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Earlier this year, we reported that General Motors appeared to be planning to cut down on the number of dealerships they have in the U.S. Right on the heels of that announcement comes word that the American auto maker wants to convert their dealerships into “superstores” appearing in major metropolitan areas to maintain a high profile.
The call for such a plan has become necessary because many dealership owners in big cities are actually selling their dealerships because the real estate on which they rest is more valuable. The “superstore” would put all GM brands under one roof and should help preserve their presence in cities where real estate is costly.
To create space for bigger showrooms to exhibit the vehicles at the “super stores” dealers will be asked to place their service and parts departments in other locations.
More details can be found at FP Posted. This might prove out successful. By combining space to exhibit their entire brand line, we would think the dealer network would be a lot more efficient. No wasted stores in the big cities. But there is the inconvenience of having parts and service somewhere else.
[Editors' Note: At an informal round table with Mark LeNeve, GM's North America VP of Sales, Service, and Marketing, at the Chicago Auto Show, he explained that the the automaker was, yes, helping certain dealership move their repair facilities offsite or pair various brands together (i.e., Chevrolet and Buick). However, this is in cooperation with the dealerships who, faced with rising real estate prices, want to maximize floor space as much as possible. There is no over-arching policy forcing such separation/mergers. GM continues its four major segments (i.e., Buick/GMC/Pontiac, Cadillac, Chevrolet, Saturn).]
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