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GM allowing axed dealers to apply for a new store

11/11/2009, 5:56 PM

By Mark Kleis

After a highly public and controversial closing of 1,000 General Motors dealerships, GM now says it will be opening a number of new dealerships around the country and is inviting some recently rejected dealership to apply.

Tammy Darvish, a leader of a group of recently rejected dealerships is fighting back as part of The Committee to Restore Dealer Rights.

Darvish said that at least a dozen previously rejected dealerships have received letters from GM inviting them to apply for new dealerships as part of GM’s new expansion plan.

The dealerships which received these letters were spread across Pennsylvania, Illinois, Michigan, Ohio, Colorado and Massachusetts. Based on the areas that received letters, GM is planning on opening dealerships in both rural and metropolitan areas.

Darvish pointed out that not all rejected dealerships are being given an opportunity to apply – some of the rejected dealerships located near the target locations for new dealerships did not receive letters from GM.

Back in September dealer groups including The Committee to Restore Dealer Rights and the National Automobile Dealers Association proposed that rejected dealerships be given first opportunity to be included as new dealership locations.

According to the letter, GM will “select the proposal that it determined was the best one for that particular market.”

“The GM terms are inadequate,” Darvish said.

GM is set to resume settlement talks on Thursday with the dealer groups after a four-week break.

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11/11, 6:10 PM

posted by:

AutoCritical

Seems pretty laborious having to shut down so many dealers, only to re-open them because they wanted to change the terms in a contract….

Wasn’t there a better way?

I do feel sorry for the dealers.

11/11, 6:20 PM

posted by:

idrinorbarsaku

wtf? This makes NO sense!! Why would you shut a dealer down, only to ask the to open again? Are they forcing dealers to build new facilities or something to raise public’s interests, or at least make them look good? Or, are they just now realizing that a lower amount of dealers equals less sales? Either way,
SCREW U GM!!

11/11, 6:25 PM

posted by:

DrFill

Are you a glutton for punishment?
Do you have zero self-esteem?
Never heard of dignity?
Have you lost the respect of your family, and the community at large?
Or are you just afraid of working for a winner?

Well, have we got a job for you!
If you were just fired by us, come on back!
We were just playin’…………..
DrFill

11/11, 6:29 PM

posted by:

DrFill

Now when we invite you in for an interview
And we Tear up you application in your face
And laugh at you for begging us to for a job
Don’t take it personal!

Get a sense of humor!
With Billions in Gubmint tax dollars
We sure did
LOL
DrFill

11/11, 6:33 PM

posted by:

carstuff

Perhaps, well just perhaps, the dealers that are near a new point were poor dealers and that is why they were not invited to quote for a new franchise. Just maybe you know.

11/11, 6:46 PM

posted by:

DenverGuy217

This will become a good subject matter for future discussion in collegiate studies maybe taking the place of the Coke/NewCoke marketing disaster.

Glad to hear that they are thinking of getting back into the rural marketplace. Someone seems to have wised up and looked at territory coverage/profit versus volume sales.

11/11, 6:59 PM

posted by:

ebleyes

If I was a discarded GM dealer I wouldn’t opt to come back, but if I was a desperate GM dealer with no offers from other companies then I’ll jump in.

11/11, 7:02 PM

posted by:

FSVT_ROCK

Question :

Hasn’t GM learn anything yet?

How many more billion tax payer money has to be spend in to the company?

As a tax payer, I’m getting sick tired of this issue and I believe is time for GM to give back our tax payer money. Come on GM grow up.

11/11, 7:45 PM

posted by:

TomF

Completely insane. I’m sure all those Saturn dealers wiped out by GM will be pleased.

11/11, 8:05 PM

posted by:

Borat

I wonder what the invite letter stated:
“Dear Mr & Mrs Schmack,
Yes we facked you royally and cleaned you out like laxative for colonoscopy, but please give us another chance and your dealership deposit

Love GM”

11/11, 8:07 PM

posted by:

e46Ne90

If they’re smart they would opt for different automaker other than gm. let’s think long term here

11/11, 9:07 PM

posted by:

johnnycanuck

I’m going to disagree with most of the sentiment here. Just because of one knee-jerk reaction you can’t really expect them to limp along for the rest of time. Actually this is a little out of character… usually when GM makes a stupid decision they’ll go to any lengths to defend it rather than do something to rectify it. That many dealerships should never have been closed. It was like they wanted to hit the broad side of a barn so they threw another barn at it.

11/11, 11:54 PM

posted by:

armstealer

These aren’t reopenings, they are new dealerships. That is according to the wording of the article, and whatever the difference may be. I am curious to know where in Mass. Anybody know?

11/12, 8:24 AM

posted by:

HoosierHero

Anyone else getting the sense that in 10 years GM will be exactly where they were 2 years ago?? I’d hate to go through this mess again.

11/12, 10:20 AM

posted by:

ajm11

I agree with johnnycanuck on this one. GM initially did close too many dealers. But talking with people in the industry a lot of the dealers that were closed were also the ones that had poor customer service or ones that needed a major overhaul to bring it up to standards. The city which I live in, I can only confirm that one received a letter to close, but from what I have heard and family members experienced that dealer had no customer service skills where as the Pontiac/Buick dealer literally across the street has excellent customer service.

11/12, 11:07 AM

posted by:

carstuff

GREAT JOB AJM!!!

Someone actually had a comment with something to back it up other than their opinion. Come on guys you can do it too.

11/12, 11:30 AM

posted by:

excrement_between_my_toes

I think most of these axed GM dealerships are too pissed off to sell GM cars, Alot of the former GM dealerships have switched to selling Hyundai’s, Honda’s and Toyotas. Thats where the money’s at now. Everyone I know would never buy a GM car for 2 reasons, they hate the company for being so financially reckless and asking for billions of tax payer money to save them, and the other reason is GM’s reputation for questionable quality and reliability. Especially now with GM desperately trying to save money where ever they can, do you want to buy a car thats going to use cheaper materials and workmanship to save some critically needed dollars?? I know I wouldn’t

11/12, 4:56 PM

posted by:

ozyran

I hope those dealerships respond by applying for dealer status with Ford, Chrysler, or, better yet, Honda.

11/12, 7:56 PM

posted by:

DrFill

Carstuff
Calm down!
Is that news to you?
That GM closed a bunch of bad dealers, not good ones?
DrFill

11/12, 8:00 PM

posted by:

rpmfan

@ excrement_between_my_toes

First off, people are ignorant. So don’t even look at a company who’s success will benefit them also? GM and Chrysler would be the 1st and 2nd brands I would look at if I were buying a car. Because by buying their cars, I am only helping get money back from them sooner.

Second, I’m so sick of people talking about the reliability of other manufacturers. I can’t wait for the lawsuits against Toyota start to make their way through the courts. It will be interesting to see what a sketchy company it really is. I predict that Toyota will go from being number 2 to being number 15 in no time.

The whole quality and reliability argument is outlandish in this day and age. Where do you get that last line from? If anything, GM is going to up the ante and put the best materials in their cars. They need sales. Plus, how do you know other manufacturers don’t use cheaper materials?

11/13, 8:38 AM

posted by:

SG328is

Good idea GM. Use that money we gave you to expand and spend money in the wrong areas. You don’t need more dealerships, you closed them for a reason. Where is the regulation in the decisions this company is making? Focus on the PRODUCT and not opening dealerships and “expanding”. How the hell can GM have an “expansion plan” anyways if they don’t have any $$$$$? Oh yeah, they no longer have debt and can now accumulate new debt so this can happen all over again…

So frustrated by this crap.

Buy GM, oh wait, we already did…

 
 
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