GM Dealer Activists Left Out Of Reinstatement
Published: March 9th, 2010
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We reported yesterday that GM’s recent dealer cull flip-flop was motivated by Chariman/CEO Ed Whitacre’s desire for increased sales volume. Though that may have been the main reason GM took over 600 dealers back into the fold, there was clearly another, more sinister reason for the move: making an example of dissident, activist dealers. Automotive News [sub] reports that GM has contacted all 661 reinstated dealers, and believe it or not, none of the 7 dealer members of the Committee to Restore Dealer Rights have been contacted. Founding member Tammy Darvish tells AN [sub],
The only thing I’m confident of is that I’m sure it’s not a coincidence
Ya think? GM won’t comment on any of the 499 dealerships that haven’t been contacted, but this sends a clear message: mess with The General and you won’t be part of the new push for volume. Darvish and the other rejected dealers still have the arbitration process, but it seems unlikely that any of them will ever be welcomed back into the bosom of GM any time soon.
More by Edward Niedermeyer
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Ah, Government Motors bites. Ouch!
Is Bill Heard in that picture? Or has volume mad Ed already brought him back into the dealer fold?
There is little relationship between the number of dealers and volume. It's not as though people don't know where to buy a Chevy. If more dealers equaled more volume, then they ought to put one on every corner. I'd like to know where in the Constitution it says that a bankrupt company under government ownership has to hamstring its cash flow by keeping every dealer door open.
Is it me.. or the underlying fact is still there.. GM still has too many dealerships.. and putting these yahoos back only means more personal competition with itself. Yes I know, there are a dozen other issues underneath that, like how the dealers handled it, and how Generic Motors also handled this.. But, isnt the same problem still there?? Too many dealerships, competing with one-another?!?