Akerson: 90% of Dealers Now Turning a Profit & More Than 3,000 Upgraded Their Facilities

Surrounded by a mob of reporters immediately following his keynote speech Tuesday morning at the NADA/IHS Automotive Forum 2011, General Motors top boss Dan Akerson was pretty blunt when asked a question regarding the government's future in terms of its GM ownership.

"They will tell us when they're getting out," Akerson told reporters. "I will not tell them when they're getting out."

Furthemore, Akerson also didn't shy away when asked during a Q&A about GM's stock prices staying rather flat at around $33 per share.

The GM chairman and chief executive explained how the dynamics of rising fuel costs and the economic crisis have impacted its stock price, and detailed how the automaker responded.

Such candid insight was course de jour on Tuesday for the GM CEO, especially when his speech turned to the automaker's relationship with its dealers.

He pointed out the double-digit improvement in how satisfied its dealer body is with the automaker, but also acknowledged that a cynic may argue "any improvement looks good when you start at the bottom.

"GM didn’t always do a great job listening. I know that, but I can’t erase it. What I can do is tell you that we’re now working hard to re-build positive, lasting relationships with all of you," Akerson said.

"The hard truth is that right-sizing our dealer network was extremely difficult. It was also a necessary component of GM’s transformation … and it’s making a real difference."

What Akerson called the "best metric" of GM dealer success is that 90 percent are now turning a profit. He also pointed out that a large chunk of GM's 4,500 stores — which Akerson put at about 3,300 dealerships — have upgraded their facilities.

And the CEO indicated that the automaker has heard from dealers that GM is doing a better job at incorporating their feedback into the company's plans.

"And we should be," he stressed. "We should have been doing more of that all along."

The automaker's progress is tangible. Akerson noted that in the National Automobile Dealers Association's Dealer Attitude Survey, the satisfaction GM dealers have with the automaker has jumped 35 percent in the last year-and-a-half.

Almost every aspect of the survey showed GM reaching all-time best scores, Akerson stressed.

"We have improved across the board and hit historical highs in virtually every category — from franchise value to consideration of dealer input to corporate helpfulness," Akerson stressed,. He later added, "At GM, our goal is to have the best dealer relationship in the business."

Oil Is Industry's Biggest Challenge

Moving along, citing a popular topic Tuesday at the forum, Akerson said that the biggest issue facing the overall auto industry is its "almost complete reliance" on oil.

Rising fuel costs was certainly a big theme throughout Tuesday's presentations, as gas prices escalate at a pace close to the run up seen in 2008.

"The last time prices climbed to this level ... it caught all of us flat-footed," Akerson noted.

But this time, "we are better prepared," he argued.

Akerson pointed to the fuel-efficient offerings of GM, namely the Chevrolet Cruze, whose sales were up 280 percent year-over-year in March (when comparing it against the vehicle it took the place of).