Monday, 21 January 2008
General Motors considering larger urban retail centers; would separate parts and service from showroom
« Kia set to launch Certified Used program this year; last among full-line auto manufacturers | Main | Smart brand to rely on customer testimonials as major marketing strategy »At next month’s National Automobile Dealers Association convention in San Francisco, General Motors will reportedly detail a plan to consolidate major brands under single retail roofs in large urban areas. GM is concerned about maintaining competitive presence in cities, as some dealers have sold their businesses due to real estate values higher than the franchise values themselves.
The new approach would involve the consolidation of Cadillac, HUMMER and Saab into a core brand group, in the same way that Buick, Pontiac and GMC franchises have merged. Chevrolet and Saturn would continue to stand independently, leaving GM with four distinct product “lines.”
One drastic change could involve the separation of showroom and service center, as precious floor space would be used to display product. Service centers would presumably migrate to less expensive city outskirts – a phenomenon that has occurred in a few, albeit limited, markets. But would car buyers feel alienated by the dealers sending them down the road for oil changes?
Analysis: Combining GM brands may be sensible from a business stand point, but dealers should be wary about displaying different brands sharing the same architecture or platform next to one another.
Source: Automotive News [Subscription required]
[Trackback URL for this entry]