Quote:
Originally Posted by 57years
XDCX is correct. No GM dealer received any funds for anything but "wind down" money. No parts inventory, no blue sky. "Wind Down" funds calculation by GM were never identified, but upon dealer calculation, they boiled down to 14 months rent. If the dealer filed for arbitration, GM generally offered some pittance to keep from going to Arbitrator, but EVERY legal document had an NO SUE clause, Dealer had to sign.
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I highlighted your "Dealer had to sign" portion of your quote because I think you correctly identify the reality that the GM OLDCO Dealers faced.
Essentially the GM OLDCO Dealers didn't have any choice but to sign the Wind Down Agreement. Sure, there are some GM Dealers who didn't sign the Wind Down Agreement but they are a very small minority.
The fact that the vast majority of the GM OLDCO Dealers signed the Wind Down Agreement doesn't, in my opinion, signal that they agreed with the agreement just that they knew they didn't have any other choice.
Sadly, GM's bankruptcy provided GM with substantial power and placed them in a position where they could dictate the terms of any agreement with their OLDCO Dealers.
Clearly I'm not a lawyer or any type of expert but I wonder if the GM OLDCO Dealers who signed the Wind Down Agreement could ever be included in the lawsuit against the Treasury arguing that they were forced to give up their rights to sue and GM had the power to dictate the terms of any agreement they ultimately signed.