GM will pay dealers who meet upgrade goals
GM will pay dealers who meet upgrade goals
DETROIT -- General Motors Co. is promising cash to dealers who upgrade their dealerships, train employees and make other improvements.
Dealers who achieve the goals will be paid bonuses each quarter based on how many units they buy from GM.
The company declined to reveal the size of the bonuses last week.
The program, called Essential Brand Elements, will be rolled out over the next two weeks at regional meetings with the 4,100 dealerships that survived GM's cuts in U.S. Bankruptcy Court. The automaker also wants dealers to use GM's Web programs to win customers and share data with other dealers.
Mark LaNeve, vice president of U.S. sales, said, "They're still dealers if they don't comply, but they don't get that money."
The program starts Oct. 1.
At the regional meetings, the company also will tell dealers that:
-- GM expects each surviving dealership to increase sales next year by at least 25 percent over 2009.
-- If a dealership is picking up new sales territory, GM will work with GMAC Financial Services to provide the dealer more floorplan loans.
-- Over the next 18 months, GM will boost advertising spending for each division well above amounts in the first half of this year. LaNeve said advertising that starts next month will be a "creative breakthrough" intended to quickly change consumer perceptions.
Said LaNeve: "We think in some markets Chevrolet dealers will be able to improve their sales and profitability by 20, 30, 40, even 50 percent."
Dealers who achieve the goals will be paid bonuses each quarter based on how many units they buy from GM.
The company declined to reveal the size of the bonuses last week.
The program, called Essential Brand Elements, will be rolled out over the next two weeks at regional meetings with the 4,100 dealerships that survived GM's cuts in U.S. Bankruptcy Court. The automaker also wants dealers to use GM's Web programs to win customers and share data with other dealers.
Mark LaNeve, vice president of U.S. sales, said, "They're still dealers if they don't comply, but they don't get that money."
The program starts Oct. 1.
At the regional meetings, the company also will tell dealers that:
-- GM expects each surviving dealership to increase sales next year by at least 25 percent over 2009.
-- If a dealership is picking up new sales territory, GM will work with GMAC Financial Services to provide the dealer more floorplan loans.
-- Over the next 18 months, GM will boost advertising spending for each division well above amounts in the first half of this year. LaNeve said advertising that starts next month will be a "creative breakthrough" intended to quickly change consumer perceptions.
Said LaNeve: "We think in some markets Chevrolet dealers will be able to improve their sales and profitability by 20, 30, 40, even 50 percent."
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