dealers to build an idiotic Quonset hut building that never moved the sales needle and then they announced to the world that they were selling Hummer. Actions such as these have destroyed GM’s credibility.

Chrysler has erred in many of the same ways. The big difference being that Chrysler has never had a solid rapport with their dealers – post Iacocca, buy generic acai natural energy boost. They have constantly brow beaten their dealers to accept unwanted, Order acai natural energy boost from us, unsalable, and poor quality product.

A huge example of corporate immorality is GM’s testimony before Congress trying to convince Senators and Representatives that by eliminating 1323 dealers, they will save over 1.25 billion dollars (928, acai natural energy boost drug,000 per roof top). Buy acai natural energy boost without prescription, On the face of their information, those not totally familiar with our industry may naively accept their figures, but the truth is dealers cost them very little.

Let’s review the list they compiled to support their argument:

• Dealer Margin (1% market support)
  This is product advertising where GM has contributed 50% and the dealer contributes half to advertise GM products with the minimal dealer identification at the close of the commercial. Canadian pharmacy acai natural energy boost, It is only in fairly recent years that dealers paid anything toward GM’s product advertising – that advertising likely will continue – and there is no “savings” to GM.


• Incentives Paid Directly to Dealer
  GM has overpriced their product to provide the gross margin to pay these incentives. The customer has received “the benefit” of the incentive – not the dealer – and it’s doubtful incentives will go away, certified acai natural energy boost. Regardless of who sells the vehicle, Online acai natural energy boost, the incentives become a cost of sale. Eliminating dealers will not change this cost per vehicle, buy acai natural energy boost without prescription.


• Standards for Excellence
  This one is really a stretch. Each dealer who “participated” paid a healthy sum to GM for each franchise line, order acai natural energy boost on internet. Unrealistic sales goals were established by GM unilaterally and if a dealer didn’t hit objective, Buy acai natural energy boost overnight delivery, the dealer lost the investment in SFE. SFE was what internally GM refers to as a self-funding program. Buy acai natural energy boost without prescription, Eliminating dealers will not reduce this expenditure. The customer was the beneficiary of these funds as dealers scrambled to make their quotas, acai natural energy boost internet.


• New Vehicle Inspection
  The amount GM pays a dealer for new vehicle inspection is on a per vehicle basis. Acai natural energy boost cheap, It is computed into the cost of each vehicle. Selling more vehicles will cost GM more money. Selling less vehicles will cost GM less money, buy acai natural energy boost without prescription. The number of dealers has absolutely no bearing on this cost, generic acai natural energy boost cheap. Fewer dealers will not save GM one penny on this item. Acai natural energy boost cost,


• Factory Wholesale Floor Plan Support
  What a great business the manufacturer has. The materials they use to produce a vehicle come from suppliers who are paid 30-60 days after receipt. Buy acai natural energy boost without prescription, When the vehicle is produced, it is immediately billed to the dealer. The manufacturer gets paid immediately, acai natural energy boost buy. The dealer, Acai natural energy boost australia, more often than not, floor plans the vehicle with the captive finance company – in this case GMAC. GMAC charges roughly 1% over prime while the vehicle is in the dealer’s stock, acai natural energy boost online. When the vehicle is sold, Buy acai natural energy boost from canada, quite often GMAC gets the finance contract and the interest – this time from the consumer. Now that’s throughput, buy acai natural energy boost without prescription.

In order to “encourage” a dealer to buy (stock) more vehicles, GM offers an incentive – wholesale floor plan support, purchase acai natural energy boost without prescription. The number of dealers does not change this cost one iota. Acai natural energy boost online without a prescription, If GM builds more vehicles, floor plan support in total increases. If they build fewer vehicles, acai natural energy boost overnight shipping, the floor plan support decreases.

• Fuel Fill
  This is another “cost of sale” item attributable to each individual sale. Buy acai natural energy boost without prescription, The number of dealers does not affect this cost. Purchase acai natural energy boost online, The number of vehicles sold does.

GM management states, “a right-sized dealer network will allow GM to systematically reduce virtually all direct dealer support programs which cost GM approximately 2.1 billion a year.” an asterisk points out that this is based on a projected 3.1 million GM sales volume, acai natural energy boost generic. None of the “so called” dealer support systems listed above are affected by the number of dealers. Order cheap acai natural energy boost, If GM thinks they can eliminate these costs of sales, they can do so without throwing 2,300 dealers or 1, buy acai natural energy boost without prescription,323 dealers, whichever number is the correct one, in the street. Competition in the market place drives these costs as a business necessity. Buy acai natural energy boost without prescription, Toyota has them, Lexus has them, Nissan, VW, why does GM feel they can eliminate “virtually all direct dealer support programs”?

The maps of the states showing the number of domestic (Big 3) dealers vs. the import dealers is eye opening indeed. The percentage of domestic vehicles in operation is between 73.7 and 86.1% of all vehicles in operation where the domestic dealers dramatically outnumber import dealers.

GM and Chrysler; as well as the Treasury Department and the American Public (now stockholders), are on a path of self-destruction by eliminating dealers. In those markets where import dealers dramatically outnumber domestic dealers, the domestic vehicles in operation drops to 40.2 to 55.1%.

GM’s estimate of 3.1 million sales volume is grossly overstated. MPG projects a 23% reduction in GM and Chrysler sales in 2010, and if they both follow a trend-line that dates back to the turn of the century, we predict an annual reduction ad infinitum. GM’s market share for 2010 will be in the range of 14-15% on a volume of 1,345,000 vehicles (a 9.5-10 million car and light truck year nationally), buy acai natural energy boost without prescription. Chrysler will be lucky to hit 7.5-8% market share with a sales volume of 748,000 vehicles. If Fiat experiences the typical timetable of entry into the USA, we will not see “Fiatslers” until 2011.

We are asked all the time what various franchises are worth. (I’m looking at a Nissan store – what’s the multiple?) I have asked numerous dealers recently “What do you think a publicly held company would pay for a GM or Chrysler store?” I’ve yet to hear an answer above “zero”.

General Motors Corporation and Chrysler along with the whiz kids from the Treasury Department have effectively destroyed the value of their franchises. They have also put a giant crack in the overall automotive franchise system. On average, a dealer today has at least 10 million dollars in assets plus land and buildings. Who, in the future, will take the risk of one day losing it all because a greedy manufacturer couldn’t manage their business?

Written by my dad, "the original Dilmore car guy" 

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