Sales Effectiveness: GM & Chrysler sales performance data is not a true measurement of a dealer’s performance, and therefore not appropriate as a criteria for termination. State average is inherently flawed as illustrated below.
The manufacturer’s evaluation of a dealer’s sales performance is based on the assignment of an area of responsibility (manufacturers typically provide dealers with a computer generated map of this geography) and the requirement that a dealer maintain the state average % of sales. In other words, if Chevrolet sells 10% of all the cars in the state, then each Chevrolet dealer must sell 10% of all the cars in its assigned geographic territory to be “Sales Effective.” Area of Geographic Sales and Service Advantage AGSSA (GM), and Primary Market Area PMA (Chrysler) are acronyms used to describe the assigned territories. Some of the Problems with this approach:
Just as the country has variations by region in vehicle registrations, Domestic vs. Import, within the states themselves are wide swings that automatically prevent Imports or Domestics from achieving a fictitious “state average.”
