I just read that General Motors is setting a plan in motion to create superstores is some major metro areas that will carry every GM brand. They are going to be called GM Collections. This is a plan that will fail. This plan will result in fewer car sales overall for GM, and will degrade the premium brands.
Think about this quick scenario. Three people each walk into three separate dealerships. One goes to a Pontiac/GMC dealership looking for a mid size, 3 row SUV. He has a chance of buying a GMC Acadia. The second guy goes to a Buick dealership looking for a mid size, 3 row SUV. He has a chance of buying a Buick Enclave. The third guy goes to a Saturn dealership looking for a mid size, 3 row SUV. He has a change of buying a Saturn Outlook.
Now you have GM Collections that has all three of those cars competing against each other for those same three buyers. Which cars will they have a chance of leaving with? What salesman is going to know the difference between the three SUVs and the hundreds of other cars available? How much extra time will a salesman have to spend on the customer looking for a mid size, 3 row SUV since they may want to see all three? How many 3 row SUVs does GM have? The three above plus the Cadillac SRX, Chevrolet TrailBlazer, GMC Envoy, GMC Envoy Denali, Chevrolet Tahoe, GMC Yukon, Chevrolet Suburban, GMC Yukon XL, GMC Yukon Denali, GMC Yukon XL Denali, Cadillac SRX, Cadillac Escalade, Cadillac Escalade ESV.
O.K. I went pretty far making my point. A lot of those SUVs are truck based, and not mid sized. But those are still a lot of SUVs for a salesman to know about. Besides, how many people looking for a Cadillac want to shop for vehicles next to the guy who what’s a basic transportation Chevrolet HHR. Can the sales staff know enough to treat the Cadillac buyer in a way that he won’t want to run to a BMW or Lexus dealership.
The point is when you have that many brands and models competing against each other in the marketplace putting them under one roof is just going to confuse customers, strain salesman’s knowledge and alienate buyers that expect premium treatment. GM Collections will fail.