Download New GM New Dealer Agreement(s) Here

Robert Farago
by Robert Farago

An anonymous reader sent us the before and after agreements sent to GM dealers by the post-bankruptcy corporate mothership. Here’s the controversial post-bankruptcy GM dealer agreement before the National Automobile Dealers Association intervention (and media condemnation). And here’s the controversial post-bankruptcy GM dealer agreement after they faced the dealer revolt. The differences between these two documents are not as profound as their similarities. As Casey Raskob (a.k.a. Speedlaw) points out in a comment below, “In short, Dealer agrees to let GM dictate cars purchased, the buildings they are sold in, and this deal is subject to change at the whim of GM. Now GM dealers know how we normal folks feel signing a car lease.” Make the jump to read the analysis provided by our sharp end tipster.

I’ve called Senator Rockefeller’s office for the list of closed GM dealers, promised by the totally transparent (in all senses) GM CEO Fritz Henderson during his sworn testimony to the Senate. Nothing. Our tipster agrees that the list—with pledged financial calculations—is damning evidence of GM’s zombie walk.

I would love to see it too. I hear there are some major surprises on the list. I’d also like to see the REAL forecast of GM sales in the 2010 model year. Nearly a third of the GM dealers can’t sell 2010s (save some Camaros and a Cadillac).

And what of the mysterious “throughput”? A customer of a closing dealer will not necessarily drive to a new GM dealer when his old dealer was the basis of his relationship with GM. Chrysler/Fiat faces the same issue. Five years from now and another trade cycle and we might see some GM sales growth. Meanwhile, what’s going to happen to GM’s viability and the local dealer network.

This reluctance to reveal the list reveals that GM’s image is taking a beating. The public will be hearing bankruptcy news for the next two months, at least: the leaked dead dealer list, local layoffs, etc. And then comes January 1st, when GM dealers start closing like dominoes, laying off more local people. And then GM will report a major loss for ’09. Of course they’ll blame the economy or something, as will Chrysler, while Ford finally blames its problems on on the federal government for its problems.

As the Chinese say, we live in interesting times.

Robert Farago
Robert Farago

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  • TomH TomH on Jun 10, 2009

    Did GM go too far? Perhaps, but this "Agreement" is, in part, a reaction to the extreme pro-dealer bias of the state franchise laws. Remember it cost billions in dealer payments to close down Oldsmobile and GM was still in court with dealers right up to the C11 filing even though the last Olds was built over five years ago. Bankruptcy affords GM a once in a lifetime opportunity to reverse the trend toward "anything goes" dealerships and reestablish their brand. I've got to give GM credit for capitalizing on the opportunity, but the jury is still out as to whether there is any real vision or substantive direction behind this opening move. The old GM is bankrupt and dealers have the option of rejecting the new deal; it's business, nothing personal.

  • Qbn Qbn on Jun 11, 2009

    I would love to read a full-version of the dealership agreement contract!

  • Syke Kinda liked the '57, hated the '58. Then again, I hated the entire '58 GM line except for the Chevrolet. Which I liked better than the '57's. Still remember dad's '58 Impala hardtop, in the silver blue that was used as the main advertising color.
  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • Ravenuer The rear view of the Eldo coupe makes it look fat!
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
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