GM releases plan to address dealer concerns

LaFontaine Buick-Pontiac-GMC-Cadillac Dealership, Michigan

GM has announced that it is ready to take action on a comprehensive plan that resolves concerns raised by dealers regarding GM’s dealer network restructuring activities.

“GM will begin to implement this plan in mid-January provided that legislation related to GM”s dealer restructuring does not move forward,” the company said in a statement. “GM”s plan offers a more certain and timely process and the appropriate alternative to address dealer concerns especially compared to proposed legislation that would raise a variety of legal and constitutional concerns.”

“GM values its dealer body and recognizes the contributions they are making to the future viability of the company, the critical role they play in satisfying customers and their importance to communities across the country,” said Susan Docherty, GM Vice President, U.S. Sales. “We are prepared to implement this plan so GM and its dealers can channel our full focus on building and selling exceptional cars and trucks with the consumer experience to match,” Docherty said.

Click through to see what GM’s plan includes.

GM”s plan includes:

* A commitment to advise all Chevrolet, Buick, GMC and Cadillac dealerships that received a complete wind-down agreement of the criteria used by GM in the selection of that dealership for wind-down.
* A face-to-face review process for all complete wind-down dealers who have not already terminated their dealer sales and service agreements with GM.
* If the complete wind-down dealer is not satisfied with the outcome of the face-to-face review process, he or she may elect to proceed to binding arbitration. The arbitration will expressly be limited to whether GM selected the dealer to receive the wind-down agreement on the basis of its business criteria.

Additional components include:

* Accelerated wind-down payments to dealers consistent with the terms of their wind-down agreements.
* A process to resolve open issues identified by dealers related to the operation of wind-down dealers.
* Agreement to support public policy issues of mutual interest identified by dealers.
* Agreement to work with appropriate policy makers regarding floor-plan and other financing issues that are important to dealers.
* Additional evaluation in limited circumstances for complete wind-down dealers who purchased stock, land or dealerships from GM in the last four years.
* Reaffirmation of GM”s long-standing commitment to try to increase the diversity of its dealer body.
* In the limited circumstances where there are dealer re-establishments, area wind-down dealers will be given the opportunity to submit a proposal.
* Market reevaluation to ensure GM has sufficient dealer representation across the country.
* Placement assistance for service technicians and other dealership employees.

– By: Stephen Calogera