The holding company concept applied to multiple automobile dealerships

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Gunn, Henry Guynn

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Ownership and operation of more than one automobile dealership and the resulting possible financial rewards have been made difficult to attain in recent years. This difficulty has been especially harmful to those dealers in areas of population which are considerably less dense than the metropolitan areas. These smaller dealers cannot amass the large sales and profit potential available to the dealers in the metropolitan areas. It can then be to their benefit to develop some arrangement in which they can circumvent the problems and obstacles which have arisen to block a multiple dealership operation. This report will deal with these problems and suggest a possible solution to them. The situation dealt with will be limited to a small business application. It will be pointed toward the ownership of several dealerships which would not be located in metropolitan areas. Further it will be limited to General Motors Corporation dealerships although it could be applied to others. The problems which will be covered include those requirements and regulations imposed by General Motors and those problems which particularly affect the small business entity