GM to close dealerships

[Morepwr]

Originally Posted by franknbeans

will there be a official "list" of the dealerships?

+1 I am dealing with a rather small dealership.

[tones2SS]

Quote:
Originally Posted by franknbeans View Post
will there be a official "list" of the dealerships?

I do believe some of the dealerships will receive that letter today, whether they stay open or close. I heard this on the news today.
Pisses me off to no end.

[1camaro4me]

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.

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.

[2ssJB]

Argh, I read somewhere that the list will not be public. But knowing this forum it should show up here any day now.

[chrisinlittlerock]

Bale Chevrolet is who I ordered from in AR. They have been in business since 1916 and they tell me they are strong. Got my fingers crossed though.

[LikaRokBowTie]

How's it going chris in the rock,I'm thinking this might help with the charging over msrp for some cars because the remaining dealers would have more cars to sell rather than spreading cars thin like now as is the case of the Camaro,unless GM keeps production low which then doesn't give GM the volume sold to make money on the car kind of a double edge sword,your car doesn't hold high resale value if to many are produced and GM doesn't make enough to keep the car in productionhope I'm making sense.

[camarossrs2150]

Originally Posted by Fogey

Purchase agreements will be honored and handled thru another dealer. Deposits are between you and the original dealer. Good Luck! This from a senior and reputable GM guy.

yes but will that dealer sell it to you at the price you got from the first dealer msrp and would it effect his allocations

[Lee9710]

My dealer is the number one Corvette dealer in his region so hopefully he is safe.........also got my fingers crossed. But he already has had his V6 show car since end of April and a couple orders delivered already with 5 more with vins and on the way so I think he will be ok.

[CTS]

I know the owners of a smaller B-P-GMC and they said if they happen to be on the list they are not going out of business. They will sell used cars and do auto repair. The used cars and repair are whats keeping them alive right now, not new car sales. He said they are already seeing parts shortages though. Suppliers are starting to hold back for fear of not getting paid.

They can still get GM auction cars, they just won't get the cream of the crop like a dealer, they have to bid on the open days when all are allowed to compete.

This place been owned by same family since the 1960's and about 10 yrs ago they build a new building under pressure from GM.

[frescolne]

I know this has brought up a bit but I never really got a clear picture or answer to the question. I ordered mine a month ago and signed a sales agreement which was under MSRP, along with a small down payment. My order is next to go to the factory (Next allocation). If my dealer closes, and my order is transferred to another dealer, will I still be able to purchase for the original price I was given. Everything is written out on the agreement including all taxes and everything else and signed by myself and sales person. I'm not sure if it is completely binding. Anybody know if I have a chance of getting screwed here?

[SpeedDemon]

Worst Case Scenario they could say that agrement is only binding between you and the original dealer and they may say they will accept the agrement with a markup in price.lol
But if they are nice and not being Jerks about it, they should just be happy for your business would be my guess. i think theirs always a chance of getting screwed somewhere in anything. I am a skeptic. But as an optimist, i dont see that happening seeing as how you at least have SOME paper work.

[oilman63]

$21,600.00i'm sorry i was gonna say some stuff.but why would you put down so much?