GM reaches agreement with dealers, will clear up issues

General Motors said that it has reached a deal with the National Automobile Dealers Association on franchise terms for more than the 3,500 dealers it plan to keep after coming out of the ‘surgical bankruptcy.’

Earlier last week, John McEleney said in a Senate testimony that GM’s agreement with dealers was very much “one-sided” and would leave the dealer with few legal rights. However, McEleney’s tone changed after a meeting with GM’s Tony Clarke last night.

NADA has now released a statement saying it “supports GM’s amendments to the Participation Letter Agreement.”

“I especially commend GM for its flexibility and its willingness to make substantive clarifications and modifications to address dealer concerns. We believe GM has made a very good faith effort, given the unprecedented circumstances facing GM and the industry,” McEleney said.

GM’s vice president Mark LaNeve said that GM will now send out a letter to dealers clarifying various issues in the Participation Agreement.

GM wants to close between 2,400 and 2,700 of its dealerships.

– By: The Daily Auto Editor

Source: Detroit News