1. So what's life like for a GM dealer these days?
Well, being in Edmonton, we're a little insulated from the rest of the country because of the Alberta economy. We've had to tighten our belts and reduce costs, but we're back to 2003 levels of business. We sell 700 to 800 new vehicles a year, and 500 to 600 on the fleet side. Then we sell another 500 used. Our biggest seller is still the GMC Sierra pickup.
2. What was it like when GM notified almost 300 dealerships in May that they'd be shut down?
We were notified the day before that there'd be letters coming out. I didn't say anything to staff-no sense worrying them about something they couldn't do anything about. It was my sleepless night. ...I don't know where you cross the line from confidence to arrogance, but I was personally very, very confident. We surpass every metric GM measures us by: sales volume, market share, customer satisfaction. But I've talked to other dealers [who are shutting down]one in rural Ontario will maintain his facility for used vehicles, a body shop and service. He's one of the fortunate ones. Other dealers I know are big-city, and that's all their building is- single purpose. On average, with land, building, equipment and furnishings, you're looking at an $18-million investment, easy-if $18 million can be easy.
3. What would have been the impact if you were shut down?
A dealership is a very big small business. We have 100 employees; annual payroll is close to $4 million. Most people just don't realize how well-paid a good technician is. The contributions back to the community are almost immeasurable-direct funding for this team, this organization, this golf tournament. I don't know one dealer who doesn't sit on at least one fundraising board. Advertising is another huge area. I think newspapers are going to have a tremendous revenue loss.
4. What does GM need to win back market share?
Outstanding product. We're giving up Pontiac, but more resources can now be put into GMC and Buick, with greater differentiation between the brands. The Buick Enclave is an example of an outstanding product. We have Mercedes-Benzes being traded in for the Enclave crossover-these are the types of owners who are giving Buick a second look.
5. What's your plan now?
We'll pick up vehicle and parts inventory from dealers who are closing. We'll also be looking for the best staff possible. We're going to be seeing a sales increase-no doubt there will be tremendous bargains on Pontiacs. Over the next six months to a year, once the dust settles, we should be growing. Car dealers are naturally optimistic people. You gotta be, in this crazy business. And I really can't imagine too much more bad news.
-Interview by Dawn Calleja