Volume 10, No. 3 November - GM Dealer Development

2009
Volume 10, No. 3
November
Dear Dealers,
October gave us the most promising
sign of the year as GM reported our
first US sales gain in 21 months. Thank
you for doing what you do best –
selling cars and trucks that customers
aspire to buy and are proud to own. Now, we must
continue to work hard to drive positive results and
earn our customers’ confidence.
Over the past several months, we’ve all
experienced significant changes, hopefully learning
some valuable lessons along the way. However, a
constant during this transitional period has been
GM’s ongoing commitment to the diversity of its
dealer network as a business imperative.
Your MDAC representatives have been diligent
in carrying the message to Fritz Henderson, and his
leadership team. I can assure you that during the
past several months, the MDAC has been looking
beyond their immediate roles and taking a stand
for what will deliver short and long-term objectives
for the MDD program.
That commitment continues today by the
significant ongoing support from GM’s leadership,
which includes quarterly reviews of the program by
the Senior Oversight Board, regular engagement
by senior leadership in Minority Dealer Advisory
Council meetings and the support given to the
MDD Dealer 20 Group program.
Today, we are looking at alternative ways to
engage dealers and their management teams via
virtual workshops that offer support in critical
dealerships areas. For example, reports indicate
that more and more shoppers use the internet to
start their search for a vehicle. Working with our
20 group chairs and vice-chairs, we are developing
a series of internet workshops to support dealers’
efforts in maximizing internet opportunities. Please
provide us with your input for future workshops.
Watch your e-mail to register for one or more
upcoming complimentary sessions.
In closing, please join me in welcoming Susan
Docherty as the new vice president of U.S. Sales,
replacing Mark LaNeve, who left GM for a position
outside the auto industry, and Eric Peterson, who
assumed Dawin Wright’s role along with additional
responsibilities, as director of Industry Dealer
Affairs. Additionally, we want to thank Dawin
Wright, who retired after 33 years of dedicated
service, most recently as executive director of
Dealer Development, for his passion, leadership and
support during one of the most challenging periods
in GM’s history.
Wishing you a safe and happy holiday season!
Alma L. Crossley, Director
Minority Dealer Development
CA
LE
N
D
AR
December 2-3, 2009
MDAC Meeting,
Detroit, MI
December 4, 2009
Senior Oversight Board,
Detroit, MI
March 10-11, 2010
MDD Dealer 20 Group
Business Meeting,
Detroit, MI
Welcome Aboard, Eric Peterson!
About Eric
Eric E. Peterson was named Director of Industry Dealer Affairs for General Motors’
Sales Operations effective October 1, 2009. Peterson, who reports directly to James
Bunnell, General Manager, Sales Operations, is responsible for leading General Motors’
effort in working with GM’s dealer network. Eric Peterson assumed Dawin Wright’s
role as head of Dealer Development. Minority Dealer Development, under the direction of Alma
Crossley, reports to Eric Peterson. Additionally, Peterson’s expanded responsibilities include the Dealer
Contractual Group, Public and Mega companies, as well as various dealer councils, including the
National Dealer Council and associations on a state and national level, namely NADA and ATAE.
In his most recent assignment, Peterson was the Regional Sales and Marketing Manager of the
South Central Region for General Motors’ North American Operations, in charge of the sales and
marketing performance of the Buick, Pontiac and GMC Truck brands in the region. He held that
position since January 2003. Peterson has prior experience in Dealer Development given in 2001 he
was appointed Executive Director and launched the Women’s Retail Network. Peterson began his GM
career in 1976 and has held numerous positions across the GM brands.
We are happy to have Eric Peterson on board and look forward to his experience and knowledge
gained throughout this career.
Message from Eric Peterson
Dear Dealers,
I am excited and enthusiastic about my
new position as Director of Industry Dealer
Affairs. As many of you know, I am not a
stranger to Dealer Development and one of
my passions is the success of the Minority
Dealer Development portfolio. Under the
direction of Alma Crossley, Minority Dealer
Development (MDD) is poised with the
resources and tools to help you become
successful in the marketplace.
My goal is to work with you and
the MDD team to develop a vision and
strategies to help grow and retain the
portfolio of GM minority dealers. Given the
country’s forecasted population changes
over the next several decades, MDD is a
key business imperative to winning in the
market and driving profitability in the new
General Motors.
I have had the chance to meet and work
with many of you, and I look forward to
meeting more dealers in the future!
Regards,
Eric E. Peterson
Director, Industry Dealer Affairs
Small opportunities are often
the beginning of great enterprises.
Demosthenes
Greek orator & politician in Athens
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A Special Thank You, MDAC
For the past two years,
Manuel Gonzalez has
been leading the council,
demonstrating integrity
and respect through GM’s
ever-changing landscape.
Manuel Gonzalez Manuel’s role as co-chair
concludes at the end of
this year. Thank you, Manuel Gonzalez,
dealer co-chair, Robert Turner, vice-chair,
and the entire MDAC for your hard work
and focus especially during this past year.
Looking ahead, we are proud to
announce the newly-elected MDAC
dealer representatives who will serve for
the 2010-2011 two year term. The Council
will vote for new officer positions in
January 2010.
Congratulations to our newly-elected council
members! Welcome and we look forward to
working with you in 2010.
Wayne Abbs
(Native American)
Wayne Neal Chevrolet
Commerce, GA
Ivette Dominguez
(Hispanic)
Alpine Buick Pontiac GMC
Denver, CO
Michael Bates
(African-American)
Westborough Buick Pontiac GMC
Westborough, MA
Pamela Rodgers
(African-American)
Rodgers Chevrolet
Woodhaven, MI
Martin Cumba
(Hispanic)
Sun Chevrolet
McMurray, PA
Cary Wilson
(Asian)
Ron Carter Autoland
Alvin, TX
More information will be featured in the next INFORM.
Please reference the Dealer Development website at
www.gmdealerdevelopment.com, Minority Dealer
Development, Advisory Council, for the latest updates.
OPPORTUNITIES
Dealers interested in being placed on the active list for
potential dealership upgrades or additional dealerships,
should send an e-mail to Sandra Reid-Smith, National
Candidate Manager, Dealer Development. Please e-mail
her at sandra.reid-smith@gm.com.
A dealer’s request for an upgrade will be evaluated and
the dealer will be contacted by the National Candidate
Manager with a response to the upgrade request. Please
submit the following information with your request:
• Your interest in an upgrade and/or purchase of
additional dealerships
• Your geographic preferences, if any
• Your maximum available investment amount
(this may be presented as a range or a specific
dollar amount)
• Any other information GM should take into
consideration
GM considers a number of factors for consideration
such as: Dealer Performance Summary scores, available
investment funds, geographic preferences/flexibility, other
information you or the region provides.
The dealer is responsible for reviewing and updating
this information annually, or more frequently, if the
information on file has changed.
Additionally, if you know of anyone who has
automotive experience and is interested in a GM franchise,
or if you are interested in becoming a training dealer,
please contact Sandra Reid-Smith at 313-667-9237.
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GMAC ASSISTANCE
PROCESS
Dealers are encouraged to follow the
process below if they have GMAC issues
and/or concerns:
1.Contact your local Account Executive
2.Next, elevate your concern to Randy
McElwain, Relationship Manager,
GMAC Financial Services & GMAC/
MDD liaison, detailing discussions
held at the branch level. You
may contact him by telephone
at 313.665.1472 or by e-mail at
randall.mcelwain@gmacfs.com
3.The final escalation point is Kathy
Ruble, Director, GMAC NAO Sales,
Training & GM Support. Kathy
may be reached at 313.656.6773
or send an e-mail to her at
kathleen.ruble@gmacfs.com
Welcome!
Congratulations to our newest minority
dealer and continued success!
Omar Rodriguez
Carl Black Buick Pontiac GMC
Orlando, FL
Premier Performers 2008
GM Minority Dealer Development recognized members of the Premier
Performers’ Club at the August 2009 MDD Dealer 20 group meetings held in Detroit,
Michigan. This elite group of participating 20 group dealers achieved outstanding
financial performance in the 2008 calendar year. These men and women set the
pace for exceptional performance.
Congratulations to our 2008 Premier Performers. Continued success in 2010!
Dealer Name
Years in Club Dealership
Location
Ivette Dominguez
2
Alpine Buick Pontiac GMC
Denver, CO
Stephen R. DeAnda
6
American Chevrolet-Cadillac
Muncie, IN
David Ferraez
10
Green Brook Buick Pontiac
GMC HUMMER
Green Brook, NJ
Bill Perkins
12
Merollis Chevrolet Sales & Service
Eastpointe, MI
Cary T. Wilson
9
Ron Carter Autoland
Alvin, TX
INTRODUCING;
LIVE MEETING
TOMERS
S
U
C
T
C
WORKSHOPS ATTRA VE SALES
DRI
Announcing the Internet Workshops, a series of
web-based sessions, that may help dealers realize even
more value from the internet. Working with the MDD 20
group chairs and vice-chairs, we are developing a series of
Internet Workshops to help dealer participants with their
business internet efforts. These workshops are conducted
by your dealership peers, as well as subject matter experts.
It’s just another way to look at attracting customers and
driving sales, and because it’s virtual, you can participate
from your dealership. They are 30 minute modules
followed by an optional 30 minutes of open dialogue.
The first series of workshops were held in November, 2009:
• November 12 - “First Class” Internet Manager Practices.
The first workshop, hosted by Mr. Chris Sims, Internet
Manager at Fremont Chevrolet, Fremont, CA, offered
candid insight on day to day best practices and lead
follow up.
MH PORTFOLIO
CONTACTS
Should you have an interest in securing
Motors Holding as a potential investment
partner in a Request for Proposal on a
dealership opportunity, please feel free to
contact the appropriate Portfolio Manager in
your region to discuss and review the proposal.
Regions
Contacts
North Central
Rory Gambrell
630.961.6440
rory.gambrell@gm.com
Northeast
Tim Rinke
914.244.6098
timothy.j.rinke@gm.com
South Central
& Southeast
Bill Reineck
972.443.3432
bill.reineck@gm.com
Western
Terri Booker-Batch
805.373.5496
terri.booker-batch@gm.com
• November 17 – “Pay Per Click” hosted by
Eric Kulongowski, GM Digital Advertising & Marketing,
focused on understanding search engine marketing and
live Google interaction.
We are developing the remaining series of workshops
with input from the dealers who participated in the live
sessions. If you have an idea or topic you would like to see
covered in these workshops, please call Alma Crossley at
313-667-5899 or e-mail her at alma.l.crossley@gm.com.
Be part of the future internet workshop sessions. Watch
your e-mail for more information.
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Statistics
Total MDD Rooftops 10/31/09
% Minority to Total GM
277
4.8%
Paul Stowe is the
NCM moderator
for MDD Dealer
20 Group 4. He
can be reached at
440-452-5967
or by e-mail at
pstowe@ncm20.com.
FOCUS = PROFITABILITY
One fact for certain, regardless of all the “negative noise” in the marketplace, there are dealers who find a
way to make it happen — and I mean make more money.
I have reviewed the August 2009 year-to-date data for over 607 GM dealers in NCM’s database. We all
know that this eight month time period was a “wild ride” and yet at the same time, a great ride for many.
Let these numbers soak in:
•
•
•
•
•
•
•
287 out of 607 dealers increased their total dealership profitability versus 2008 — a dramatic 47.3%!
Benchmark dealers Net to Gross 22.2% year-to-date
Benchmark dealers increased their total dealership profitability by 71.8% over 2008
Personnel Expense down 11.3% over 2008
Advertising Expense down 23.8% over 2008
Floorplan Expense down 48.3% over 2008
Gross Profit Per Employee $7462
How about these numbers:
•
•
•
•
Benchmark dealers sold 9.7% more new cars with 15.8% less gross
But here’s the kicker — Benchmark dealers sold 6.1% fewer used cars but increased the total gross by 1.4%
Benchmark dealers increased Total Variable Operations profitability by 88.6% over 2008
Benchmark dealers increased their total Fixed Operations Departmental Profit by 68.6% over 2008!
 Total Fixed Gross up by 1.8%
 Effective Labor Rate up .8%
 Customer Labor Hours up by .3%
 Customer RO counts up by 2.9%
 Fixed Coverage 65.1%
Now that is what I call focus. 287 dealers did a great job of focusing on the opportunities in their
dealerships. They aggressively adjusted expenses and attacked the revenue opportunities. They ignored the
“noise” and all the other distractions. It can be done. Let’s work hard, focus and look for the opportunities.
In closing, NCM is getting numbers to you each month in your composites and in daily NCM Benchmark
Alerts that will keep you and your managers focused on key operational metrics. Look at them and learn to
recognize the value of a clear set of performance benchmarks.
If you need assistance, please contact myself or your moderator. We are here to help.
Stay in touch!
Paul Stowe, Director
In Dealership Solutions
A Division of NCM
Our NCM contacts and New Group Chairs are listed below:
Group #
NCM Moderator
Telephone
E-Mail
Group Chair
Telephone
E-Mail
1
Jeff Bethel
913-488-4695
jbethel@ncm20.com
Michael Bates
508-366-8787
westboroughbpg@aol.com
2
Tom Bear
913-649-7830
tbear@ncm20.com
Ed Dena
559-595-1400
eddena@bretmail.com
4
Paul Stowe
440-452-5967
pstowe@ncm20.com
Dennis Valentine
586-775-8300
dvalentine@merollischevycars.com
5
Kevin Cunningham
913-649-7830
kcunningham@ncm20.com
Jason Chavez
979-849-2454
jchavez@angletonautocenter.com
Julie Hekking
913-649-7830
jhekking@ncm20.com
NCM Group
Coordinator
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