DETROIT — General Motors is working with dealers to improve retailers' profits in 2008.
Dealers say that in early January, GM will announce policy changes to improve profitability. The company would not confirm a timetable. Some key areas under study include:
-- Improving dealer cash flow.
-- Improving dealers' fixed operations, such as service and parts.
-- Increasing sales volume per store.
-- Assisting in floorplan expenses.
GM has formed a profitability subcommittee of its National Dealer Council.
One of its recommendations is that GM form a Dealer Profitability Department within its vehicle sales, service and marketing unit, says Mark LaNeve, GM's vice president of vehicle sales, service and marketing.
That department would be headed by Bill Powell, GM's vice president of industry-dealer affairs.
"We are working on helping dealer cash flow, operations, fixed (operations), facility requirements, throughput, et cetera," LaNeve wrote in an e-mail.