GM Just DITCHED Dealers & SHOCKED The Entire Car Industry! | HUGE News!

In this video, we look at GM CEO Mary Barra's stunning announcement, which reveals a radical new approach for General Motors: a shift away from the traditional dealership model. This decision represents a fundamental shift in the automobile industry, demonstrating GM's commitment to growing with the times and reacting to changing consumer demands. As GM embarks on this transformative journey, the consequences for automobile purchasers, dealers, and the overall market are enormous.
Mary Barra's announcement underscores GM's unique strategy for remaining competitive in a rapidly changing market. By abandoning the dealership model, GM hopes to streamline operations, cut costs, and improve the consumer purchasing experience. This plan puts GM in direct conflict with industry disruptors such as Tesla, which has successfully established a direct-to-consumer sales strategy. As the automotive landscape changes, GM's competitors, including Ford, Toyota, and Volkswagen, will definitely be looking closely to see how this strategy affects GM's market position and overall sales performance.
This video delves into GM's decision, evaluating the possible benefits and pitfalls of this new strategy. We look at how this strategy fits into the expanding trend of digital transformation in the automotive industry, where online sales and virtual showrooms are becoming more prevalent. We also address the likely reactions of traditional dealerships, as well as the potential rippling effects on the automotive industry as a whole, such as changes in market dynamics and customer expectations.
Join us as we examine the strategic ramifications of GM's exit from the dealership model within the larger context of the automotive industry's transformation. With insights from industry experts and comparisons to other major manufacturers' approaches, this video provides a comprehensive look at how GM's creative strategy has the potential to transform the future of car purchase and establish new standards for competitors worldwide. Don't miss this critical examination of one of the most major changes in the automotive industry in recent years.

[@clarenceflinn5561]

Won't change pricing. Just raise profits.

[@jerryt87]

Exactly. No cost savings will be passed onto customers at all.

[@dandarden7788]

Don't look for price break.

[@joeblow3939]

If I get ride of all of the dealerships, I can continue taking $29,000,000.00 annual salary.

[@rayfridley6649]

GM is not alone. It has been reported recently that Ford may be doing the same.

[@terrymcdonald3388]

I would not buy a vehicle even when it is new without driving one first. I may not like the way it drives or handles. Pictures do not show much. I want to feel how much power the vehicle has too. There doesn't seem to be a way of test driving a vehicle that can cost up to #100,000 or more.

[@midnight4109]

Tesla has always offered me test drives. Their centers have demo models without having franchised dealerships.

[@edgarnewberry-cw4ld]

For what they get for this shiny scrap metal, you would think the onboard computer would include a self diagnostic program that shows codes.

[@clintrohman4403]

All this does is turn it into a build to purchase order model like in Europe. Keeps the purchase price high as you do not have lots of cars to get discounts on when they aren’t selling. Also reduces competition as then the price across the country will be similar. The sales team in a dealership turn into configuration engineers… Next, the most important thing to keep in mind is that the days then of getting out of bed and coming home with a new car that night is gone. Add in if you wreck your car and need to buy a new car then you’re screwed as you will wait 3-6 -12 months for delivery. This model then forces higher insurance costs on you as you will need supplemental coverage to pay for rentals while you also wait for a new car to arrive as you totaled your car in an accident. It also sucks as you can’t test drive as many models as dealerships don’t stock test drive cars. They only stock loaner/rentals.

[@jeannewright3027]

I researched this…..this is not current information and probably goes back months in talking on the Buick line. I am disappointed tgat this was presented as current news within last couple days.

[@alecfromminnenowhere2089]

There is a glimmer of hope that GM will see what the buyers want.

[@martinphillips4567]

This is a dumb & desperate move by General Motors and other car manufacturers , I as a consumer Don’t see how this benefits me.

[@midnight4109]

It eliminates some of the cost of putting cars in consumer's driveways by streamlining the process.

[@jerryt87]

It doesn't. It just means that the manufacturer will now get all the profit. There will be no price decreases passed onto us.

[@midnight4109]

@@jerryt87 We will see. One problem with the movement to EVs is the expense of the vehicles. High end models are understandably profitable for the manufacturers who also believe that it is necessary to enter into lower end markets where profit margins are smaller, and enabling a larger customer base. There is motivation to lower prices on the more affordable models in order to include more potential customers.

[@debbiebermudez5890]

Mr. B. Here ! 🍩☕️👀😎👍. Ok so who will perform warranty work or recalls ! So factory own dealers ? I do not care what they do, the industry has to many regulations anyway ! Dealers have a large investment in this business model ! When I see it I’ll believe it ! 👀😎👍

[@michaelrussell3837]

Insurance premiums sky rocketing with GM Super Cruise self driving. Anyone else feeling the gouge?

[@user-td7nr4ef2v]

I feel this will fail down the road

[@paulerickson1906]

Until the car companies make their products to be repaired more easily by their owners. Get rid of the maze of hoops you have to go through just to find what is wrong with your car. Make them easier to diagnose. Simplify the computer systems to be more owner accessible along with the pertinent information needed. Eg, wiring diagrams, up to date service info, parts availability. If this is not done they can keep their products! I will wait for a company that will listen to what I want. They can make the vehicles more user friendly and reliable with simpler more robust systems running everything. I don't need a computer to do all the operating of the car for me. I have driven long enough to know there is a better, simpler, more reliable way to make cars.

[@DanGilliland-pi4vh]

I couldn't agree 100% agree more, today's vehicles, the build quality way down,too much complicated tech and electrical crap to go wrong and GROSSLY overpriced. Unless they go back to building simple reliable affordable cars the way did 20 years ago,we are done with new car payments. Never again

[@paulerickson1906]

@@DanGilliland-pi4vh Right on!

[@Mr00934]

mary mary mary where is the $5000 dollar pickup?

[@davidlefranc6240]

In China!

[@kazoo864]

Dealerships shot themselves by huge prices over MSRP. The customer continues to ride under the bus!

[@kazoo864]

Dealerships shot themselves by huge prices over MSRP. The customer continues to ride under the bus!

[@jerryt87]

@@kazoo864 And this won't change a damn thing. We'll just be getting shafted direct from the manufacturer.

[@timheersma4708]

This too shall fail...like $100K+ vehicles.

[@davidlefranc6240]

Sounds like a decent plan .

[@56BIGM]

i'd never again buy gm, but this sounds to me like a really dumb idea

[@terryreese7331]

Wait, there was push back on Tesla for doing this very thing? Tesla's direct-to-consumer (D2C) sales model faced challenges from dealership associations in various states, who argued that Tesla is violating dealership franchise laws. As of April 2024, 48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers. For example, New Jersey officials have passed a regulation that prevents automakers like Tesla from selling directly to consumers, and Florida Governor Ron DeSantis banned direct-to-consumer car sales in the state, with the exception of Tesla and EV startups that never had franchised dealers. Tesla has challenged these laws, including suing Louisiana over its law that bars the company from selling directly to consumers. As of April 2024, North Carolina and New Hampshire have sided with Tesla, while Virginia and Texas have sided with dealers. so, how are they going to get this one exactly?

[@midnight4109]

What you suggest has been tried and tested successfully by Tesla where showrooms and service centers replace franchised dealers where the manufacturer owns the facilities. It certainly has its advantages.

[@user-jn9gv9ve6e]

unless it has changed i believe in michigan to buy a new car you have to go through a dealer. other states have the same rule.

[@clarenceflinn5561]

Not electric vehicles.

[@jerryt87]

Remember folks. They will use your data to "help" you.

[@Mr00934]

where is the 5k pickup truck?

[@istvantoppler5999]

SO the customers are now going to bevroyally screwed directly from the factory with absolutely zero personal contacts. To start, we shall see what happens to pricing, then how are they going to handle service, warranty, delivery prep.

[@jerryt87]

Yep. We will now be F**ked direct, lol.

[@m.hughes2521]

Mary Barra should seek marketing advice from Bud Light.

[@winkdinkerson7190]

GM wants to heighten the buyers purchase experience - stop making overpriced junk! Let’s start there!

[@jerrycroner9221]

I have owned at least 6 new gm trucks & suv’s. After the issues with this newest one, it is extremely unlikely i will ever buy another. Junk. I am currently shopping for a new suv. It will not be a gm for sure.

[@TeenaParker-ev8ld]

Put more people out of work and no money and hire money for investment

[@user-is6cs2nu5s]

Good cuz they don't even know what there selling .and Max up prices .no one wants to go to dealership due to that .

[@Invisibility397]

CEO of GM ... she yeah... she makes 3,000 % over the average GM employees yet when is the last time auto manufacturing (big 3) invested in their company... tax payer money bailed them out twice...

[@stevenweiss2148]

Mary Barra can not do this. Jim Farley said the same thing Its bs

[@mikesmith135]

My worst automotive experience was when GM required me to use a dealer for repair. I made a decision to never buy another vehicle that prevented me from using a an independent repair shop. I cringed when I heard the announcer state that GM would be turning dealerships into maintenance facilities.

[@allofus5604]

If you buy a new vehicle that's under a warranty, then yes you go to the dealer for repairs. If it's out of warranty go wherever you want.

[@user-jp9tk6qk9g]

This wont work

[@6ftfox]

That will never happen ever wishful thinking, though Mary Barra will be long gone before that happens

[@Den-ml7zg]

No more dealer markups? dealers and their service departments are straight up crooks.

[@CryptoPerunX]

GM is going broke

[@dandarden7788]

GM sux!

[@DanGilliland-pi4vh]

I bet they are going bankrupt . They are completely disconnected from the reality of the average customer. There only chance:go back to basic affordable cars cars the way they were built 20 years ago

[@clintrohman4403]

All this does is turn it into a build to purchase order model like in Europe. Keeps the purchase price high as you do not have lots of cars to get discounts on when they aren’t selling. Also reduces competition as then the price across the country will be similar. The sales team in a dealership turn into configuration engineers… Next, the most important thing to keep in mind is that the days then of getting out of bed and coming home with a new car that night is gone. Add in if you wreck your car and need to buy a new car then you’re screwed as you will wait 3-6 -12 months for delivery. This model then forces higher insurance costs on you as you will need supplemental coverage to pay for rentals while you also wait for a new car to arrive as you totaled your car in an accident. It also sucks as you can’t test drive as many models as dealerships don’t stock test drive cars. They only stock loaner/rentals.