My Fire

Ð'* The heart of the franchise system is the selling agreement

Ð'* From the 1920's through the 1094's GM was the catalyst for change in dealer relations

Ð'* Alfred Sloan recognized the importance of his company's dealer organization and was determined to nurture it.

o Visited dealerships to get a personal view of the sales climate

Ð'* The Great WARS

 Built Aircraft engines during WWI

Ð'* Regarded as a side line

 WWI 35 millionÐ'...WWII 12 billion

Ð'* Helped because thousands of dealerships didn't survive the war

o 20.6% decline

Ð'* Franchise System

o The industry adopted the franchise system in the 1920s

 Sloan explained "automakers could not, without great difficulty, have undertaken to merchandise their own product."

Ð'* Unlike ford it was against the policy of GM to require dealers to take cars in excess of what they properly should take

o Ford's crossroads policy

 Crammed cars down dealers throats

 Ford had a bad reputation in its relations with its dealer, for it had always ridden them hard.

Ð'* GM very liberal attitude toward and put less press on dealers

o Sloan "a necessary condition for the progress and stability of