Culled Dealers Dig In Over Deal
As soon as GM and Chrysler agreed to review their dealer cull decisions, the culled dealers in question began complaining that the review would not improve their situations. According to the aggrieved dealers, the new review would be based on the same allegedly flawed data as the initial cull, meaning nothing would be changed. By GM’s own admission, only 39-51 of the over 1,000 dealers cut would even stand a chance at reinstatement. Now, Automotive News [sub] reports that a new measure has passed the House of Representatives which would allow dealers to “present any kind of relevant information during the arbitration.” The measure comes in the form of an amendment to the House Financial Services bill, which is headed to a conference committee in which House and Senate leaders must arrive at a compromise in order to send the bill to President Obama.
The National Automotive Dealer Association had criticized the GM and Chrysler review process, saying:
NADA appreciates the good faith and constructive dialogue we have had with GM as we try to build a consensus to ensure that GM and its dealer network are as successful as possible. GM’s announced plan to address the issue of dealership closings is a positive step, but we do not believe it establishes a sufficiently meaningful process that provides for a reasonable opportunity for dealer reinstatement.
But strangely, the passage of this revision has not drawn NADA’s unqualified support:
NADA supports this approach unless GM and Chrysler agree to an alternative that addresses dealer concerns. The revised amendment would give affected dealers transparency and the right to arbitrate. The arbitrator would balance the interests of the dealer, the manufacturer and the general public. Regrettably, the revised amendment would not provide compensation for affected dealers.
The revised LaTourette amendment is part of the final negotiations on a year-end spending bill necessary to keep the government operating. These leadership-driven negotiations on the broader bill will occur during the next few days. The language could be accepted, rejected or modified. NADA is working aggressively with all parties to achieve a meaningful opportunity for dealer reinstatements.
The Detroit News reports that another round of meetings between GM, Chrysler and their culled dealers is under way. The battle continues…
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- Cprescott It is ugly enough. But why? You refuse to build enough of your products for your consumers.
- Cprescott Only if your income also gives you more votes.
- MrIcky It's always nice to see a car guy put in charge of cars instead of an accountant. I wish him well and look forward to some entertaining reveals. I think he and Gilles may be the only industry people that I actually enjoy listening to.
- Master Baiter It doesn't matter whether autonomous vehicles are better or worse drivers than humans. Companies with deep pockets will find themselves sued over incidents like this. Enough lawsuits and the whole business plan collapses. Cheaper to just put a human behind the wheel.
- MaintenanceCosts How many dogs are wiped out by human drivers annually?Which type of driver wipes out more dogs per mile? Per trip?Without some context there's not much information here.
Bring 'em all back and let them die natural deaths. Then they can complain to the consumers. I'm tired of hearing about dealer welfare. One mega-dealer near me is losing Saturn, Hummer, Saab, and Pontiac. Good thing they took on Nissan, Infiniti, Subaru, Hyundai, and Kia a few years ago, to help out their GMC, Buick, and Cadillac sales. What timing.