@hawkeye10,
hawkeye10 wrote: The dealer network was going to shrink anyways, but the manufactures are forcing the issue so that 1) they can cut faster than the marketplace would have 2) they can cut deeper than the market place would have and 3) they can pick the winners and losers instead of letting the marketplace do so.
I think thats a mistake, hawkeye. I think its better to let the marketplace do the cutting. After all, if the dealer makes money, even if it isn't much, why cut him? That seems foolish. I can cite many examples, but a simple one is loss leaders. Loss leaders are good to have in a store to draw customers. And perhaps marginal dealers are not a bad deal simply to maintain a customer base, geographically. Another example, airlines, a few routes may lose money, but they might be important to feed passengers into flights that do make money.
I used to work for a corporation, and the first knee jerk reaction they have is to cut down at the bottom first, but what really needed cutting was up the ladder a ways, overloaded upper and middle management. I know they may have done some of this, but is it enough? The dealers are the bread and butter of the company, the skeleton or the bone structure of the company, its where the company meets the public, and that is the most critical of all. If you gut that part of the company, you risk doing alot of damage. I still think the problem lies in manufacturing and management, not sales. The sales part of it can be reformed, restructured, but I think gutting it is a huge mistake. I could be wrong.