By on September 9, 2008

Well, they will be after they read Richard Sox’s article in Dealer Magazine. According the bottom blurbette, Sox is “a lawyer with the firm of Myers & Fuller PA, with offices in Tallahassee, Florida and Raleigh, North Carolina. The firm’s sole practice is the representation of automobile dealers in their quest to establish a level playing field when they deal with automobile manufacturers.” Now where have I heard the term “level playing field” before?” Anyway, if HUMMER is Gox, Sox has got his Gox box socks. “If GM were to give up on the franchise and simply discontinue the manufacture of Hummer vehicles, then as I have described in this column several times before in discussing Pontiac, Buick and Mercury, among others, dealers will have a claim against GM for wrongful termination under the franchise laws. Hummer dealers who either recently acquired the franchise or recently constructed a Quonset hut facility have easily-quantifiable damages resulting from the termination. If GM’s handling of the termination of Oldsmobile is any indication, with the right pressure, GM will settle with dealers that fall within this category.” Maybe after the federal bailout…

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14 Comments on “HUMMER Dealers Ready To Sue GM...”


  • avatar
    no_slushbox

    The claims of myopic Hummer dealers don’t deserve anything more than unsecured creditor status in a Chapter 11 Bankruptcy proceeding.

  • avatar
    Dave M.

    FTA:

    “Arguably, no one could have predicted $4- plus for a gallon of gasoline.”

    Really? Because at nearly 50 years old, I’ve heard about the finite supply and increasing demand by competing industrialized nations for, oh, maybe THIRTY-FIVE years.

    Ostriches, all of them.

  • avatar
    MikeInCanada

    I spoke with my lawyer earlier today and I am now part of the (impending) lawsuit against GM.

    Pioneering the legal concept of “Observer Trauma” I too have been injured (financially) by GM decision to either close, cut loose or just plain diminish the Hummer Brand.

    By simply being pissed off about all this – countless days (that right, I can’t count them) have been shaved off the back end of my life – a life that I rather enjoy living.

    Well, not anymore; so pay me, jerks.

  • avatar
    HarveyBirdman

    It’s interesting how the article starts by being Hummer-specific, quickly shifts into a general discussion of franchise laws, and smoothly evolves into a sales pitch for Mr. Sox, Esq.’s law firm. Imagine that. I wonder if he had to pay advertising rates for the space for his column…

  • avatar
    Pig_Iron

    Let them sell GMC’s.

  • avatar
    hltguy

    When I was in high school in the early 70’s I worked at a gas station on the weekends, during the first Arab oil embargo. We were only allowed to dispense eight gallons of fuel at a time, and then there was the odd/even gas days (per the numbers on the license plates). For anyone to say that they could not forsee a spike in oil prices is just idiotic. Don’t these supposedly smart people read financial journals? or anything else outside their industry.
    Hey, if you sell Hummers, the risk you take is what is happening now. Same is true if you sell Winnebagos or large boats.

  • avatar
    motownr

    I dealt with M&F et al on the Olds wind down, and I think that the column is wishful thinking.

    GM taught the entire industry how NOT to extinguish a brand with Olds; you can bet that they will not repeat the same expensive lesson.

    Whether they sell the brand or simply starve out the dealer body a la Isuzu (also a former GM holding), they will do so with a firm eye on not triggering any of the state franchise laws that govern such actions.

    Hummer dealers are in for a rough ride.

  • avatar
    blindfaith

    This is an example of why the car companies cannot stay in business. GM is suppose to support a business venture destroyed by gasoline price rise. By the way, the gasoline price rise was due to the mutual “fun” families buying and holding the oil barrels by the billions driving up prices dumping for huge profits. Oh they goofed other parts of the portfolios took large hits. Does anybody want to explain what the government is doing to stop this?

    Why should GM be held accoutable for business failure they did not cause. Maybe we can sue GM them for our stock prices hitting lows like Chrysler did in the 70’s? Good time to buy GM!

  • avatar
    Adub

    The Hummer dealer in my local town closed last week. The Saturn side still exists, though.

    If GM is going to starve the dealers out, I think they should sue. At the very least, they can break GM’s back.

  • avatar
    no_slushbox

    I say leave them with nothing but an Aveo hatch with a 7 bar grill and an H11 badge.

  • avatar
    davey49

    I say sue away. Panicking and ending HUMMER is a dumb idea. It’s only driven by SUV hate. Once the panic is over HUMMERs will be back to selling strong. I say keep the brand going, keep new product coming, keep the vehicles the same but introduce new ones, all with strong off road capability and a bit of luxury.
    Barring all that and if the brand and models disappear off the map. I say that Saturn needs a few more dealers. And remember, despite the seemingly low total numbers for Saturn that Saturn has the best per dealer numbers of any domestic brand.

  • avatar
    rudiger

    I’m just curious how many Hummer dealers are left to take the just introduced, brand-new Hummer H3T. While it’s unlikely that they’ll actually be selling any, I just wondered where the relatively few they’ll be building will be going. The H3T has got to be one of the worst timed new model introductions in automotive history. Hugely discounted Hummers are lanquishing on lots, dealers closing left and right, and here comes a brand new model that has a snowball’s chance of selling any better.

    In fact, can we maybe get a ‘Question of the Day’ on what might be considered the most poorly timed new vehicle introduction?

  • avatar
    OldandSlow

    Hummer is a brand that got its start playing the conspicuous consumption bubble and had a healthy tax incentive catering to small business owners.

    It all was rolling along fine until the “Panic” over fuel prices set in and the economy tanking when the credit bubble popped.

    So, Dealers didn’t see the handwriting on the wall over a year ago, neither did GM and now it is all GM’s fault.

  • avatar
    fisher72

    Hummer dealers will get paid the same as any bankruptcy sale. $.10 on the dollar.

    The oil export crunch is just starting. Indonesia is now and oil importer and officially left OPEC. Next year the UK. In 7 years, Mexico. We will never run out of oil. We will be running out of petro dictator exportable oil.

    Good luck Hummer.

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