Quote:
Originally Posted by XDCX
Although most of our topics on this forum have tended to focus on Chrysler, I believe that GM is treating their dealers far worse in terms of cash flow.
The fact that GM is still slow-paying dealer incentives after they received the TARP money is criminal in my opinion. It's no longer about GM not having the cash to pay incentives, it's about how many stores they can drive out of business.  |
I see slow incentive reimbursements in both my Chrysler and GM stores. The owners are wary of such practices since that money is sitting out there as a non-asset backed receivable.
If either GM or Chrysler decide that chapter 11 is the way they have to go to reorganize, the dealers waiting for incentive money will be the first ones to get hurt. With GM incentives in December topping as much as $8000 per unit, and some high-lines even more, I can tell you that there's a whole bunch of money sitting out there that dealers are waiting for.
Combine the slow-pay incentives with the recent arm-twisting tactics of Chrysler trying to get orders and you have a true mexican standoff at the moment. The old adage of "no tickee, no laundry" applys at the moment with dealers waiting for money before they order any units.