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Old 05-03-2009, 12:23 AM   #38
fbodfather


 
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Join Date: Oct 2006
Location: Seven Fields, PA (Pittsburgh)
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Quote:
Originally Posted by DeathChill View Post
Isn't that because of the contracts that GM created with the dealerships? What stops GM from destroying these contracts in bankruptcy and creating company owned dealerships?

The company owning the dealership would result in a set price (yay) with accountability from GM. None of this, "We can't do anything!"

I know it's a tall order but it's not like GM really has much to lose at this point. The current system is really, really awful.

NOTE: I know it's not ever going to happen, but it really would make sense for a company to want to control the way their customers purchase and interact with their products.

Go back and read what I wrote --

Yes -- GM COULD destroy contracts with dealers if they go Chapter 11 -- which would allow GM to reduce the number of dealers - -- BUT --

(and this is what I wanted you to re-read



The franchise laws in all 50 states strictly prohibit the manufacturer from selling directly to the customer.


This is not something GM dreamed up.

Each state passed franchise laws in the early to mid-20th century........


Soooooo.........if you don't like them.....(...and GM doesn't!) -- start a ground-swell in your state to have them overturned!
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