Detroit, Michigan – General Motors has announced a comprehensive plan for its U.S. dealers, which it said resolves both concerns raised by dealers regarding restructuring activities, and allows the company to move forward in its long-term viability plan.
The company said that it will begin to implement the plan in mid-January, provided that legislation related to its dealer restructuring does not move forward. GM said its plan offers a more certain and timely process, and the appropriate alternative to address dealer concerns, especially when compared to proposed legislation that would raise a variety of legal and constitutional concerns.
“GM values its dealer body and recognizes the contributions they are making to the future viability of the company, the critical role they play in satisfying customers and their importance to communities across the country,” said Susan Docherty, vice-president of U.S. sales. “We are prepared to implement this plan so GM and its dealers can channel our full focus on building and selling exceptional cars and trucks with the consumer experience to match.”
Plans include a commitment to review the criteria used by GM for dealerships that received a wind-down agreement, and the ability for dealers to proceed to binding arbitration if wind-down dealers are not satisfied with an outcome of a face-to-face review of the criteria. The company will also accelerate wind-down payments to dealers, work with dealers regarding financing issues, offer placement assistance for service technicians and other dealership employees, and in some circumstances where dealerships are established, wind-down dealers will be given the opportunity to submit a proposal.