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Old 08-06-2012, 11:34 AM   #7
XDCX
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Join Date: Nov 2007
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Quote:
Originally Posted by Lakeshow View Post
I was surprised that GM has the ability to buy-out an existing business. I'm not sure I'd sign that kind of contract with the devil.
I follow your point but in reality, what choice did the dealers have? Essentially the deal was if you sign GM's agreement you get your store back with a chance you'll be able to keep it. If you don't sign GM's agreement you're left with nothing.

In some ways it was like the dealers who were with Chrysler Financial and then had to switch to GMAC. GMAC was demanding personal guarantees and since they were the only flooring source who was willing to take on a Chrysler dealer at the time the dealers didn't have any other choice and had to agree to GMAC's terms.

Quote:
Originally Posted by Lakeshow View Post
Add another rural dealer to the list...Beartooth Chevrolet in Big Timber, MT. I do not have the details other than they were notified July 2, and closed by GM July 31st.
Wow, that's too bad. While I hate to see any dealership close it hits even harder when it's a rural store since it's often hard for the community to replace those jobs and the sales tax revenue. For the dealer it's hard to keep a business operational without a new car franchise when your entire facility and overhead was designed to support a new car franchise.
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