Losing our franchise

[cbop]

I apologize for this rant but it has been making me want to scream for a while and I need to vent.

I have been a GM technician for over 20 years. I have been with my current dealer since '91 and GM has informed us that we are no longer needed. I know a lot of people have strong opinions about new car dealerships but the people I work for are different. In sales, I have heard them tell customers to "go home and think about it for a day or two. We want you to be comfortable about your decision" or "this isn't the best time for you to buy a new car. It will be a lot better to put a few dollars into your old car. It is in good shape and there are rebates coming later in the year". In service, we do not sell the 'wallet flushes' other places push. We will fix what you brought it in for and tell you if there are other things that you should consider. We then would give you a price so you can compare prices, no hard sell. Our labor rate is below all the other shops in the area, even the independents and much of our work is brought in to be fixed after another place either couldn't fix it or said they did and didn't. My bosses do not live 'high on the hog'... heck there have been times when I would have to pick up the boss to bring him to work because the car he was driving broke down... his opinion is that if a trade-in was questionable, he would rather drive it than put a customer in it.

We have a small but very devoted customer base. We treat people the way a good business should and have often gone to bat for a customer when their car is out of warranty because we knew it was a known fault and of no fault of the customer... theirs just didn't break while still covered but it still should be covered. Most people do not know (because other dealers do not want them to know) that GM use to give service managers great leeway in extending coverage. We felt that if we treated our customers and GM fairly, that was the best for everyone. For instance, my bosses did not pay techs based on flat-rate. For those who do not know, most techs are payed on what the book says a job should take so if the book says it should take 2 hours, if you shortcut the job and do it in 1, the tech benefits but the customer may have not as good a job done but if a rusted bolt or a tricky electrical problem takes 4 hours to track down, the tech still just gets the pay for 2 hours. This puts the tech in a position where they have to worry more about the clock or their paycheck than fixing your car. Add to this that warranty works pays about about 40% less time than the book time unless you do that exact job constantly, it creates an atmosphere that pits techs against other techs, against the clock and against the customer. It is an unique situation where the harder the job is to do, the less you will make. I have talked to many techs who, after a long, hard week, takes home a check for 17 hours. To add to that situation, we also have to deal with 'second-guessing' on GM's part. We had a situation earlier in the year where a customer had an oil leak. We felt it was from the rear main seal but unfortunately, you can't see the rear main with the trans in the car. I removed the trans and could clearly see it was the seal and replaced it. GM then said that they didn't think the seal was leaking and to send them the old seal... we did and they looked at the seal and since they didn't see where it was leaking, they refused the claim even though the customer called and told them the car was fixed. That was $400 dollars out the window for the dealer but they still paid me whereas a lot of dealers charge back the tech if they do not get paid by the company.

Anyway, back to the point... GM says that dealerships cost them money, which is not the case. Dealerships pay for everything they get from GM, from special tools, franchise costs, displays, service information, signs and sales brochures... dealerships are not a major cost to the manufacturer but for some reason, they have decided that eliminating dealerships is the answer. I cannot see where making your product harder to get will improve sales but that is what they have decided. GM used the bankruptcy court to skirt state franchise laws and put privately owned dealerships out of business. Those laws were put in place to protect small businesses. We met all of their sales standards and customer satisfaction standards. They already had cut our potential by killing off Pontiac (which is another can of worms) The dealers that are being "wound down" will be allowed to stay a dealership until October 2010, if they last that long. They cannot order any new cars, return any parts, must continue to pay for the special tools to work on the vehicles they cannot order and keep up on training for cars they cannot sell and to top that, GM is now giving dealers down the road rights to the franchise you hold. We must continue to do all warranty work and abide by all the rules but they do not have to. It is like telling your wife she can still clean the house, cook and do the laundry but that you will be sleeping with someone else!

It is a sad day in this country when a poorly run company can place the blame on small businesses that have have supported them and have the government and courts side with the people who caused the problems in the first place. The American dream has been killed by General Motors and the government's hand... as for me, I will stick with my bosses whatever they decide to do because they are good people and have earned my respect, I owe them that but GM can kiss my rosy red.........

[Agent 007]

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[Stove]

I would just like to say that quality techs, service departments are what bring me to a dealership. I knew most of what you put in about how techs are paid. I recently had my duramax in for warranty headgaskets(gm wouldn't recall them, but they were revised after my motor). I met with the tech and talked about adding some headstuds since it was going to be opened up. Told the dealer they could just keep the OEM replacements. I was concerned that the tech could not make money on the job, but assured me that he had done quite a few and he could do it under hours. He did complete it under hours, but doing those studs required 3 complete tightening cycles with increase tq to stretch the new studs. I felt he did me a great job, took care of the truck, so I went back to thank him and gave him $200 bucks. He couldn't have been more thankful and I was thrilled to have a repaired truck and nice hard working guy making a little extra.

I had to go back once for an injector leaking ever so slightly. They pulled it right in and I went back and talked to the tech as he worked. Man he had some horror stories about jobs and thanked me way to much!

Good techs are hard to come by, I hope you the best of luck. I know locally palmer dodge lost its dealership. They are now a huge used lot and the service dept working as normal I believe. Service dept is a "napa" service center and they claim to be the only one like it.

GOOD LUCK!!

[gmviso]

Sorry to hear that this is affecting you.

GM made a big mistake getting into bed with the devil. I am a long time GM owner but even if they make it, and that looks doubtful I am not sure I will ever buy another vehicle from them.

Good luck!

[Bigum1969]

I'm really sorry to hear about your situation. GM used the bankruptcy to screw lots of dealers.

You sound like an ethical and honest tech. I still have faith that that means something in this country.

Good luck and God Bless.

[Indecision]

Sorry it's causing you problems, but GMs biggest problem, along with the rest of the big 3 is the UAW and guys getting paid $60 an hour for a job they shouldn't make more than $10 or $15 to do. Unskilled labor. Annies monkey with a gun can push a button.

I'm not talking about you, YOU are a skilled worker. The root of the problem is the union though, be it their greed or the big 3 letting the UAW manhandle it.

[marv]

I have lost franchises in the farm eqip industry for various reasons. From "not moving enough product" to the mfr going belly up. Haven't had a franchise in years now and don't really miss it. Don't have to put up with near as much corporate bull droppings.