A friend who ownes a parts wholesale business tells me he and his co part store owners have been informed by the general that they will eliminate the wholesale concept. These are warehouses that carry parts for all GM vehicles and provide a network of OEM parts to a certain region to all GM dealers. GM will now require all dealers to maintain their own inventories.

Appears to me GM will be able to control the pricing and eliminate a layer of competition. He used an example of a seat heater now at over $2K at the dealer when his cost was right around $500.

If this is the new business model I'm sure it will be a cash flow burden on many dealers and a challenge to have all parts in stock for the customer.

Perhaps our Rippy friends can add some information here?

BTW Chrysler has this model, Ford uses the wholesale model and Toyota swithched to it a few years back, at least those are the manufactures he does business with.