GM's Dealer Network

[ProTouring442]

I have heard many a person pontificate that GM needs to shrink its dealer network as it's costing them money. My question is, as the dealers are not held by GM, why? Why does it cost them money? Why do they need fewer dealers?

Shiny Side Up!
Bill

[96z28ss]

My GF's dad owns a GM brand dealership. He tells me about how much money GM bills him for stuff that he doesn't need. They make alot of money off dealerships.
The only thing GM would save money on is they give credits back on the advertising dollars they spend. For local papers, autotrader, and radio spots.
Even then its not completly paying for them. But if you get rid of some dealerships its less money going out.