General Motors Europe wants to double dealer profits within the next three years in some European markets. The financial incentives – bigger bonuses, splitting dealer improvement costs and sharing consumer incentive programs – are for all Opel, Vauxhall, Saab and Chevrolet dealers in Europe, reported Automotive News Europe (ANE).
Go deeper with GlobalData
“We have a vision of improving dealer profitability,” David Kirke, GM Europe executive director of European sales operations, told ANE. “We have to make sure our network is sustainable.”
For example in Germany GME intends to boost dealer net profit to 2% from 1.1% last year. For GME it is important to improve profitability. Last year, two GM dealers in Germany and one in France declared insolvency. In the first half this year, so did three Netherlands dealers.
