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Old 01-12-2009, 03:55 PM   #1
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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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Old 01-12-2009, 04:22 PM   #2
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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
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Old 01-12-2009, 05:16 PM   #3
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You see... allocations breed corruption and are unfair to small dealers.

There must be a way around it.
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Old 01-12-2009, 05:29 PM   #4
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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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Old 01-12-2009, 05:45 PM   #5
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Quote:
Originally Posted by kylepo View Post
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
Not trying to be difficult, but no, it doesn't help at all.

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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Old 01-12-2009, 05:48 PM   #6
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Quote:
Originally Posted by heavyt100 View Post
Not trying to be difficult, but no, it doesn't help at all.

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?
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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Old 01-12-2009, 08:39 PM   #7
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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.
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Old 01-12-2009, 08:54 PM   #8
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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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Old 01-12-2009, 09:08 PM   #9
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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.
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Old 01-12-2009, 09:16 PM   #10
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I don't know all the details but from the ordering workbook....
Quote:
The production guide was developed based on two factors: (1) On your Chevrolet retail sales (both cars and trucks) over the twelve months ending August 2008 ; and (2) Mustang registrations for the twelve months ending June 2008 in your DMA. The guide covers anticipated Camaro Coupe production from the start of regular production, currently scheduled for mid-February through approximately Q3 2009.
note: "mid-February" is now "mid-March".
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Old 01-12-2009, 09:21 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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Old 01-13-2009, 01:17 AM   #12
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There are a lot of people who think you put the 1st can at the curb.
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Old 01-13-2009, 02:24 AM   #13
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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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Old 01-13-2009, 12:17 PM   #14
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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.



Quote:
Originally Posted by gtahvit View Post
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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Old 01-13-2009, 12:20 PM   #15
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It's all good.

We just want to try and calm the waters as much as possible.

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