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I can go 20 miles in any direction from the apron of my driveway and visit no fewer than THREE Chevrolet dealers. I don't know if it's just the Cleveland area, but we are abosolutely saturated with Chevy dealers, and I don't think there is the need for it.
Yes, it's great for price shopping and competition from a consumer standpoint, but there comes a point at which it can bite GM in the butt.
Fewer dealers in vicinity = the higher price you will have to pay for your car = more profit for GM.
I mean, if GM is fine with the 6500 dealers they have across the country, fine. But Toyota is kicking their butt right now with just over half the dealer network size.
I think those dealers who do not adapt to todays global automobile market will ultimately find their demise. One of the Chevy dealers close to me is an old one, like 60+ years, and they are a very small neighborhood size - with wood panneling on the walls an a 1970's era vending machine right in the middle of the showroom. All you need are for the salesmen to come out with plaid suits and ultra wide ties with sideburns and a gold chain, and the Bee Gees on the stereo. Its rediculous.
On the other hand, the dealer almost across the street from me is large, clean, modern, and bright. It confounds me that both of these dealers can be selling the same exact product.
It's actually amazing that GM does not have a department that oversees these things. I know all the franchise laws, but there still has to be a standard operating procedure for all GM dealers.
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