This is from my anecdotal experience from when I worked for an agency that had GM as a client.
Someone may know more about the details but this is the gist:
To maintain your status as a (i.e.) Chevy dealer, the dealership is required to purchase a guaranteed amount of vehicles from GM every month. So GM sales and production are based on guaranteed dealer purchases. It was then up to the dealer to sell those cars. Thus "Inventory Liquidation Sales," "Overstock Blowout Days," "All Vehicles Must Go Sell-a-Thons" and so on because new cars coming on the lot regardless. I believe that's why when there was the government bailout, GM was forced to close so many dealerships across the country because their model created an artificially-inflated demand (not based on consumer demand.)
Not sure if this applies to non-GM dealerships, but that's a really, really, really delusional and messed-up model.
And just because it's been that way forever, doesn't mean it should stay that way forever.
I applaud Tesla for changing the selling landscape.
Someone may know more about the details but this is the gist:
To maintain your status as a (i.e.) Chevy dealer, the dealership is required to purchase a guaranteed amount of vehicles from GM every month. So GM sales and production are based on guaranteed dealer purchases. It was then up to the dealer to sell those cars. Thus "Inventory Liquidation Sales," "Overstock Blowout Days," "All Vehicles Must Go Sell-a-Thons" and so on because new cars coming on the lot regardless. I believe that's why when there was the government bailout, GM was forced to close so many dealerships across the country because their model created an artificially-inflated demand (not based on consumer demand.)
Not sure if this applies to non-GM dealerships, but that's a really, really, really delusional and messed-up model.
And just because it's been that way forever, doesn't mean it should stay that way forever.
I applaud Tesla for changing the selling landscape.




