GM outlines brands' future Remaining dealers face tough standards, sales goals By Robert Snell The Detroit News Novi -- General Motors Co. dealers who survived the automaker's bankruptcy were told Friday they will have to average higher sales and spend more updating their facilities. Some will also have to get used to selling smaller, more fuel-efficient and better-equipped vehicles than during the industry's SUV-crazy heyday. GM executives met with 430 dealers from around the Midwest at the Rock Financial Showplace as part of a nine-city tour to discuss the future of the automaker's four core brands: Chevrolet, Cadillac, Buick and GMC. The dealer tour began as GM said it expects to see U.S. auto sales increase 15 percent next year to about 12.1 million vehicles because of renewed consumer confidence in response to government stimulus programs. Speaking on the sidelines of the dealer meeting, Brent Dewar, Chevrolet vice president, told reporters the company expects 'to see a modest recovery in 2010 and a better recovery in 2011.' GM is selling or phasing out the Saab, Saturn, Hummer and Pontiac brands as it restructures, and dropping from 78 nameplates to 34. At the same time, it will try to expand Chevy's global reach. The company also is instituting tougher, costlier standards on remaining dealers, some of whom were anxious Friday to learn about GM's post-bankruptcy business plans. GM also said it named Julie Heisel, previously director of business planning for sales and service, to the new position of director of customer life cycle management. It will be her job to reach out to the 3 million customers who bought vehicles from discontinued GM brands or nameplates, or from dealers whose franchise agreements were not renewed, and try to keep them in the GM fold, said Susan Docherty, general manager of Buick and GMC. Strong sales reported Docherty said Pontiac sales have been consistently strong in recent months, in part because of the 'cash for clunkers' program, and the brand will run out of vehicles by the end of the year. When GM decided to kill Pontiac, executives expected to have cars available until the third quarter of 2010, Docherty said. By next month, however, there will be 15,000 to 16,000 Pontiacs left. GM is cutting its dealership ranks from about 6,000 today to as few as 3,600 by late next year, which will result in significant savings for the new GM. Remaining dealers were offered new franchise agreements, and more than 99 percent signed, agreeing to accept new performance standards for sales and customer service and to make facility improvements, in some cases. But several dealers who attended Friday's meeting said details have been lacking. Others want more direction about operating changes and sales expectations under the new GM. The meeting drew dealers from Michigan, Ohio, Illinois, Indiana, Minnesota, Iowa, Wisconsin and North and South Dakota. 'We're kind of in the dark,' said Leaird Cameron, general manager of Cliff Anschuetz Chevrolet Cadillac in Alpena. Additional meetings with dealers are scheduled for October, during which Cameron expects to hear more about new products. 'I'm happy with the lineup, but you always want to see some new products,' he said. Dewar said Chevrolet will introduce more models in the U.S. market 'that will allow us to be more relevant in the youth and eco markets.' Two key models, the Chevrolet Cruze compact car and Volt extended-range electric vehicle, will be introduced next year. Dewar impressed upon dealers the importance of selling smaller vehicles with premium interiors and options, which typically yield higher transaction prices and profits. Smaller vehicles touted 'Small doesn't mean less,' quality or content, Dewar said. George Fowler, general manager of Superior Pontiac-Buick-GMC in Dearborn, wanted to learn how GM will replace products once Pontiac is eliminated next year. The brand accounts for about 60 percent of Fowler's sales volume. Last week, GM killed one new Buick vehicle dealers expected would help make up for the loss of the Pontiac brand. The decision to ax the compact crossover, including a plug-in hybrid version, came days after it was panned by groups essential to the automaker's success. 'Buick has promised it will be coming out with new models, but the big question we want answered is, how are Buick-Pontiac-GMC dealers going to survive until they get the extra Buicks to us?' Fowler said. 'If 60 percent of our sales volume is going away, now what?' 