NADA:Revised GM Agreement Addresses Majority Of Dealer Concerns
June 09 2009 - 3:16AM
Dow Jones News
A national group representing auto dealers on Monday withdrew
its opposition to General Motors Corp.'s (GM) effort to ink new
contracts with dealers who aren't on the auto maker's closing
list.
The National Automobile Dealers Association had been protesting
contracts GM sent to thousands of dealers last week who are among
those the auto maker wants to stay in business.
The group said GM imposed unfair restrictions on those being
offered to stay, including what it saw as unmanageable or unclear
requirements to upgrade dealerships, meet sales and performance
goals and restrictions on having stores that combine GM and non-GM
brand dealerships, NADA spokesman David Hyatt said Monday.
GM agreed to amend the offers enough to ease the dealer
associations' worries, Hyatt said.
A GM spokesperson could not immediately be reached.
The auto maker is moving to eliminate around 40% of its dealer
network in bankruptcy court. GM is asking all of its roughly 6,000
dealers to decide by Friday whether to accept offers to either
close or stay in business. Many dealers marked to close are
protesting GM's decision either legally or on Capitol Hill.
GM has argued it overspends to support and oversized dealer
network, which would produce better sales results if it included
fewer, healthier dealerships.
-By Sharon Terlep; Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com