Amidst a major re-imaging, GM is pushing dealers to remodel their showrooms, and they are even offering to foot part of the bill. In order to be reimbursed for the work however, dealers must follow guidelines set forth by GM which includes brand-isolation. That is, GM brands must be sold separate from non-GM brands, a point sure to cause a hurdle for many auto malls. Dealers have three-years to complete the remodeling, and can expect to be paid back in five to 10 years. Also, repayment will be based on sales figures and not the cost of renovation.
Dubbed the Essential Brand Elements program by GM, the plan also requires that dealers accepting assistance follow a common web site design, submit their staff members to GM training and hand over their sales and service customer lists so that the company may coordinate marketing mailings.
The amount of assistance received by each dealer will be based on a seasonally-adjusted formula that takes into account the prices of vehicles sold.
The new design campaign is targeted specifically towards younger buyers, as the company wants the in-person experiences of these individuals to match the media market image being built by GM.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)