GM Fighting Colorado Culled-Dealer Bill

Edward Niedermeyer
by Edward Niedermeyer

The Colorado House’s passage of HB-1049 [ PDF here], a bill requiring restitution for dealers culled during the Chrysler and GM bankruptcies, has drawn a $60,000 “no” campaign from General Motors. The Denver Post reports that GM’s ad campaign, which features lines like “we must keep driving forward to repay our government loans,” and “don’t let special interests stick taxpayers in reverse,” has riled up local lawmakers more than ever, drawing such timeless put-downs as: “they must be spending tax dollars on Botox to say that with a straight face.” The bill would require OEMs compensate culled dealers for signs, parts, dealer upgrades and more, as well as offer them the right of first refusal for any new area dealerships.

Arbitration between culled dealers and GM and Chrysler is ongoing, having been mandated by congress, and it’s already creating friction, particularly for Chrysler. But federally-mandated arbitration will only accomplish so much, if states like Colorado continue to push back for local culled dealers. Dealers are protected on the state level by franchise laws that vary significantly from state to state, and if local legislators (who are much more easily persuaded by the pleas and donations of local dealers) dig in and fight, GM and Chrysler’s dealer culls could become hopelessly mired in the kind of compensation negotiations that collectively earned Oldsmobile dealers about $1b when that brand and its dealers were wound down.

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  • Psarhjinian Psarhjinian on Feb 22, 2010

    Interesting how the cause you're advocating is never a "special interest". Just like how the men with guns who you agree with are "freedom fighters" instead or terrorists, how you're always a member of the "silent majority" and not the "vocal minority" and it's never "propaganda" if you agree with it.

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    • Steven02 Steven02 on Feb 22, 2010

      MikeAR, you would need to back it up with facts, not conjecture. Bankruptcy law was followed in both cases.

  • Mr Carpenter Mr Carpenter on Feb 22, 2010

    I don't know if you live in America but it's almost a moot point, psarhjinian. Because it was "domestic terrorists" from 1775-1788 give-or-take, who made the United States possible. And the United States has made it possible for millions of folks all over the world to NOT have to live in abject terror of their own government. So why are you tearing me down, presumably for my saying over the months, that our own country is now going down the wrong path, and in fact, has chosen to do so many administrations ago? I suppose you'd have been mad at someone on the Titanic for telling you to go to the life rafts, when you hadn't finished your party and dinner yet (after the ship hit the iceburg). Revellers were literally going out on deck and getting shavings of ice for their drinks... As for what I'm presuming you are referring to, the islamic "freedom fighters" that the world is fighting right now, what if I really blow your mind and give you a truth you may not have ever heard before. Islam isn't so much a religion, it is a political system disguised as a religion. There isn't any other religion on earth which so consistently demands the destruction of non-adherents as Islam. The world is absolutely full of lies, psarhjinian. That statement is an absolute truth. There is also the absolute real truth. But this isn't the place to go into that. But I'll give you a hint. Time is literally running out. Free will being what it is, it's our responsibility to figure it out and take our own life decisions then live with the consequences. This should give you a hint as to why I'm not afraid to speak up when I see wrong-doing of any kind. Am I perfect? Not even close. But neither are you or anyone else.

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    • FreedMike FreedMike on Feb 23, 2010

      @Mr. Carpenter: You make a huge mistake calling the Continental Army during the revolution "domestic terrorists". They conducted their war the proper way: against the enemy's army, NOT against the enemy's innocent civilians. The latter is terrorism.

  • Mr Carpenter Mr Carpenter on Feb 22, 2010

    Sorry, buddy, didn't mean to misconstrue what you were saying. That's the problem with not being face to face and trying to fathom the intent of words written from one's own perspective. Apologies and thanks for not taking it personally, which wasn't ever the intent. Yes you have some very valid points. Naturally enough, you can understand that from the perspective of many of us, the USA isn't the place it used to be (and never was). Hindsight seems to always have rose colored glasses attached? But that aside, it can easily be seen that the entire world - not just the US - is a what could almost be described as a perfect storm in so many ways.... we sure have our work cut out for us, and shouldn't give up the ship / head to the hills with our rifles & bug-out-bags just yet... (and at my middle age, I frankly wouldn't survive such a scenario anyway - best to leave the Mad Max lifestye to the younger set if sillyvization collapses)!

  • Gypsytda Gypsytda on Feb 23, 2010

    Something else to remember when it comes to the failures of GM is that they have been working on their failure for decades. this is from wikipedia (which I know is not 100% on target, but it can be varified if questioned) "General Motors was financially vulnerable before the automotive industry crisis of 2008-2009. It came close to insolvency and bankruptcy after falling sales caused a US$4.45 billion loss in 1991.[citation needed] Cost-cutting and management changes restored profitability for the next 10 years.[citation needed] In 2005 the company posted a loss of US$10.6 billion.[15] In 2006, its attempts to obtain U.S. government financing to support its pension liabilities and also to form commercial alliances with Nissan and Renault failed. For fiscal year 2007, GM's losses for the year were US$38.7 billion,[16] and sales for the following year dropped by 45%" GM knew they were failing, they continued the same path, they refused to improve.. had they corrected their issues way back when they would not be in he situation they are in now. (One huge error was creating Saturn).. They also constantly make the same mistake 2, 3 or more times and simply labeled it under other names.. Chevy (former) Pontiac, GM, (former) Saturn, (former) Oldsmobile, Buick.. etc.. there is so much redundancy.. if they could try and focus on one car correctly that would make a HUGE difference. I feel for the dealers, I feel for the plants.. I do not like to see or want for anyone to lose jobs, and especially right now, in this economy. If GM is successful (and they likely will be) in cutting the dealers they targetted to cut, I hope for those dealers to simply select a better auto company to support & sell (and that really is not a stretch). If I was one of those dealers I would not want to continue to sell/support vehicles from such an awful company.