Relieve logistics pressure General Motors allows dealers to pick up vehicles from the factory and provides incentives

General Motors eases logistics pressure by allowing dealers to pick up vehicles directly from the factory and offering incentives

【Phoneauto News】With the end of the global pandemic, the supply chain issues of car manufacturers have improved. However, in the United States, General Motors (GM) seems to still face a shortage of transportation capacity. In order to alleviate the impact of this situation on car sales, GM recently announced a new method to solve the logistics problem.

In order to address the contradiction of increasing new cars from the factory and dealers and consumers not being able to get the cars, GM has recently introduced a new policy that allows dealers to pick up cars from the factory themselves and provides certain rewards to dealers who offer door-to-door delivery. This policy has achieved good results since its implementation. On the one hand, dealers solve the problem of waiting for cars and also receive related rewards, while GM effectively solves the logistics problem.

Scott Bell, Vice President of Chevrolet, said to reporters, “When a new car is produced in the factory, it occupies a parking space in the factory. If it cannot be transported away, it will affect the subsequent production. Fortunately, the arrival of dealers solves this problem. They take away the piled-up vehicles, which has a positive impact on our future production capacity.”

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If the distance traveled by dealers to the factory exceeds 800 miles (1287 kilometers), they can receive a “trouble fee” of up to $1050. However, for distances less than 100 miles (161 kilometers), the fee is only $225. At the same time, the cost for dealers to go to the vehicle distribution center operated by the railway starts at only $100. These prices are not far from the prices GM pays to deliver new cars with its logistics partners.

Buick GMC Vice President Duncan Aldred said, “Our approach is very creative and truly rethinks how to optimize this. We realize that our dealer network is very strong. We have successfully mobilized them, which is a huge complement for us. This will provide real help in maintaining the flow of logistics.” Since the introduction of this measure, General Motors estimates that more than 3,100 dealers have participated, and dealers have transported up to 25,000 cars and pickups on their own.

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