gm filing chapt 11

[Shran]

I dont know about other cities but here GM has way too many dealerships. thats probably why they are in so much trouble now. ford had the same problem but they actually noticed it many years back and started doing something about it.

They do have a lot of dealerships but I'm not really sure that's the real issue. Most of the dealers out there are privately owned franchises...they just have licenses to sell certain brands.

 

[85_Ranger4x4]

They do have a lot of dealerships but I'm not really sure that's the real issue. Most of the dealers out there are privately owned franchises...they just have licenses to sell certain brands.

The automakers have to make cars to sit on the lots until they get sold before they get paid for them. They actually still own the new cars sitting on the lot, I know of a couple dealerships that had cars stored offsite when the company stopped in for a audit and got major penalties for missing cars... if it isn't on the lot the dealer has to pay for it on the spot plus penalties.

I forget how many Chrysler and GM dealerships they closed that sold less that 50 cars a year, and of course for every car they sell they order in another to fill its place so it is a never ending saga. Most smaller dealerships stay alive on used car sales and repairs, not on selling new cars.

 

[Jason]

Actually, most ALL dealerships make the money on used cars and service. It's nearly impossible to turn a profit on the new car department. I'll look and see if I still have any old P&L's from my dealership management days.

 

[85_Ranger4x4]

Actually, most ALL dealerships make the money on used cars and service. It's nearly impossible to turn a profit on the new car department. I'll look and see if I still have any old P&L's from my dealership management days.

It is a double edged sword for the smaller dealerships, the same people that drive up to the city to get a better deal on their car usually take it to the local dealership for work to save on shop labor.

Sometimes the bigger dealerships farm out larger repairs to the smaller dealerships too. The dealership my brother used to work at did a lot of transmission and plug blow out repairs in Superduties for a very large dealership out of Omaha. Apparently they just didn't want to deal with them. The one he is at now is farther away, so they don't get the business.

 

[mentalbreakdown00]

85 ranger, yes the SUV boom was huge, but they should have known that bubbles burst, just like housing markets. Has always hapopened and always will. Now you say the stock was worth more/ less. I am still wondering why we are using currency that is fiat money and the inflation of it has dropped it's buying power almost 75% in less than a hundred years. Nopt only our money in our wallets is against our constitution, and the constitution is supposed to be the supreme law of our land making any other law null and void, but i'm just a stupid mechanic what do I know?

 

[wrecking-crew]

i still cant beleive that chevy went under so soon after chrysler

that and

scrap prices may drop soon........... so pick up extra rbv parts while your at it before the jy crush em.

 

[warrior24]

I used to be Chevy guy but since GM changed from General Motors to Give More I went over to Ford. Dont know that any of there new cars will dignify me buying them, Not that I have the cash. But they are dead to me pun intended.

 

[Ozwynn]

the SUV "boom" is still huge. I have been watching the prices on V8 powered SUVs because we desperately want either a 2003+ V8 Explorer or a 2003+ expedition or a 99+ Excursion (although now that we have an Supercab truck, now she thinks she wants a 4 door F150 super cab ..... 2000+?) and the prices have been going up (to the point where I am going to wait for the crash again before I buy one) and new SUV sales are up 15% which is not as good as they were last year at this time but they are still selling.

 

[Mark_88]

Chapter 11? I never read the first ten chapters so I hate to hear about the end of a company without ever having the whole story...

Oh, btw, I'm joking...they are not going away too soon...most dealerships won't shut down until October 2010 from what I've read...but maybe that's only Canada...

 

[Jason]

the SUV "boom" is still huge. I have been watching the prices on V8 powered SUVs because we desperately want either a 2003+ V8 Explorer or a 2003+ expedition or a 99+ Excursion (although now that we have an Supercab truck, now she thinks she wants a 4 door F150 super cab ..... 2000+?) and the prices have been going up (to the point where I am going to wait for the crash again before I buy one) and new SUV sales are up 15% which is not as good as they were last year at this time but they are still selling.

The prices are going up because the incentives are going up faster. I don't know about your area, but they are practically giving stuff away up here. Of course, it sounds like you are looking at used vehicles which are going up due to people needing better credit to buy new.

Just for comparison. A friend just last week bought a 2009 GMC Sierra. Every option but leather. It's a 4 door with 4wd, nav and power everything, even DVD in the headrest. Sticker price? $38k. He paid $24k over the curb.

 

[skippy]

What really makes me mad is we apparantly no longer have a free market system. Unless you are a small fry like me. If I make bad decisions I can't go crying to the government in my own personal ride (not like I have my own plane) and beg for some money, nor would I for that matter. I think we are at a tipping point in america where everyone has become dependent on the goverment, which is not how it's supposed to be. If we go to socialized health care say good bye to me cause the government will let me die because I will cost to much to keep alive.

Face it,we as a nation are changing.We can't be allowed to fail,pick ourselves up and get back in the game,it's just to painfull to be free,we need the government to provide for our every need.

Government healthcare will be better because it will be free,doctors and nurses will be happier with income limitations,you will be happier with rationing,and the government officials overseeing who gets what will be happy with their secure government job and newfound power.And because the government will run it,it will be super efficient like the VA,Medicare,Social Security and other programs.Oh,and you non union folks will like the unionization of our healthcare system.

Wait till you see what all this is gonna cost.

 

[mentalbreakdown00]

It's gonna cost me my life. I will be too expensive, so they will cut their cost. I have severe asthma. I do believe how ever that I should be able to get insurance unlike now.

 

[skippy]

It's gonna cost me my life. I will be too expensive, so they will cut their cost. I have severe asthma. I do believe how ever that I should be able to get insurance unlike now.

You should be ok,they(washington) have no clue what too expensive is,unless it has to do with national defense.