The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-31
NEWS HIGHLIGHTS
PROBLEMS OF
AUTO DEALERS
BEING STUDIED
General Motors Committee
Considering Various
Phases.

r. H. Grant, vice president and
general sales manager of General
Motors Corporation, is quoted in the
National Automobile Dealers bulle-
tin now being mailed to the 10000
dealers of the country, as stating
that General Motors Corporation
has started a systematic study by
the best talent of the corporation
in a determined effort to solve the
various phases Of dealer problems.
These problems were presented to
all manufacturers by National Auto
mobile Dealers Association recently
on behalf of the dealer body. Ac-
companying them were recommend
ations for their correction, particu-
larly as a rider" to the average
existing dealer franchise contract.
D. S. Eddins, president of Ply
mouth Motor Company, also is
quoted as stating that his COM
pany is working on the problem,
stating Il feel that we should not
be discouraged" and that I'VE
either have to make good or go
down." in perfecting sound re-
failing business, and I'VE are going
to write a ticket that is going to
keep the dealers and us from going
down"
Mr.. Grant is quoted in part as
follows;
New Group Acting
"Out of the coming in and going
out of the code, and out Of other in
f1uences that have been brought to
bear from time to time upon the
automobile industry, the General
Motors Corporation is convinced
that the distributive problems of the
business must be given the same
time and attention, by the best
talent in the business, that the
manufacturing and engineering ends
IF the business have necessarily
Leen given over the last Is years"
He is quoted as saying that Gen
eral Motors has set UP what is called
a Distributive Group of the Execu-
tive Committee of the Corporation,
headed by Alfred P. Sloan Jr., presi-
dent, and which includes Donaldson
Brown, chairman of the financial
committee; Albert Bradley, one of
the vice presidents: L. B. Fisher.
formerly with Cadillac; w. S. Knud-
sen, member of the executive COM
mittee, Mr.. Grant and others.
The group has deliberately
planned, it is stated, to spend three
days every two weeks in handling
subjects such as those the dealers
association claims should be cor
rected in more equitable franchise
contracts.
Discusses Problems
The Grant statement, made in a
recent address to a dealers aSsocia-
ton, lists the problems that he
said predominated, in the insist
ence with which the various men,
bers put on the table the things
that they have in their minds"
First was gross profit condition of
dealers; second, used car losses;
third, number of dealers in the ter
ritory; fourth, sales efficiency in |
multiplied dealer cities, and fifth, eff
feet of cross-selling in open terri
tory
AS to the first problem, gross
profit on new cars, he said unless |
the losses on used cars are stimuli |
taneously dealt with, the gross profit |
can not be tackled.
Regarding the used car problem, |
he referred to the associations Of
fetal Guide that was inaugurated |
under the code, and is continued to |
be published monthly to supply the
trade with true market valuations
on used cars. Nov, in regard to |
the Used Car Guide" he is quoted, |
lit is our opinion that guide ought |
to be kept in the picture"
On what he called "a very i'm
portant question" the allocating of |
dealers, he stated he has a staff of |
men trained for the work who are
listing the various cities of the
country from the standpoint of the
potential, how much overhead, and
how many franchises should be al
lowed to the neighborhood. He said,
I'VE have already done Boston, De-
troit, Buffalo and st. Louis