Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

Sign in to follow this  

GM will require separate showrooms, not buildings, for duals

Recommended Posts

GM will require separate showrooms, not buildings, for duals



DECEMBER 4, 2009 - 11:21 AM ET

General Motors Co. set off alarm bells last month with an erroneous letter to dealers warning they would need to remove non-GM brands from their premises by Dec. 31.

The company now is preparing a retraction. The automaker will only require separate showrooms for GM products, not exclusive properties.

“Dealers who received this letter will get a clarification that will correct it by early next week,” GM spokeswoman Ryndee Carney says.

She declined to say how many dealers received the erroneous letter.

The letter prompted frantic calls to lawyers and dealer associations. It cited the June 1 sales and service agreements GM issued to dealers when the automaker was in bankruptcy. The “participation” agreements spelled out the requirements for dealers GM wanted to keep in its retail network.

The radical requirement on GM-only dealerships was dropped in an amended agreement June 9, which called for separate showrooms for GM products. Dealers could still sell non-GM brands on the same premises.

GM’s letter reads “as if the June 9 agreement does not exist,” says Michael Charapp, a McLean, Va., dealer lawyer.

Three of Charapp’s Virginia and Maryland clients received the letter. The dealers sell non-GM brands at their dealerships, but they have exclusive showrooms for GM products.

“The letters should have cited the June 9 requirement,” Carney says. “It was a mistake.”

Share this post

Link to post
Share on other sites

Your content will need to be approved by a moderator

You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets



Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.