Is GM sending out Termination Letters?

[XDCX]

Originally Posted by fullspeed

I don't buy the GMC thing, but I do believe that Pontiac is doomed.

Did you make that prediction before or after this news report? click here

I didn't see anything in the press until about two hours after your post. That's pretty cool if you have the ability to predict future events.....

[Txflyer]

From what I heard on the news conference it sounds like letters are being sent out. Anyone rec'd one yet, or heard EXACTLY when the dealers are supposed to know if they have been tapped?

[dduke]

Sounds like letters will go out the month of May and based on their numbers there will be 2,641 of them. 450 of which will be Saturn, Saab & Hummer. That leaves 2,191 additional GM dealers about to get the axe. Ouch.

[scooter]

These numbers are a bit confusing...If a GM dealer has Buick, Pontiac, & GMC and with Pontiac going away, the dealer will not close down, just lose the franchise, from what I read yesterday there are only 35-39 stand alone Pontiac dealers...so with them closing down it will not reduce the dealer count by much...same thing for Hummer and Saab dealers...when they are gone the franchise count is down but the acutal dealer count is the same...the only one that was mostly exclusive was Saturn and that is only 400 dealers....So I guess in my long winded question is dose closing a franchise mean the same as closing a dealer????

[Txflyer]

Broadcast today said they would start notifying dealers the week of May 11th.

[lsx only]

watched the broadcast they should have sent us a bottle of vasaline so we could sit down afterwards,its gonna be a crazy year

[possum]

What is "underproduction" ? Who, and how do they decide, what are the rules?

[XDCX]

Originally Posted by lsx only

watched the broadcast they should have sent us a bottle of vasaline so we could sit down afterwards,its gonna be a crazy year

lsx only - Welcome to DealershipForum.com

I totally agree, this is going to be a crazy year. Who knows what will happen from one day to the next?

[XDCX]

Originally Posted by possum

What is "underproduction" ? Who, and how do they decide, what are the rules?

Great questions.

Based on what I've read so far, this appears to be the best answer:

"Company spokeswoman Susan Garontakos confirmed the numbers and said GM is in the process of deciding which dealers to keep based on their sales performance, capitalization, potential profitability, size, image and customer satisfaction scores."

For the rest of the news story - click here

[CL Pgh]

Seems to me State franchise laws are going to come into play. I know PA is very difficult to terminate a dealer based on performance.

Welcome aboard lsx!!!

[Txflyer]

Originally Posted by CL Pgh

Seems to me State franchise laws are going to come into play. I know PA is very difficult to terminate a dealer based on performance.

My guess is that if GM starts running into too much interference from state franchise laws, NADA lawyers, etc. that you'll see the "surgical bankruptcy & you don't get anything" threat come into play.

[lsx only]

gm is gonna have a hard time buying all the dealers out

[XDCX]

Originally Posted by lsx only

gm is gonna have a hard time buying all the dealers out

I think that's the main reason bankruptcy is so often spoken as a solution for GM's problems. The simple fact is GM doesn't have the money to buy-out their dealers and bankruptcy will likely allow them to sever their dealer agreements.

For bankruptcy to work, promises need to be broken and someone has to lose. Sadly, it appears the dealers are taking a bigger hit than most of the other stakeholders because no one is looking out for their interests.

[Txflyer]

. . . and it just keeps getting better and better.

Here's the latest headline from Automotive News:

"GM will pay terminated dealers only for inventory, parts"

[XDCX]

Originally Posted by Txflyer

. . . and it just keeps getting better and better.

Here's the latest headline from Automotive News:

"GM will pay terminated dealers only for inventory, parts"

I just read the article - it's hard not to get overwhelmed with all the bad news.

Sadly, I'm convinced that many dealers are going to get screwed over simply because they're such easy targets. The UAW has the President looking out for their interests, who's looking out for the dealers?