Saved GM ready to start selling cars again

The 661 dealers that GM is extending reinstatement offers to have received letters this week outlining terms of their deals. The dealers will be able to get their franchises back without going through the debocle of an expensive and drawn out battle.

In the letter, GM outlined some basic elements to any franchise agreement, such as lot appearance, advertising spending, and capital requirements. Generally, dealers did not find the letter and requirements unreasonable, but more are expected to come. Dealerships will also have to comply with GM’s Essential Brand Elements (EBE) program, which is a guideline program for showrooms.

There is still a vast number of dealers who were not granted reinstatement, as approximately 1,100 dealers slated for closing have filed for arbitration. “We felt like we would be spending a hundred thousand dollars,” one dealer mentioned. “It was a relief because arbitration would take not only a lot of money but a lot of our time, and take the time away from selling cars.”

– By: Stephen Calogera

Source: CNN