Thursday, June 7, 2012

Spending Millions on Mullions

In my last update, I indicated that I had asked General Motors for three exceptions on my EBE plan. I asked for an exception on the gray tile that GM required when I built versus the gray tile they are now asking for. The actual response from the "Ivory Tower" was "Request denied because tile appears to be too dark compared to program spec tiles". My zone manager told me that he convinced "them" to grant the tile exception request though I must sign a letter that, in part, specifies: 
"However, we anticipate this tile may need to be replaced 5-10 years in the future due to wear, overall condition, etc. If and when Chevrolet deems the tile condition is no longer acceptable, Dealer agrees to replace the existing tile with the program tile. Please counter-sign below to affirm you understand and accept this conditional exception approval."
Well, I have not signed the letter (surprise, surprise!). I'm not sure that automobile dealerships will even have showrooms in 5-10 years. Ask executives at Best Buy or Barnes & Noble what color their floor covering will be in 5-10 years. The bricks and mortar business model for all retail space is untenable. That is part of the problem with the GM EBE program - no consideration has been given to what the dealership will look like and how it will function in 5-10 years. Shouldn't we be investing in plans that move us that direction?!

I asked for an exception on the the window frames that GM required in their Image 2000 program (and for which I paid about 30% more money) when I built the facility. They are currently a "General Motors blue", but now GM wants a silver color. Their response was "Request denied, blue mullions are too far a departure from the required silver mullions. Mullions can be painted or capped to meet the color requirements."

 That tile appears to be too dark compared to program spec tiles!!!
I know of a dealer who got an exception for BROWN mullions! Apparently "General Motors blue" mullions are a more radical departure from the color scheme than is the BROWN!!! This brings to light a deeper problem with the program. It would seem that there should be some consistency with the exceptions. It is either the right color or it isn't. If it isn't, then exceptions will be granted for all or none. There is a lack of transparency that breeds mistrust. I have re-sent that request for exception, letting them know that I was aware of the dealer with brown mullions. I am looking forward to their response!



My third exception request was regarding this whole notion of my office being a customer "touch point" and thus requiring the color scheme, wall prints and furniture set forth by GM. I received a familiar response: "Request denied. Dealers office located right off showroom floor considered customer touch point. Car front desk not in line with furniture spec." (Some of my friends were very nervous to hear that GM considered my office a touch point! ;o)



Let me translate the corporate speak in that response: "This (1964 Chevrolet Impala) desk is too unique for any dealership. We want "cookie cutter" dealerships that completely remove any sense of dealer branding. If customers saw this desk, they might remember it and the dealership in which it sat. We want the boring furniture and wall prints we have chosen for EVERY Chevrolet store in America!"

Glenn Mercer, in NADA Facility Image Study presentation, said that GM boastfully says they are approving approximately 85% of the exception requests. If that is so (and my case would show that to be quite high), perhaps the standards are a bit too stringent. Perhaps if they would relax their standards some, this whole back and forth game could be avoided. But then they would not have a stranglehold on the power, would they?

More to come...




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