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General Motors Company Message Board

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  • wngr123 wngr123 Jan 21, 2013 7:37 AM Flag

    Taxpayers will take a big loss

    "Wngr, do posters not realize that the vast majority of dealerships are private businesses, ie, not GM employees? So if dealers lose money, it's NOT GM's problem to bail them out."

    I agree with you to an extent. Normally I would just let the customer decide who should stay and who should close. This was a condition of getting government financing, namely from a guy named Harry Wilson in conjunction with Steven Rattner. They thought that with the reduced volume that GM would have after the bankruptcy, it made no sense to keep as many dealers and have them struggling to stay alive.

    In the dealer franchising agreement, if a dealer is termination without cause, he is entitled to reparations. I think it was a mistake to pick the winners and losers. NADA has a very strong lobbying force both in Washington and locally. They have a number of representatives in their pocket making it difficult to take any kind of action at all. Frankly, I was surprised that as many got shut down as it was. Remember the big stink in congress with each representative fighting to keep their dealers alive. In fact, many on the original list did not get shut down as planned.

    Having said that, you wouldn't want a dealer who was struggling to stay alive to let his store run down and look shabby. In that case, I would have handled it on a one by one case.

    No, I don't believe that the average person understands that the dealers are independent.

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