Quote:
Originally Posted by Can-Am
I'm not sure, but if GM wants a dealer to close or stop selling a certain brand, they have to pay the dealer a buyout fee to give up the franchise. GM also has to show a reason why they are not renewing the franchise agreement. Basically, customer complaints and low profits aren't good enough; the dealer has to either be doing something illegal or something really egregious. GM had to pay a ton of money to dealers when they got rid of Oldsmobile. But since GM is going into bankruptcy, those laws trump any state franchise laws.
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As I understand it, much of the payout for Olds was to buy up the unsold new cars sitting on lots. I think Chrysler is doing the same thing with their dealerships that are getting closed. But if GM is doing it over ~18 months, then many of those dealers will be allowed wither and die, rather than 'killed' instantly.