01-12-2009, 02:55 PM | #1 |
Allocation question
I'm confused about the allocation situation.
There are two seemingly different explanations to this that people have posted: 1. Allocations are determined by federal and state laws that are far too complex for mere mortals to understand, so don't ask. But the key thing is, it's government-regulated, so GM can't circumvent it. 2. Allocations are based on a combination of the number of cars each dealer sold during some period of time (in 2008, 07?) and the number of Mustangs sold in that dealer's zip code divided by the square root of fbodfather's birthday. But the key points here is it's totally up to GM. Can someone kindly explain it once and for all? THANKS! |
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01-12-2009, 03:22 PM | #2 |
Drives: 2002 firehawk.....missing 02CE Join Date: Sep 2008
Location: Midland MI/salamanca NY
Posts: 360
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1. Allocations are determined by federal and state laws that are far too complex for mere mortals to understand, so don't ask. But the key thing is, it's government-regulated, so GM can't circumvent it.
Yes this is for the allocation process. for example Im pretty sure scott mentioned some honda workers who went to jail. What they were doing was makeing dealers bribe them in order to get the cars they wanted. so who ever had the cash got what ever they wanted and the dealers who either didnt have the money or had the morals to not pay bribes to get cars were screwed. 2. Allocations are based on a combination of the number of cars each dealer sold during some period of time (in 2008, 07?) and the number of Mustangs sold in that dealer's zip code divided by the square root of fbodfather's birthday. But the key points here is it's totally up to GM. their are alot of things that go in to an individual dealers allocation of cars but yeah that pretty much sums it up. hope this help |
01-12-2009, 04:16 PM | #3 |
Account Suspended
Drives: 2010 Camaro 2SS/RS Join Date: Apr 2008
Location: New York
Posts: 3,746
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You see... allocations breed corruption and are unfair to small dealers.
There must be a way around it. |
01-12-2009, 04:29 PM | #4 |
Drives: fanboys and ass kissers crazy. Join Date: May 2008
Location: Ottawa, Ontario
Posts: 7,280
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For our Canadian members, this process is completely different up here. Allocation is not controlled by the state. Sell whatever you want, wherever you want. Allocation is controlled by GM and for the Camaro, they used a formula that included dealer performance and mustang sales in the region.
GM (and everyone else) does tend to dangle carrots in front of dealers noses. My buddy has a GM dealership and when the SUV craze was going on, he had to take an Aztec off GM's hands if he wanted a Hummer to sell. He was making good money on the Hummer but losing on the Aztec. Hopefully this process at GM can be improved with the transition to flex plants so that GM can respond to market demand more accurately. Build what they want to buy seems like an easy thing but it's very difficult to do with so many factors involved. Also, things here are controlled by GM of Canada which is managed inside GM just like a seperate business. It has a lot of freedom to do it's own thing. For example, we're still waiting for our letters...
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01-12-2009, 04:45 PM | #5 | |
Quote:
Perhaps if I ask the question a different way: Is the number of Camaros each dealer gets determined by a formula mandated by the feds, or by a formula GM came up with? |
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01-12-2009, 04:48 PM | #6 |
Drives: 2002 firehawk.....missing 02CE Join Date: Sep 2008
Location: Midland MI/salamanca NY
Posts: 360
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the second one. the gov says GM has to do that and not just say my favorite dealer will get all the camaros and the rest are SOL. To directly answer yor question the number of camaros each dealer gets is determined by a formula GM came up with.
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01-12-2009, 07:39 PM | #7 |
Drives: Tundra Join Date: Sep 2008
Location: Dallas
Posts: 46
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Most allocations sytems are based on "the more you sell, the more you get" philosophy. It has to do with turn rates, day supply, registrations in PMA (primary marketing area) etc.
Most manufacturers distribute these cars that way, unless they are building to many (as most manufacturers have been of late) then they are forcing inventory into dealers lots. But basically the government has nothing to do with allocations, they just have federal laws about who is paying what for each vehicles as to not allow on dealership to "own" a similar vehicle for less than another giving them a competetive edge. |
01-12-2009, 07:54 PM | #8 |
Geek
Drives: IOM 2010 Camaro 2SS Join Date: Oct 2008
Location: Orlando
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The Camaro allocations were based on sales volume for the dealer as well as Mustang registrations in the area.
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01-12-2009, 08:08 PM | #9 |
Drives: Tundra Join Date: Sep 2008
Location: Dallas
Posts: 46
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when you say sales volume are you talking about overall sales or a specific model line or category such as coupe seadn etc.
with all due respect, I have been in the car business a long time and I have yet to see an allocation system that didn't look into, days suupply, turn rates, etc. Even if it was a launch cycle. The mustang registrations is an interesting approach though. |
01-12-2009, 08:16 PM | #10 | |
Geek
Drives: IOM 2010 Camaro 2SS Join Date: Oct 2008
Location: Orlando
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I don't know all the details but from the ordering workbook....
Quote:
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01-12-2009, 08:21 PM | #11 |
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As I understand it my Dealer has a total allocation of 7 cars. I am number 5 of the 7, all are SSs. Will everyone get ther car by October or will they have to use their allocations for V6s as well?
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01-13-2009, 12:17 AM | #12 |
2010 SIM Beige RS 6M
Drives: SIM RS 6M 66 Corvair Silverado LTZ Join Date: Oct 2008
Location: Kamloops,British Columbia
Posts: 4,677
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There are a lot of people who think you put the 1st can at the curb.
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01-13-2009, 01:24 AM | #13 |
Blessed
Drives: 2013 Sonic RS MT Join Date: Dec 2007
Location: Saint Augustine FL
Posts: 28,444
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Not the place for dealers to argue.
If you have a problem keep it private. I'm sure you know how to use a phone. And just so everyone is clear, We are going to consider what Fbodfather posts here as the closest thing to the truth. If you would like to disagree then I also suggest you take it up with him. We will not tolerate Bickering between dealers that should be showing professionalism vice childish bickering. Lets all move on.
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Click image to see build thread. PQ - "the love of cars. It's a boys first step toward manhood and a mans last hold on boyhood." Fbodfather - "We do not want to use the Z28 moniker on a car that does not deserve this hallowed name." The_Blur - "Let's not confuse competitors with equals." |
01-13-2009, 11:17 AM | #14 | |
Mr. Chevrolet
Drives: 2007 Tahoe Z71, 2009 Silverado Join Date: Nov 2008
Location: Tacoma, Wa
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Did I do a bad thing Boss? I was just fed up with having false prophets preach to the masses. Sorry to anyone I may have offended, including another dealer.
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