GM delays incentive payments to their dealers

[XDCX]

Originally Posted by dgale

Now GM fessed up today that it was curtailing our floor plan reimbursement by 2 weeks. Just as I suspected more items will now be joining the list of money due dealers but payment to be delayed. Next for sure, will be either coop reimbursement or warranty claims. Can't wait to see how many dealers start not making those sales tax payments due to the state. Just think with rebates up to $11,000 on some of our GM vehicles it doesn't take much to accumulate over $200,000 in factory receivables that we are holding are breath to collect.

Thanks for the update - even though it's bad news.

I bet there are hundreds of GM dealers across the country that are doing a cash flow analysis trying to determine how to keep their heads above water.

Your point is excellent - as a dealer, who do you slow-pay? State Sales Tax payments, Lien Payoffs, Service Contract premiums, etc. Essentially GM is forcing some of their dealers to break the law because they've shifted their cash problem to the dealer's balance sheets.

Do you sense that there's a lot of outrage over this policy among the GM dealers? Or is it too soon to tell?