GM agrees to reconsider dealer closings

[Bruce Nunnally]

DETROIT — General Motors says it will reconsider its decision to close some dealerships as part of a compromise to scuttle federal legislation that would require it to keep dealerships open.

GM says it will conduct face-to-face reviews with dealerships and agree to binding arbitration. The automaker says in some cases, dealerships would regain lost franchises.

GM plans to cut 2,400 dealers from its 6,000-dealer network by next fall. The U.S. House passed legislation in July that would force GM to restore dealers it cut, but the Senate has yet to vote on that legislation.

GM had been negotiating with Congressional leaders since September on a deal to avoid the legislation.

[Bruce Nunnally]

Today, GM is announcing that it is prepared to implement a comprehensive plan that both resolves concerns raised by dealers regarding GM’s dealer network restructuring activities and allows it to continue to move forward with a critical component of its long-term viability plan.

GM will begin to implement this plan in mid-January provided that legislation related to GM’s dealer restructuring does not move forward. GM’s plan offers a more certain and timely process and the appropriate alternative to address dealer concerns especially compared to proposed legislation that would raise a variety of legal and constitutional concerns. The GM plan, the result of several months of discussion and constructive engagement among dealer groups and Members of Congress, provides complete transparency, face-to-face reviews and binding arbitration, which together, will likely result in some dealers being reinstated.

“GM especially appreciates the leadership of Senator Durbin and House Majority Leader Hoyer and the contribution of other Congressional members. Their tireless efforts to facilitate the discussion among all parties to achieve a non-legislative resolution to address dealer concerns were critical to the development of GM’s comprehensive plan,” said Susan Docherty, GM Vice President, U.S. Sales.

“GM values its dealer body and recognizes the contributions they are making to the future viability of the company, the critical role they play in satisfying customers and their importance to communities across the country. We are prepared to implement this plan so GM and its dealers can channel our full focus on building and selling exceptional cars and trucks with the consumer experience to match,” Docherty said.

“I would also like to thank the National Association of Minority Automobile Dealers (NAMAD) for their commitment to work through some very difficult and complicated issues involving GM’s dealer network,” Docherty said.

GM’s plan includes:

* A commitment to advise all Chevrolet, Buick, GMC and Cadillac dealerships that received a complete wind-down agreement of the criteria used by GM in the selection of that dealership for wind-down.

* A face-to-face review process for all complete wind-down dealers who have not already terminated their dealer sales and service agreements with GM.

* If the complete wind-down dealer is not satisfied with the outcome of the face-to-face review process, he or she may elect to proceed to binding arbitration. The arbitration will expressly be limited to whether GM selected the dealer to receive the wind-down agreement on the basis of its business criteria.

Additional components include:

* Accelerated wind-down payments to dealers consistent with the terms of their wind-down agreements.

* A process to resolve open issues identified by dealers related to the operation of wind-down dealers.

* Agreement to support public policy issues of mutual interest identified by dealers.

* Agreement to work with appropriate policy makers regarding floor-plan and other financing issues that are important to dealers.

* Additional evaluation in limited circumstances for complete wind-down dealers who purchased stock, land or dealerships from GM in the last four years.

* Reaffirmation of GM’s long-standing commitment to try to increase the diversity of its dealer body.

* In the limited circumstances where there are dealer re-establishments, area wind-down dealers will be given the opportunity to submit a proposal.

* Market reevaluation to ensure GM has sufficient dealer representation across the country.

* Placement assistance for service technicians and other dealership employees.

[Bruce Nunnally]

Bloomberg: http://www.bloomberg.com/apps/news?pid=206...5NTLQ&pos=6

Dec. 3 (Bloomberg) -- General Motors Co. and Chrysler Group LLC, modifying plans to shrink their U.S. retail networks, said they may restore some of the dealer franchises they shut or were scheduled to close.

[KHE]

DETROIT — General Motors says it will reconsider its decision to close some dealerships as part of a compromise to scuttle federal legislation that would require it to keep dealerships open.

The U.S. House passed legislation in July that would force GM to restore dealers it cut, but the Senate has yet to vote on that legislation.

GM had been negotiating with Congressional leaders since September on a deal to avoid the legislation.

The cretins in congress along with the "Auto Task Force" insisted GM reduce its dealer network as a condition of the loans so they did, now congress wants to force GM to keep the dealers open. Talk about inconsistent direction.

Congress is just a bunch of clueless idiots...

[Bruce Nunnally]

GM had already said that any Dealers who felt they were not being treated fairly should contact GM. This seems perhaps like a more formal, open, honest version of what they were doing already. I guess that is good for everyone. Better to do it on your own than due to legislation.

"No man's life, liberty, or property is safe, while Congress is in session."

- Mark Twain

[Bruce Nunnally]

http://detnews.com/article/20091204/AUTO01...ership-closings

"GM values its dealer body and recognizes the contributions they are making to the future viability of the company, the critical role they play in satisfying customers and their importance to communities across the country," said Susan Docherty, GM's head of U.S. sales.

GM said it would start implementing its proposal in January if Congress dropped the legislation.

The National Automobile Dealers Association said it appreciated "the good faith and constructive dialogue" with GM and Chrysler, but said GM's plan does not include a "sufficiently meaningful process" that could lead to a "reasonable opportunity" for a dealer to be reinstated.