GM Dealers with franchises not renewed

[Captain Awesome]

So they are saying that the list of dealers being closed by not renewing their contracts is going to be kept secret and it's up to the dealers to tell the public if they get the letter/phone call informing them they are to be closed.

Anyone hear from their dealer that it is on the list?

Can we keep a running tally of closing dealers in this thread?

[DVLDAWG]

I think its pretty unlikely that the dealers are going to advertise this as they will be afraid of losing sales. Their license wont expire until Sept. so they are going to keep trying to sell cars until then.

[Captain Awesome]

Originally Posted by DVLDAWG

I think its pretty unlikely that the dealers are going to advertise this as they will be afraid of losing sales. Their license wont expire until Sept. so they are going to keep trying to sell cars until then.

Some of them plan to sue GM over the closing. You can't sue someone anonymously, so there WILL be some names coming out.

[DVLDAWG]

Originally Posted by Captain Awesome

Some of them plan to sue GM over the closing. You can't sue someone anonymously, so there WILL be some names coming out.

Interesting point.

Can someone that knows something about Franchise laws chime in here? --- --- What exactly do they have to sue about? Isnt it up to GM whether or not to renew their license when it expires? If GM was just going to stop supplying vehicles to them I could see a lawsuit - but refusing to renew their license seems totaly legit.

[Captain Awesome]

The articles I am reading are talking about them suing GM over the closings. I don't know what legal grounds they plan on using. It seems like they should have none because a contract renewal should be at the discretion of GM. But they have threatened to sue, so we should be seeing who's one the list through the court system.

[Supermans]

This move by GM is a game changer of sorts if we are not going to be told which oglf the dealers are on the list. I for one hope that those customers with orders coming in after September are warned to give them enough time to order from somewhere else.

[Vash]

They have no choice. Cars are not moving, strong Camaro sales aside.

For instance, Bowling Green has been closed for weeks cause Vette's stopped moving (probably cause of SS and stang orders).

So they just can't keep them open. There is no money for it.

Also modern cars, like the Camaro, are so well built and rust proofed. They just don't fall apart on you like the old Kcars and Nova's, Pinto's.

So there are just too many cars in the world.

Should not really be a problem for the Camaro program the cars will still sell and be serviced I am sure. Maybe even better...

[DVLDAWG]

Just noticed when reading this article that it says their contracts wont be renewed after Oct. NEXT YEAR

http://www.cnbc.com/id/30765659


I missed that before - I thought it was THIS year. This should help aleviate alot of the fears for people that have already placed orders and are worried about getting their car before the dealer closes - something would have to be seriously wrong if you've already ordered a car, and dont have it by Oct next year!

[fastball]

GM is going to get a feel for if, who, and how many dealers will try to file suit within the next couple of weeks. If it looks like dealers are going to try to do battle, GM will file Ch. 11 and do exactly as Chrysler has done.

BTW, Chysler has filed in federal court, and federal laws supercede state franchise laws. Which means the dealers can cry, whine, and collect money for attorney retainers and court fees all they want...... what the judge says goes here, and if the judge grants the list of dealers to go bye-bye then so shall it be.

In other words, GM is being very nice to their dealers right now, by giving them a chance to go quietly, with plenty of notice, without getting the rug pulled out from under them.

Any GM dealer still wanting to fight this needs to keep in mind GM could just file ch. 11 and get the rug pulled out from under them quickly.

[2ssJB]

Although a dealer can choose to close whenever they want. So that could be tomorrow.

Originally Posted by DVLDAWG

Just noticed when reading this article that it says their contracts wont be renewed after Oct. NEXT YEAR

http://www.cnbc.com/id/30765659


I missed that before - I thought it was THIS year. This should help aleviate alot of the fears for people that have already placed orders and are worried about getting their car before the dealer closes - something would have to be seriously wrong if you've already ordered a car, and dont have it by Oct next year!

[Vash]

Well Red McCombs got his Pontiac and GMC dealership pulled in San Antonio.

He said he's gonna turn it into used cars and new Hyundai.

As if he's hurting for money or cars (Owns Vikings and lot of other dealerships).

[Rogue Leader]

No dealers in my area reported closing (somehow I tend to believe that they just arent saying... theres a LOT).

Specifically though the owner of my dealer told the paper he received no notice

[SS 376]

Originally Posted by Captain Awesome

The articles I am reading are talking about them suing GM over the closings. I don't know what legal grounds they plan on using. It seems like they should have none because a contract renewal should be at the discretion of GM. But they have threatened to sue, so we should be seeing who's one the list through the court system.

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.

[DGthe3]

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.

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.