Quote:
Originally Posted by franknbeans
it's going to happing. . all the big wigs sold their stock . . . .
also from my understanding on the dealerships is....
GM can not "close" the doors on a dealership. They are not going to renew the franchise license. The franchise agreements end October 2011.
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If (when) GM files Chapter 11, they can effectively "close" the door on any dealership in a very short period of time. Chapter 11 gives them the ability to dissolve or re-negotiate any contract. Including a franchise agreement.
GM cannot shut down a dealer directly, the dealerships aren't owned by GM. However, what will a dealer do if (for example) at some point after June 1st, GM doesn't sell him any cars or parts, revokes all licenses to trademarks and copyrights, does not pay the dealer for any warranty work, or send the check for past rebates and incentives?
It's one thing to be optimistic that this will all work out in the end. It's unrealistic to think there won't be a lot of carnage along the way.