What in the USA is going on?
The more I hear about the forced closings of these GM dealerships, the more I want to throw up.
The sensible approach might have been to tell these dealerships that they simply couldn't order more GM inventory. Let the dealerships sell what they have, complete with the warranties. Both the dealership and the automaker would have more chance to make maximum profit. And isn't that what the USA is supposed to be about?
Instead, dealerships have been told they had a certain date to close out business. Sure, after that date they could sell their remaining inventory but they wouldn't be able to offer the GM warranty. And those warranties are a huge incentive to potential buyers.
Furthermore, dealerships are being told they have to sign a certain agreement by this Friday to close out their business. If they sign, they will be held to certain stipulations in the agreement. This includes a 'gag order' whereby they cannot go to the media or any other outlet and complain. This includes a strong warning not to sue the carmaker. If you attempt to, you WILL be liable for GM's legal fees. Furthermore, they have to hand over their customer lists. Excuse me?
NB: when I say close or closure, I mean that the carmakers are yanking the franchise away from the dealership. The dealership could continue to operate, but they would not be able to sell brand new vehicles from that particular carmaker.
These dealerships are not being told WHY they have been singled out for closure. Some of them have been around for 80-90 years, passed down from generation to generation. They've had these GM franchises for almost as long. It is the end of a way of life. And they've been profitable. They've got the awards to show for it. So why are they being singled out and not XY dealership down the road?
Taking away the franchise is more than removing a sign. These dealerships have employees, and provide health insurance, retirement plans, etc. If you suddenly can't sell as many cars and not making as much profit that means possibly letting some folks go. Since the government now effectively owns GM, they are now responsible for jobs being LOST. Then there's the tax revenue that's being lost. These dealerships give millions in taxes to the localities in which they preside. These localities are now being forced to either cut their budgets or increase tax revenue from elsewhere. If your real estate tax goes up, you may want to see if any GM franchises have disappeared from your area. There may be a corrolation.
The sensible approach might have been to tell these dealerships that they simply couldn't order more GM inventory. Let the dealerships sell what they have, complete with the warranties. Both the dealership and the automaker would have more chance to make maximum profit. And isn't that what the USA is supposed to be about?
Instead, dealerships have been told they had a certain date to close out business. Sure, after that date they could sell their remaining inventory but they wouldn't be able to offer the GM warranty. And those warranties are a huge incentive to potential buyers.
Furthermore, dealerships are being told they have to sign a certain agreement by this Friday to close out their business. If they sign, they will be held to certain stipulations in the agreement. This includes a 'gag order' whereby they cannot go to the media or any other outlet and complain. This includes a strong warning not to sue the carmaker. If you attempt to, you WILL be liable for GM's legal fees. Furthermore, they have to hand over their customer lists. Excuse me?
NB: when I say close or closure, I mean that the carmakers are yanking the franchise away from the dealership. The dealership could continue to operate, but they would not be able to sell brand new vehicles from that particular carmaker.
These dealerships are not being told WHY they have been singled out for closure. Some of them have been around for 80-90 years, passed down from generation to generation. They've had these GM franchises for almost as long. It is the end of a way of life. And they've been profitable. They've got the awards to show for it. So why are they being singled out and not XY dealership down the road?
Taking away the franchise is more than removing a sign. These dealerships have employees, and provide health insurance, retirement plans, etc. If you suddenly can't sell as many cars and not making as much profit that means possibly letting some folks go. Since the government now effectively owns GM, they are now responsible for jobs being LOST. Then there's the tax revenue that's being lost. These dealerships give millions in taxes to the localities in which they preside. These localities are now being forced to either cut their budgets or increase tax revenue from elsewhere. If your real estate tax goes up, you may want to see if any GM franchises have disappeared from your area. There may be a corrolation.