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GM Launches Dealership Overhauling Program This Year

General Motors plans to change the appearance of its dealerships by carrying out renovations throughout its facilities. This might be a first in the automotive industry given the magnitude of the renovation program. Taking a closer look this might be a normal step considering that dealerships represent 99 percent of the car manufacturers' retail volume. The ambitious project includes the refurbishing of 460 dealerships by the end of the year, with more than 4,000 facilities to be overhauled by the end of 2014.

The optimistic forecast was revealed by Don Johnson GM Vice President of U.S. Sales Operations during a presentation for analysts and media, as reported by AutoNews. The GM Essential Brand Elements program as it is called features a system which enables dealers to receive bonuses for renovating their stores. Worth mentioning that bonuses for larger stores can hit the $100,000 plus mark.

Though the program looks attractive some dealers have displayed reserved enthusiasm due to the fact that it is difficult to get bank financing in order to overhaul their stores. Also another aspect of dealers lack of enthusiasm when it comes to invest in their showrooms reflects the actual business profitability.

Also Don Johnson explained based on figures from GM, Poll & Co and the National Automobile Dealers Association, that almost 4,500 US dealers have improved. The figures revealed that 92.8 percent of dealerships are profitable, which means a rise of 15 points since 2009. Part of the figures which referred at the dealerships profits were extracted from GM ranks when it faced bankruptcy back in 2009.
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