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#668 of 725 now on their way back...
Jan 06, 2010 (7:40 pm)
At least 100 GM dealerships will be reinstated, Whitacre says
DETROIT -- Ed Whitacre, General Motors Co.'s chairman, expects at least 100 GM dealerships will be restored in the arbitration process mandated by a new federal law.
“I think a large number will get reinstated,” he said today in a meeting with reporters. “I think that's a given. It's in the hundreds.”
.....An arbitration judgment must be handed down by June 15. In bankruptcy last year, Chrysler rejected 789 dealerships, while GM said it would wind down 1,350 through October 2010.
GM used a “pretty arbitrary” cut-off point in choosing which dealers to reject and probably made some mistakes by cutting some good dealers and leaving some bad ones, Whitacre said.
.....Arbitration could restore good and bad dealerships, Whitacre said.
“The bad thing would be if they're a lousy dealer that has a lousy storefront and through some process they're put back in arbitrarily,” he said. “If they're a good dealer and would really push GM in a classy manner, like we want it done, then it would be really good.”
This is good news for dealers, but bad for GM in the long run I think.
Jan 06, 2010 (7:47 pm)
Chrysler is fighting it...
Chrysler asks court to block state laws favoring rejected dealers
WASHINGTON -- Chrysler Group has asked the U.S. Bankruptcy Court to pre-empt new state laws that seek to make it easier for rejected dealerships to win reinstatement.
Chrysler argued that new laws in four states will disrupt the company’s business prospects by forcing it to work with “in large part poor-performing dealers.”
.....“New Chrysler faces the prospect of immediate, severe and irreparable injury,” says the complaint, filed in the Bankruptcy Court in New York. The laws “completely undermine new Chrysler’s ability to develop the strong dealer network it needs to compete successfully in the automotive industry.”
I swear, the use of these names, New GM and New Chrysler, is so sickening I could just barf. New Chrysler, same as the old Chrysler except not taking responsibility for the swath of wrecked dealers, suppliers, you name it, in its trail. Ditto GM.
Apparently Chrysler wants to set up some network of high-performing dealers called Genesis. This will get in the way. Oh boo hoo.
#670 of 725 Re: so of COURSE [nippononly]
Jan 10, 2010 (6:31 am)
I still do not understand the logic used in pulling the contract from any of the GM or C dealers. Why not just let them die of natural causes. If they cannot sell the vehicles they are offered from the automaker they close the doors or find a better source from Korea or maybe China. If they were over crowded the best dealers should come to the top and the others go out of business. It has worked that way for a 100 years. Why is it any different today?
#671 of 725 Re: so of COURSE [gagrice]
by Stever@Edmunds HOST
Jan 10, 2010 (10:11 am)
Every state has their own set of dealer franchise laws that were implemented with the idea of protecting the dealers from the capriciousness of the manufacturers.
Some say the states went too far and there's too many restrictions on the manufacturers on what methods they can use to weed out their underperforming dealers.
The bankruptcy court is federal so its decision to let the banko automakers close some dealers overrode state laws. So the GM and Chrysler dealers did an end run and cried to Congress.
Not exactly pure capitalism (nothing is, eh?).
Jan 18, 2010 (10:16 pm)
seems to disagree with the dealers who are hoping to be reinstated...
More Detroit 3 dealerships must go, Penske says
DETROIT -- Even with the dealership closures already scheduled by Chrysler Group and General Motors Co., the U.S. auto industry needs fewer dealerships representing the Detroit 3 brands, auto retailing giant Roger Penske told the Automotive News World Congress.
"Many of them can no longer compete," said Penske, 72, CEO of Penske Automotive Group, the nation's second-largest group of dealerships. "We still need to see a further culling of dealerships to make our industry stronger."
The Detroit 3 brands account for 14,000 of the 20,000 dealerships in the United States but just 45 percent of U.S. new-car sales, he said. That equation doesn't work in a retail industry in which consumers are demanding a better buying and service experience, Penske said.
He's right, of course.....and I guess with any hope of help from the federal stimulus gone for dealers, the future seems dim for many of the dealers who are living right on the edge right now.
#673 of 725 Re: Penske [nippononly]
Jan 19, 2010 (6:06 am)
That may be good for the fat cats like Penske. Not so good for the consumer. It is not only the D3 dealerships on the ragged edge. The Toyota dealership I bought from 2.5 years ago has been sold twice since then. We have 12 Toyota dealers in a 35 mile radius. Plus 5 Lexus dealers.
I still think letting them die of natural causes is preferable to some no nothing czar deciding who lives and who dies. If there is a choice, I would buy from the smaller dealer rather than a Penske dealership. If Penske and the conglomerates have their way, there will not be any small independent dealers.
#674 of 725 Re: Penske [nippononly]
Jan 19, 2010 (3:43 pm)
is there a difference between 'new car sales' and 'new vehicles sales'?
local service is a factor, and there are a lot of small dealers around.
if these go away, do you really want to drive 100 miles to service your Camry?
#676 of 725 Re: Toyota dealers put up the white flag [steve_]
Jan 28, 2010 (6:48 am)
More questions than answers from the Mother Ship.
Adams and other Toyota dealers nationwide spent Wednesday talking to concerned owners who wondered whether they should bring their cars in for repairs to correct the gas-pedal problem. About 2.3 million vehicles, including the Corolla sedan and certain Camry sedans, could be affected by the recall.
That is about 200 cars per dealership that need to have the new throttle assembly installed. Add to that the flooring cost and where are all these new throttles going to come from. The supplier can build about 2 million PER YEAR. The cars on the road should get the first 2.3 million units.
How many Toyota dealers will be able to last through this fiasco?