Braman's two-tier pricing lawsuit ends in settlement

[Lakeshow]

http://www.autonews.com/apps/pbcs.dl...#axzz2VNUBPJVv

Saw this yesterday, was surprised it wasn't on here yet. What do you guys think? This law suit had the possibility to change the business dramatically, but now we'll never know.

My guess...Someone at GM woke up long enough to realize Braman has the money and influence to win this suit costing GM lots of money now and in the future. They called someone at the top who woke up long enough to say I don't care how much you give him, just make it go away. Just a guess.

[79LilRedExpress]

No legal precedent set here

[DealerEx]

Originally Posted by Lakeshow

Saw this yesterday, was surprised it wasn't on here yet. What do you guys think? This law suit had the possibility to change the business dramatically, but now we'll never know.

My guess...Someone at GM woke up long enough to realize Braman has the money and influence to win this suit costing GM lots of money now and in the future. They called someone at the top who woke up long enough to say I don't care how much you give him, just make it go away. Just a guess.

Pretty good guess...they can't risk it going to court because if they DID lose, it wipes out the entire "carrot on a stick" process they use to establish two-tiered pricing. The ramifications of having all the various programs such as stair-step incentives, VPA, facility bonuses, etc...placed under LEGAL SCRUTINY is just too risky for them. The plaintiff's legal team would be able to demand access to all kinds of in house communication and documents that they don't want to have exposed. All it would take is a couple of pieces of paper that demonstrated that the objectives on a stair-step program were rigged to favor certain stores and the whole system comes crashing down...and I've seen some documents (accidentally sent to a dealer by mistake) that would do just that, so I know they exist. A shame that this won't get to the courtroom.

[XDCX]

Originally Posted by DealerEx

A shame that this won't get to the courtroom.

I still getting caught up and this quote echo's my sentiments exactly.

Why would Braman settle? He's got more money than he'll ever be able to spend, what could GM offer him to make him go away?

In the end, I agree with Lakeshow, it must be about the money and that's what makes the issue so frustrating.

I was really hoping GM faced their worst nightmare - a Dealer who was pissed off and had the resources to take a stand.

[XDCX]

I know I'm late to this thread, but I was wondering how the NADA responded to Braman's settlement with GM?

I'm guessing there was nothing but silence from the paper tiger?