By on June 15, 2009

Why would GM’s VP of sales and marketing for North America expect his company’s [remaining] dealers to contact their elected representatives to support Government Motors’ dealer cull? Times two when you consider that GM is planning on making another round of dealer cuts in the future. “Hey. It’s Mark LaNeve. Thanks for lobbying for our downsizing. Oh, by the way, you’re next.” No, I’m not making this up. Here’s the e-mail, complete with fill-in-the-blanks phone script. [Thanks to you-know-who-you-are.]

Call to Action: Contact Your Legislator TODAY
Mark LaNeve
06/12/2009
TO: All GM Dealers

Recognizing it has been an extremely difficult period for everyone, I want to thank you for your continued commitment to General Motors and our mutual business. There is no better time than now to join together in a concerted effort to keep the momentum moving towards the reinvention of GM.

Keeping that in mind, it is critical to let your voice be heard to ensure the viability of our business well into the future by contacting U.S. Senators and Representatives in your districts. There have been significant reports, especially over the last week, indicating resistance by politicians who do not understand the steps GM must take to become a leaner, more customer focused and profitable company.

While talking with your representatives, following are some key points to remember from GM’s CEO and President Fritz Henderson during his June 3 testimony, specifically, relative to GM’s dealer network plans and the impact on consumers, dealerships, and their employees:

• As the “face of GM,” dealers are critical partners in our efforts to create a New GM that places customers at the center of all we do.
• In order to build a stronger, more viable GM, it is essential to have the best performing dealers, in the right locations, aligned with GM’s brand distribution strategy to be a part of GM’s reinvention.
• GM determined which dealers would be retained for the new GM by utilizing results of a thorough market and dealer performance analysis in each market across the United States.
• GM has maintained a strong position that dealers are not a problem but an asset for GM.

Following are a couple of convenient tools for use by you and your entire dealership team to provide important information about key GM initiatives to help your legislators better understand some of the necessary steps we are taking and, hopefully, gain their support:
1. To reach your respective U.S. Senators and Representatives by phone, you can call the Dealer Voice Hot Line at 1-866-874-9356 and follow the prompts. The phone script and additional talking points beyond those Fritz shared in his testimony are included at the end of this letter.
2. To send an e-mail to your legislators, you may access the WWW.GMDEALERVOICE.COM URL address. Once on the site, prompts will navigate you to a template letter that will be sent immediately following entry of your information.

Thanks again to you and your dealership teams for taking time to support these efforts.

Sincerely,

Mark LaNeve
GM North America Vice President
Vehicle Sales, Service and Marketing
__________________________________________________

PHONE SCRIPT AND ADDITIONAL TALKING POINTS FOR PHONE DISCUSSION:

· Hello Senator/Congressperson____________, my name is ____________ and I have been a part of [dealership name] in [city and state] for _____ years. [Add personal detail here.]
· I’m calling to urge you to support—as I do—the recent steps General Motors has made regarding their dealer network in the New GM. The New GM must be a leaner, quicker, more customer-focused and more cost-competitive company.
· As part of its reorganization efforts, GM has been required to significantly reduce the size of the company, which includes rightsizing its manufacturing operations, retail distribution outlets and supplier network. (Note: This significantly impacts GM employees and retirees.)
· Reduction of the number of dealerships is a key requirement of this goal. With your support, we can ensure that our dealer network matches a smaller, stronger and smarter GM built for today’s market and competitive realities.
· A smaller dealer network reduces costs associated with support provided for information technology systems and sales person incentives to field training and advertising. This support costs GM roughly $1,000 per vehicle, and being able to reduce vehicle prices will directly lead to more sales.
· Fewer dealerships will allow the New GM to focus on the four core brands – Chevrolet, Cadillac, Buick and GMC. This will attract and retain more private capital, the best dealer operators, and most importantly, new customers.
· Even after the cutbacks, GM will still have the most extensive dealer network in the country. More than Toyota. More than Honda. More than Ford.
· Thank you.

If you have difficulty reaching your legislators, we ask that you please try again until you are successful at having your voice heard.

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12 Comments on “GM’s LaNeve to Dealers: “Contact Politicians to Support Dealer Cull”...”


  • avatar
    superbadd75

    Mark LaNeve, Fritz Henderson, etc.:

    You are all gutless pigs and deserve to be hung by your manhood (or womanhood, as it applies) from the sign of the nearest GM dealer to lose its dealer agreement. I fully believe that GM’s commitment to reorganizing is anemic at best, and everyone with offices at GM’s RenCen should be forced to box up your belongings and hit the road. General Motors will not be viable as long as you people are running the show.

  • avatar
    PeteMoran

    RF, me-thinks you MUST be making this dog eat dog stuff up……

  • avatar

    been saying for years that GM was out to relocate the industry’s production offshore and end up owniing distribution. once rid of as many dealers as possible, watch for GM to buyout/merge with remaiining to wrest control. build ’em offshore and sell ’em on the net.

  • avatar
    gslippy

    Cannibalism – tastes like chicken.

  • avatar
    GS650G

    This is like training your outsourcing replacement prior to being laid off. Obviously the same mentality that brought us inhumane treatment of workers is doing the dealer cull.

  • avatar

    the biggest question in the auto industry is why this guy is still there?

  • avatar
    Robert Schwartz

    This is wonderful. Government Motors has actually made car dealers sympathetic characters.

    Maybe life insurance salesmen should hire GM to buff up their image.

  • avatar
    crackers

    GM’s Dealer network was forced into cannibalism years ago. They fight among themselves for scraps of sales from customers who don’t care about the product and only buy on price. GM is just taking advantage of this to get the surviving dealers to help finish off the rest.

  • avatar
    RetardedSparks

    I have a question ( a real one, not a sarcastic one): what exactly does it cost GM to support a dealer? Why can’t GM just let the unsuccessful ones go out of business on their own? A whole lot of dealers have done just that over the past 18 months. I’m not clear why closing a dealer saves cash flow for GM?

  • avatar
    chuckR

    Anyone who has ever had a distribution agreement with a manufacturer can give another side of the story. They always want more sales, more salesmen, more prospecting, spiffier facilities, etc, etc. The demands are theirs, the costs are all yours. It’s their agreement, governed by the laws of their state of choice and the terms are often grossly one sided. In the case of the domestic car companies and car dealers, it seems like an absolutely poisonous relationship.

    I have had a few software distribution agreements, exclusive and non-exclusive. One working relationship was absolutely great, the others varied from moderately OK to geez, I’m glad I’m not in that snake pit any more. But the contracts themselves without exception were onerous.

  • avatar
    70 Chevelle SS454

    Cough…conspiracy in restraint of trade…cough.

  • avatar
    jpcavanaugh

    What these letters should really say:

    Dear Senator/Representative
    I am one of the GM dealers who somehow managed to survive the first cull. In order to avoid the next one, I am going to be a craven coward and ask you to ignore the plight of those who have just been thrown over the side. I suspect that GM will cut me next if I do not send this letter, so I am sending them triplicate copies.
    I love GM and would sacrifice my life for it, so I want to continue to sell its world-class products like the Chevrolet Cobalt and Impala. As “The Face of the New GM”, I look forward to building a brand new gleaming showroom so that I can double my overhead to make my lord and master look more successful. So please finish shoving the knife between the ribs of the dealer down the street from me so that I can steal his customers and continue to hope that GM will treat me differently.
    Yours very truly, (Your Name Here)

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