DETROIT -- General Motors is preparing to make public a plan to encourage the creation of superstores in major metro areas that would carry every GM brand.

GM is trying to whittle down the number of dealerships in certain regions, said Mark LaNeve, GM's vice president of vehicle sales, service and marketing. "We've got a big effort going on in the major markets," LaNeve told Automotive News earlier this week.

The big stores — which LaNeve dubbed "GM Collections" — would allow GM to maintain a high profile in cities where real estate is costly. In many cities, domestic-brand dealers are selling because the real estate is more valuable than the franchise.

To create enough showroom space for extra franchises, dealers would be encouraged to move service and parts operations to satellite centers.

The superstore approach likely would make GM brands more attractive to big dealer groups such as AutoNation Inc. and Sonic Automotive Inc. The big stores also would help GM organize its dealerships around four brand groups:

1. Chevrolet

2. Buick-Pontiac-GMC

3. Saturn

4. Cadillac-Hummer-Saab.

Results are mixed

Progress has been spotty. General Motors has consolidated a large number of Buick, Pontiac and GMC franchises. But it has not aggressively pursued the consolidation of Cadillac, Hummer and Saab franchises.

At any rate, LaNeve emphasized that GM is sticking with the plan.

"We're not changing from four channels to some other number," he said. "It's more about size and structure. How big does a dealership need to be? Does service need to be right on the site? Can we help them in areas of their IT infrastructure and other things?"

LaNeve did not indicate which cities would get superstores first. An informed source says GM is evaluating all major markets.

One example of how the process might work: With GM's help, AutoNation opened a GM superstore last November in Fort Lauderdale, Fla. The dealer group purchased a store that carried Buick, Pontiac, GMC and Saturn, then transferred those franchises to its own store, Maroone Chevrolet.

GM played the role of matchmaker, helping the buyer and seller negotiate a deal.

"It was good for everybody," says AutoNation spokesman Marc Cannon.

Mixed reaction

Dealers contacted by Automotive News last week had a mixed reaction. One dealer who asked not to be identified predicted that off-site service centers would alienate customers.

The dealer also predicted that superstores would allow big dealership groups to dominate metro markets, hurting family-owned dealerships.

But a prominent Los Angeles dealer — Howard Drake of Casa de Cadillac in Sherwood Oaks — called the idea "powerful." A few years ago, Drake moved his body shop to a lower-rent area to make room for a Hummer and Subaru showroom.

"I didn't lose a lick of business by moving the body shop," Drake says. "You see that already happening in Beverly Hills — a couple of stores there have off-site service areas."

The superstore proposal makes sense for urban dealerships, Drake says. "It's one more way for (LaNeve) to keep the dealer body together in tough times. General Motors is trying to protect its urban locations, because if they lose that urban representation, they'll likely never get it back." c