Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 12 pages in length and its case teaching package is 6 pages.

Abstract

Although once a formidable weapon for selling its cars, GM's dealer network is too large to support its failing sales, and many dealers are situated in declining metropolitan areas. Moreover, many of the sales techniques employed by them make for an unsatisfactory car-buying experience. Ron Zarella's Project 2000 is aimed at correcting these problems, but deep-seated franchisee interests must be accommodated while various divisions, primarily Oldsmobile, Buick, and an announced Pontiac-GMC selling division merger, must combine and rearrange themselves for greater sales efficiencies in light of the rise of super-store car retailers.

Linkages to Textbooks or Journal Articles/Fit Within a Course

For use by marketing majors in a marketing management course at either the undergraduate or graduate level. It can be used as a "stand-alone" case dealing with GM's problems with retailing its automobiles and light trucks, given the company's falling sales and the need to improve buyer's satisfaction with the purchasing experience. Or it can be used as part of a continuing or semester-long series of cases dealing with General Motors. If the latter teaching strategy is employed, "Right-Sizing GM's Dealer Network" should follow the use of the introductory case, GM Tries to Sharpen its Car Images and the follow-up case, Pontiac Goes Back to the Future, which covers the specific use of a brand manager team to design the new Grand Prix.

Study Questions

1. What forces, pressures and trends have caused GM's once-vaunted dealer network to now be so dysfunctional?
2. Ron Zarella is attempting to "Saturnize" the sales techniques used by various GM dealer franchises. What factors in Saturn's history allowed it to revolutionize how cars are sold in America? Using the Oldsmobile Division's experience with Saturnizing, what historical factors will make it difficult to graft Saturn's sales techniques onto GM's other divisions?
3. The rise of the superstore used-car retailers such as CarMax, AutoNation and Car Choice has been phenomenal. What threats do they pose to the traditional franchised automobile dealership?
4. As GM implements Project 2000 at the dealer level, what weapons does it have with which to bring about the changes it desires? What weapons do those dealers who do not want to change have at their disposal? To what degree does the case of Dick Gidron's lawsuit over his Cadillac dealership termination represent the types of problems with which GM will have to deal?
5. In creating merged Pontiac-GMC dealerships Ron Zarella will be targeting Chevrolet's trucks towards rural markets and the GMC trucks toward metropolitan markets to position them against those offered by Acura, BMW, Jaguar, Infiniti, Lexus, Lincoln and Mercedes-Benz. What risks are associated with this strategy?

The downloadable file for this case is in Microsoft® Word 97 for Windows®.

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