GM says it will try to close 2,100 dealerships as part of reorganization - San Jose Mercury News
Somebody said they needed cars to haul?
OK, so now they're talking about closing 2100 dealerships instead of the 1100 they were talking about last month. The question that springs to my mind is this: Where are all those cars going to go? Other dealers? Back to GM? Are they going to sink them off the coast of Florida and create valuable habitat for marine life?
It's rumored that the units will go back to GM, and then be re-distributed to the remaining dealers. Seems more likely that this would happen on paper, rather than at fifty cents a mile. Even if they apportion cars on paper, and then transfer [physically, not financially] dealer to dealer, it's still a huge logistical problem.
Who is going to broker out these loads? The Secretary of the Treasury?
I don't think so. If I had to bet, I'd lay money on your good old neighborhood delivery man: UPS. For years, UPS has sent their consultants into some of the largest manufacturers in the US to squeeze cost out of their inbound and outbound logistics chains. If I was looking to sell the services of my large fleet of auto transport trucks, I'd be calling 1-800-PICK-UPS and trying to find out how to get on their short list of service providers.
Tuesday, June 02, 2009
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