Extremely well explained.kozzie wrote: ↑To elaborate...OEMs want their dealer body to thrive, by selling and servicing many cars. Due to the huge sums of money required to keep a dealership up to date in technology, training and appearance it is necessary for dealers to make a sizable profit to reinvest in the business. Simply skating along in a facility that is 20 years old with wood paneled bathrooms won't cut it today.
Additionally the OEM must train and support all dealers. To waste those assets on a dealer who is not selling and servicing a fair amount of cars does not make sense.
Plus, with the brand rationalization that GM will be doing, Pontiac-Buick-GMC and Chevrolet-Cadillac stores will converted to full-line GM stores (Buick-GMC-Chevrolet-Cadillac). If GM kept them all, you'd have full-line stores too close together. This was one of the thing Engi-Nir hinted at.