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GM Announces Plan to Address Dealer Concerns

December 3, 2009
2 min to read


DETROIT - GM is announcing that it is prepared to implement a plan that both resolves concerns raised by dealers regarding GM's dealer network restructuring activities and allows it to continue to move forward with a critical component of its long-term viability plan.


GM will begin to implement this plan in mid-January provided that legislation related to GM's dealer restructuring does not move forward. GM says its plan, the result of several months of discussion and constructive engagement among dealer groups and members of Congress, provides complete transparency, face-to-face reviews and binding arbitration, which together, will likely result in some dealers being reinstated.

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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. >/li>

  • 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.

  • 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.


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