GM, NADA Declare Truce

Following almost a year of acid remarks and accusations, American manufacturer GM and the National Automobile Dealers Association (NADA) declared a truce over the weekend, following a conciliatory meeting.

“We set the tone between GM and NADA that this can't go on anymore,” Mark Reuss, GM North America president said after the meeting, according to Autonews. “I said: ‘I never want to talk about what's in the past anymore. It's all going forward.' ”

The meeting was not only intended to make the two shake hands and make up, but was also used to outline the steps to be taken for such a situation to be avoided in the future.

The most important aspect agreed upon is the insertion of a NADA representative on GM's National Dealer Council. In addition, GM will recognize the dealer attitude surveys NADA prepares for automakers.

To remind you, the relationship between the two sides worsened in December, when NADA announced it is backing dealer arbitration and GM retaliated by canceling its presence at the dealers' convention.

The legislation approved last year will allow for a binding arbitration process for dealers, in an attempt to determine if they should be reinstated.

"The compromise agreement will give affected dealers transparency and the right to arbitrate to regain their dealerships. The arbitrator will balance the interests of the dealer, the manufacturer and the public to reach a decision about whether the dealer should be added to the dealer network," NADA said at the time.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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