FoMoCo, Lincoln Dealers Face Off Over Buyouts And Upgrades
Ford Dealership Cull. It Ain't Over Yet.

Ford is in pretty good shape now and it’s quite clear that they’ll survive, provided they don’t fall under the huge amount of debt they have. But don’t be fooled that things are safe at Ford. Especially if you’re a dealer.

Read more
Chrysler 8, Dealers 1

Chrysler is doing better than GM. At least when it comes to winning arbitration cases brought by culled dealers. GM lost both cases brought against them. Chrysler bats much better.

Read more
GM Dealer Activists Left Out Of Reinstatement
Chrysler In Breach Of Arbitration Law Already, Allege Dealers

Even with a government-mandated arbitration process in place, the battle between Chrysler and its 789 culled dealers is a low-down, dirty dogfight. Last week, Chrysler sent out letters to all of its rejected dealers, in its attempt to comply with the arbitration law’s disclosure requirements. But, dealers tell Automotive News [sub], those letters are justifications, but not explanations. Absent concrete evidence for why their franchises were closed (something GM has provided to its culled dealers), lawyers for some 65 rejected dealers are fighting back.

Read more
Will Chrysler Cut More Dealers?
Culled Dealers "Win," Don't Stop Whining

If you haven’t been following the drama surrounding the effort to restore dealers culled during GM and Chrysler’s bankruptcy, you might need to be brought up to speed. In essence both the cut dealers and the automakers have agreed to send create an arbitration process by which dealers could have the decision to cut their franchise reviewed by a neutral third party. The remaining conflict is over the criteria arbitrators should use to judge dealer viability, as the GM and Chrysler proposition would have forced arbitrators to use the same criteria GM and Chrysler did in the initial cuts. That would obviously have yielded the same results as the initial cull, so the dealers pushed for a set of criteria that is more favorable to their interests. Automotive News [sub] reports that a compromise has been reached in conference committee that would allow dealers to present “any relevant information” to make their case. That bill is now been approved by the House [sub] and is headed to the Senate, where its passage is “virtually assured.” But despite having all but guaranteed an independent review, culled dealers still aren’t happy.

Read more
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.

Read more
Under Congressional Pressure, GM Hints At Dealer Restoration

The recent revelation that congresspeople have been successful in coercing GM to rescind dealer closures in their districts, has the rest of our elected representatives (not to mention GM itself) sitting up and taking notice. In a conference call with Michigan’s congressional delegation, Fritz Henderson said GM was close to a deal which would restore a number of “mistakenly” closed dealerships. But GM hasn’t met with rejected dealers in weeks, and the Committee To Restore Dealer Rights is unaware of any such agreement. “[Henderson] was very vague, and the plan sounded inadequate to me,” Michigan Republican Hoekstra tells Automotive News [sub]. “He explained, for instance, that they might reopen some franchises if they found errors, but he didn’t say what those errors might be.” Henderson also rejected the dealer demand for compensation of $3,000 per vehicle sold in 2006, 2007 and 2008, further supporting suspicions that GM doesn’t have a deal at all. So what is happening?

Read more
  • IBx1 The only thing that stops a bad guy with a [Milwaukee Sawzall for stealing catalytic converters] is a good guy with a [Hydrochloric Acid 37%].
  • SCE to AUX Well, this is one reason to go electric.
  • THX1136 According to carbrain.com the cost for catalytic converter 'repair' is between $945 and $2475. They claim the converter cost itself can be up to $2250. Figuring $880 a unit doesn't seem too far out of line if the carbrain info is accurate. Wonder if gas theft is still going strong on the west coast also?
  • KOKing I'm not sure what to make of the small commercial van market in the US. There are a fair number of Transit Connects and ProMasterCitys, but Nissan/Chevy dumped the NV200 even though they seemed to sell well (though I guess Nissan decided to get out of the commercial space entirely), and I don't think Stellrysler ever bothered C/V-ing the Pacifica.
  • SCE to AUX "a future in which V8-powered muscle cars duke it out with EVs for track superiority"That's been happening for years on drag strips, and now EVs are listed in the top Nurburgring lap times.I find EV racing very boring to watch, and the lack of sound kills the experience. I can't imagine ever watching a 500-mile EV race such as Daytona or Indy, even if the tech or the rules allow such a race to happen.As for owning an electric muscle car, they already exist... but I've never owned a muscle car, don't want one, and can't afford one anyway. For me, it's a moot question.