GM's New Plan for Its Dealers

As is the case with its competitor Chrysler, American manufacturer GM announced today a new plan put together to "address concerns raised by dealers and allow GM to continue to move forward with a critical component of its long-term viability plan." The new plan, which will be set in motion in January, is said to allow some of the closed dealerships to be reinstated.

“GM values its dealer body and recognizes the contributions they are making to the future viability of the company, the critical role they play in satisfying customers and their importance to communities across the country. We are prepared to implement this plan so GM and its dealers can channel our full focus on building and selling exceptional cars and trucks with the consumer experience to match,” Susan Docherty, GM vice president of sales said in a release.

The plan put together by GM, together with dealers and under the supervision of Senator Durbin and House Majority Leader Hoyer, calls for the following steps to be taken.

• accelerated wind-down payments to dealers
• a process to resolve open issues identified by dealers related to the wind-down
• 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
• additional evaluation in limited circumstances for complete wind-down dealers who purchased stock, land or dealerships from GM in the last four years.
• 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
• placement assistance for service technicians and other dealership employees

A reaction from both Chrysler's and GM's dealers is expected sometimes today.