GM and Chrysler Dealers on a Face Lift

GM and Chrysler have always been known for their profitable dealership.  These companies have curtailed their dealer network considerably after their bail out by the US tax payers. These major players in the auto segment took time while recovering from the stage of bankruptcy. The cutting down of the dealer network was the major initiative in restructuring their bankruptcy. The lower number of dealership witnessed sustainable margins and about 90% of the dealerships were profitable. The dealership number for GM went down from 6,246 in 2008 to 4,335 in 2013, while for Chrysler the number went down from 3,200 in 2009 to 2,600 in 2013.
The analysis made by GM and Chrysler revealed that they had too many dealers and that was one of the reasons for their down trend. This was corrected by bringing the number of dealers down, introducing the new models and that resulted into the record breaking sales figures per dealership. The dealers started receiving better profits and most of them invested these profits in upgrading the facilities. The money was invested in improvement and expansion of the stores and other such customer friendly activities. The result is the happy customer base for GM and Chrysler.
The dealership termination drive also made the dealers work on their flaws to meet the requirement of continuing with the dealership. They started working more towards the brand image and that worked for these auto giants which were on the verge of closure at one point of time. The customers who were against buying any of these auto products are now again finding their dream cars from these automobile companies. Let us hope that the trend of better customer servicing and the super performance models continue so as to let the car lovers enjoy another major innovations from GM and Chrysler.

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