Welcome to the North American Subaru Impreza Owners Club Sunday December 17, 2017
Home Forums WikiNASIOC Products Store Modifications Upgrade Garage
Go Back   NASIOC > NASIOC General > News & Rumors > Non-Subaru News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.
* Registered users of the site do not see these ads. 
Thread Tools Display Modes
Old 03-07-2010, 04:35 AM   #1
Scooby Guru
Member#: 73805
Join Date: Nov 2004
Location: NEPA
forward in Italian

Default G.M. Plans to Reinstate 661 Dealerships

DETROIT — General Motors, seeking to avoid a protracted legal battle as it focuses on increasing sales, said on Friday that it planned to reinstate 661 dealerships cut last year as part of its bankruptcy reorganization.

That is more than half of the roughly 1,100 dealers who filed to challenge G.M.’s terminations through an arbitration process established by Congress.

G.M. said that it was calling and sending letters to the dealers being allowed to stay open and that they would receive notification by Monday.

“By doing this, we save a lot of time, energy and dollars, saving us and dealers from going through what could be a very long arbitration process,” Jim Bunnell, G.M.’s general director of dealer network support, said in a conference call with reporters.

Mark L. Reuss, the president of G.M. North America, said the dealers to be reinstated were chosen based on business criteria, not because they were likely to win in arbitration or to put up a costly fight.

“We’re trying to do the right thing for our dealerships, for G.M. and for the taxpayer, quite frankly,” Mr. Reuss said.

The arbitration process was established by Congress after its members were inundated by complaints from G.M. dealers in their districts.

But as its sales fell last year by about 50 percent, the company said it needed to thin out its dealership network so it and the remaining dealers could be more profitable.
Congress has made no similar demands that G.M. revive its factories.

Representative Steven C. LaTourette, a Republican of Ohio who helped establish the arbitration process, said the loss of dealerships affected individual communities. “You’re talking almost 40,000 people going back to work, potentially. The car dealer, in many cases, supports the Little League and supports the Chamber.” By forcing the dealerships to close, he said, “you’ve destroyed the fabric of some communities.” G.M. softened its opposition to the dealer cuts after Edward E. Whitacre Jr. became chief executive in December. It had more than 6,000 dealers before bankruptcy and now could have close to 5,000 when the arbitrations conclude. It had previously set a target of fewer than 4,000, but Mr. Bunnell said on Friday that the reinstatements would not make G.M.’s dealership network too large.

G.M. had been concentrating on consolidating its operations to match its diminished market share, but Mr. Whitacre has pushed people at all levels of G.M. to focus primarily on selling more vehicles. Having more dealerships could help him accomplish that goal.

The dealers that G.M. is allowing to stay open will have 10 days to review and sign the letter of intent they will receive from the company, then 60 days to fulfill new requirements, including maintaining adequate capitalization and financing.

Meanwhile, 418 dealerships are still fighting to be reinstated at Chrysler, the other Detroit automaker to go through bankruptcy protection last year. Chrysler forced 789 dealerships to close last June.

“To some degree there’s been some precedent set,” said Michael Boudreau, a director with a consulting firm, O’Keefe & Associates in Bloomfield Hills, Mich. “The Chrysler dealers will probably dig in their heels and fight a little bit harder now.”

Many of the terminated G.M. dealers never announced their status publicly and continued to operate much like other dealers except that they were not allowed to order new vehicles from factories. Still, their inability to sell the most popular models since last May undoubtedly cost them customers and hurt G.M.’s overall sales.

In February, the Ford Motor Company outsold G.M. by 471 vehicles. If each of the dealers now being reinstated had been operating normally and sold just one additional vehicle last month, G.M. would have stayed in first place.

Separately Friday, G.M. appointed Patricia F. Russo, a former chief executive of the French telecommunications company Alcatel-Lucent, as its new lead outside director. Under a new bylaw, Ms. Russo, one of 10 people the Treasury Department appointed to G.M.’s board after the carmaker emerged from bankruptcy in July, was given the authority to convene special board meetings as needed.

* Registered users of the site do not see these ads.
AVANTI R5 is offline   Reply With Quote
Sponsored Links
* Registered users of the site do not see these ads.
Old 03-07-2010, 11:03 AM   #2
Scooby Specialist
Member#: 20325
Join Date: Jun 2002
Chapter/Region: NESIC
08 Yamaha WR250R
07 Suzuki DL650


Domestic car dealers (for some weird reason) are the biggest auto-industry contributors to political campaigns. Coincidence?


Ah-- And half a million was spent on lobbying last year by the "Committee to Restore Dealers Rights". That probably didn't hurt.


It doesn't bother me that our government consists of whores. What bothers me is that they're $5 hookers from the projects who will do anything for a couple extra dollars.

Last edited by Chromer; 03-07-2010 at 11:13 AM.
Chromer is offline   Reply With Quote
Old 03-07-2010, 07:56 PM   #3
Scooby Specialist
Member#: 13967
Join Date: Jan 2002
Chapter/Region: SCIC
Location: Nunya
Bye Bye STI!!!


They'll just fail again...

If you drive down to the auto mall area... Ford is PACKED every day. The Chevy salesman are all standing at the gate waiting. Might as well give them gorilla suits or signs to spin around.
WRXGuyInUSA is offline   Reply With Quote
Old 03-07-2010, 08:00 PM   #4
Scooby Guru
Member#: 78118
Join Date: Dec 2004
Chapter/Region: Tri-State
Location: Westchester NY
2002 Corvette coupe
05 Legacy


Originally Posted by WRXGuyInUSA View Post
They'll just fail again...

If you drive down to the auto mall area... Ford is PACKED every day. The Chevy salesman are all standing at the gate waiting. Might as well give them gorilla suits or signs to spin around.
99subi is offline   Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Ward's obtains Hyundai doc detailing plan to split off luxury cars in dealerships AVANTI R5 Non-Subaru News & Rumors 1 01-05-2010 03:11 PM
Had to pay a dealership to do their job, WTF? minorc Newbies & FAQs 40 12-23-2009 06:35 PM
Motion to reinstate marquee tags... gongzero Off-Topic 2 02-01-2005 03:30 PM
First Bush Ignored Clarke Plan for AQ, Then Rejected Pentagon Plans to Get Zarqawi RRinDC Political Playground 18 09-29-2004 05:13 PM
If you're planning to go to Prescott...Read This! WagonMonster Southern California Impreza Club Forum -- SCIC 20 05-26-2001 01:37 AM

All times are GMT -4. The time now is 01:58 AM.

Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2017 Axivo Inc.
Copyright ©1999 - 2017, North American Subaru Impreza Owners Club, Inc.