GM offering HUMMER dealers bonuses and buyouts

As reported last week, GM is moving as quickly as possible to sell HUMMER. Hoping not to relive the lawsuits it faced from dealers when it killed Oldsmobile, dealers said today that GM is paying HUMMER dealers early bonuses and is in talks to buy out showrooms.

Tim Kelly, a HUMMER dealer in Chattanooga, Tennessee, told Automotive News that dealers are not likely to go down without a fight, however “GM is handling it the right way by making peace with each dealer, one by one.”

Bonuses are based on the dealer’s performance in the 2nd and 3rd quarters of 2007 with the average bonus being at least six figures.

HUMMER sales fell 59.3 percent in June to a total of 2,072 units sold. It has been said that GM is talks with Tata Motors and Mahindra and Mahindra as potential buyers of the brand.

 

Source: Automotive News (Subscription Required)