GM Dealers Get Ultimatums To Follow New Rules/Not To Hinder Bankruptcy Or Be Shut Down

The Cleveland Plain Dealer Reporter out with a "shocker" disclosing just how much of a political bargaining chip the Big-3 use their dealers as. According to the story, GM sent ultimatums to all of its 6,000 U.S. dealers on Tuesday with the following stipulation "follow our new rules or face almost immediate franchise cancellations in court."

For the 2,000 dealerships targeted to lose their franchises, GM said it would soften the blow if those retailers don't oppose the automaker's restructuring plan.

The dealers that GM is keeping learned that sales quotas will go up, that they might have to remodel showrooms and that selling competing brands at GM stores could be discouraged.

GM has not publicly stated which dealerships will lose their franchises, and that list may never become public. Chrysler's cancellation list came out in court filings, but GM is encouraging dealers to settle out of court.

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Ganley, whose dealership is among the survivors, pointed out that if dealers don't agree to GM's terms, the automaker could cancel their franchise contracts in bankruptcy court. GM said in its filing Monday that it now plans to eliminate hundreds of more dealers, for a total of about 1,500.

In all, the automaker expects to cancel the franchises of about 2,000 stores, including about 500 Saturn, Hummer, Saab and Pontiac dealerships.

Why all the secrecy GM? What kind of pattern are you afraid will emerge if someone puts it all together?

Any GM dealers who have received the FedEx ultra secretive GM termination FedEx and wish to speak out, please contact myself (tyler at zerohedge dot com) or marla (marla at zerohedge dot com). Sphere: Related Content

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