Autoblog

REPORT: Saab dealers 'running out of cars'

Michael Harley — Tue, 17 Nov 2009 10:28:00 EST

Filed under: Car Buying, Plants/Manufacturing, Saab, Earnings/Financials

2010 Saab 9-5 - Click above for high-res image gallery

With new vehicle production at a trickle, and its dealer network slashed by a third, retailers of the Saab brand are finding inventory shrinking to drought levels. Some of the remaining dealers may even run out of new vehicles before replacements arrive.

Point the blame towards the pending sale of Saab to Koenigsegg Automotive AB, and the fact that an all-new Saab 9-5 model is still sitting on the horizon. With the transaction still not complete, financial limitations have kept new vehicle production low. In addition, the Swedish assembly plant tasked to build the new 9-5 sedan is in the process of retooling. "When we close the deal and change owners we can start producing again for real as we then will have financing," Eric Geers, a Saab spokesman told Bloomberg.

Even if the deal with Koenigsegg closes as planned, the 2010 Saab 9-5 (the company's first all-new car in seven years) won't hit European showrooms until early next year. U.S. dealers will likely have to wait even longer, starving as the last of their dwindling inventory rolls away.

Gallery: 2010 Saab 9-5

[Source: Bloomberg]

REPORT: Saab dealers 'running out of cars' originally appeared on Autoblog on Tue, 17 Nov 2009 10:28:00 EST. Please see our terms for use of feeds.

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Koenigsegg reportedly rejects 81 out of 218 U.S. Saab dealers

Michael Harley — Fri, 13 Nov 2009 14:28:00 EST

Filed under: Government/Legal, GM, Saab

2010 Saab 9-5 - Click above for high-res image gallery

According to Automotive News, Federal Express letters arrived at 81 of Saab's 218 dealers on Thursday stating that their franchises had not been selected to move forward and become a dealer for the post-sale entity, Saab Cars North America. The package from General Motors said that Swedish supercar maker Koenigsegg, Saab's buyer, had selected only certain stores based on its business plan requiring strong, well-located dealers showing profits and high volume.

All Saab dealers signed termination agreements in June when GM entered bankruptcy. The dealers who received reject letters today will follow the terms of those agreements. Meanwhile, the remaining 137 U.S. Saab dealers will have to wait patiently until the end of November when the sale is scheduled to close (although those close to the deal say it may take longer). Current Saab dealer contracts with GM will not expire until October 2010, at which point the remaining dealers will sign new franchise agreements with Saab Cars North America.

Gallery: 2010 Saab 9-5

[Source: Automotive News, subs. req'd]

Koenigsegg reportedly rejects 81 out of 218 U.S. Saab dealers originally appeared on Autoblog on Fri, 13 Nov 2009 14:28:00 EST. Please see our terms for use of feeds.

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VIDEO: 1977 Dodge Colt dealer film is a completely amazing time capsule

Jonny Lieberman — Wed, 28 Oct 2009 16:56:00 EST

Filed under: Classics, Coupe, Budget, Etc., Marketing/Advertising, Videos, Dodge

1977 Dodge Colt Mileage Maker Coupe - Click above image to watch the video

The year was 1977 and the world wasn't as bright a place as it could have been. The Sixties were officially long dead and buried, the national speed limit had the cruise control set at 55 mph, the Son of Sam was on the loose, Elvis died, and Hay-on-Wye's succession from Britain turned out to be a fake. But things weren't all doom and gloom. Star Wars debuted to much fanfare, the Porsche 928 debuted in Geneva and the Sex Pistols release their first and only album, Never Mind the Bollocks... But there was something else, too. No, not the ever present use of a wah-wah pedal.

That's right, the 1977 Dodge Colt - huzzah! And not only did the Colt exist, but if you went to your friendly neighborhood Dodge dealer, odds are good that they would have had a certain promotional film on display. One that extolled the virtues of said Dodge Colt over the competition. Namely, the Datsun B210, Chevrolet Vega and Chevette and of course, the Ford Pinto. And dude, is this film thorough. Not only does the announcer trash the Pinto's looks (talk about pointing a shotgun at a bucket full of fish!), but its back seat as well. And yeah, man - you're just going to have to see the Colt's backseat for yourself (Spoiler Alert - that dude is totally going to score).

There are a few surprises in the film. We simply have a hard time believing that cigarette lighters weren't standard equipment in 1977, if not federally mandated by our Southern congressmen. Also, if the MPG numbers seem a little insane, there's a reason. First, cars didn't weigh anything back in 1977 - safety was still optional. Second, the EPA formula has been rejiggered considerably since then. Also, yes, "Silent Shaft" does mean Mitsubishi 4G engines. Finally, we're as shocked as you are that the Chevette didn't throw a rod driving into the shot. Enjoy the video after the jump.

Continue reading VIDEO: 1977 Dodge Colt dealer film is a completely amazing time capsule

VIDEO: 1977 Dodge Colt dealer film is a completely amazing time capsule originally appeared on Autoblog on Wed, 28 Oct 2009 16:56:00 EST. Please see our terms for use of feeds.

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REPORT: Credit lines increasingly hard to come by for auto dealers

Jonny Lieberman — Thu, 03 Sep 2009 10:32:00 EST

Filed under: Car Buying

Like him or loathe him, George W. Bush's clearest, most salient speech came almost a year ago on September 25, 2008 when our Harvard MBA president explained to the nation and the world exactly how bad the economy had gotten and why so much federal money ($700 billion-ish at the time) was being hurled at America's banks. The full speech can be found here, but one little section bears quoting:

The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses... Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt.

While there have been signs of those gears getting a little bit of oil, certain sectors of the economy remain firmly stuck. Or as CNNMoney puts it, "auto dealers are in their own special financing hell." How so? It's a toxic combination to be sure. A car dealership's inventory is much more expensive than other small businesses (like, say, The Yarn Depot). Additionally, the economy as a whole is still fairly south of the border so despite Cash for Clunkers, millions of people aren't buying expensive things. Then, of course, the banks that lend the money are themselves going belly up, almost 80 so far in 2009 alone.

To address the lose-lose situation, the Small Business Administration (SBA) is trying out several programs designed to help out dealerships. One such initiative sees the SBA backing the auto dealer loans. So far, only one dealership has qualified. The problem is that car dealers require a special type of loan known as a floor plan loan, and the SBA's program doesn't cover floor plan loans. These special loans allow dealers to repay the loan as the inventory sells, instead of on a monthly basis. And as inventory isn't moving like it used to, banks aren't keen on making any floor plan loans.

[Source: CNN Money | Image: Hulton/Getty]

REPORT: Credit lines increasingly hard to come by for auto dealers originally appeared on Autoblog on Thu, 03 Sep 2009 10:32:00 EST. Please see our terms for use of feeds.

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REPORT: Just 5.7% of dealers have gotten cash for their clunkers

Chris Shunk — Thu, 03 Sep 2009 06:42:00 EST

Filed under: Car Buying, Government/Legal

When Cash for Clunkers was announced, most everyone was so fixed on government subsidies and the potential for a sales uptick that one big obstacle was apparently largely overlooked. How and when would dealers get paid? A couple weeks after the program officially ended, we're beginning to get an idea, and the answer is "slowly." According to Automotive News, a survey by the National Automotive Dealers Association on August 27 says that only 5.7% of all clunker transactions have been reimbursed. That's but a fraction of the nearly 700,000 overall C4C deals, a number that has dealers around the country smarting. Michigan Representative Michael Rogers reportedly told Automotive News that he asked the Transportation Department about the 5.7% number, and the department countered that it thought the number was closer to 10%.

Anyone looking for the pace of Clunker reimbursements to uptick will likely be disappointed as well, as the study also shows that 83.7% of all clunker apps are still under review. Further, 6.3% of claims have reportedly been rejected, and NADA says that the dealers aren't even being given a reason why. The Obama Administration insists that all approved C4C transactions will be reimbursed, while rejected claims can be resubmitted. While it's no surprise that the government isn't able to move quickly to reimburse dealers, it does astound that the apparent administrative incompetence of C4C cost $100 million.

[Source: Automotive News - subs req'd | Image: Justin Sullivan/Getty]

REPORT: Just 5.7% of dealers have gotten cash for their clunkers originally appeared on Autoblog on Thu, 03 Sep 2009 06:42:00 EST. Please see our terms for use of feeds.

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Going for Gold: Toyota dealers reportedly price gouging on 2010 Prius

Jonathon Ramsey — Wed, 26 Aug 2009 16:57:00 EST

Filed under: Car Buying, Hybrid, Hatchback, Toyota, Earnings/Financials

2010 Toyota Prius - Click above for high-res image gallery

The last time we heard about gouging on the Toyota Prius was, oh, just last summer when gas prices put the frugal flyer at the top of shopping lists. Things were so bad then that used Priuses were going for more than new models because dealers couldn't keep the fresh stuff in stock.

Cash-for-Clunkers appears to have had the same affect on some Toyota dealers this summer. Even though cars like the Ford Fusion and Toyota Corolla grabbed the top slots and headlines, the Prius was so popular as a swap-car that dealers again ran short on inventory. Daily Tech reports that the tight supply llead some dealerships to start adding a Market Value Adjustment (MVA) to the MSRP of up to $5,000.

It wasn't all Toyota dealers that took to making dough while the sun shone, of course - and the gist of the story appears to be that if you really want a Prius, shop around for MSRP and you'll probably find it. In the long run, until the Prius gets some real competition for the mantle of Greenest Thing on Earth, be ready to hear this story again.

Gallery: 2010 Toyota Prius

[Source: Daily Tech]

Going for Gold: Toyota dealers reportedly price gouging on 2010 Prius originally appeared on Autoblog on Wed, 26 Aug 2009 16:57:00 EST. Please see our terms for use of feeds.

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Dealer poll calls Cash for Clunkers a 'Nightmare,' four out of 10 didn't want program extended

Chris Shunk — Tue, 25 Aug 2009 15:30:00 EST

Filed under: Car Buying, Government/Legal

Conventional wisdom says that Cash for Clunkers provided a big-time boost to dealers. After all, before Clunkers, most showroom floors were bereft of customers, and scores of dealerships were closing their doors. As good as C4C has been for customers, many dealers are all too happy it's over.

A recent (admittedly unscientific) survey conducted by Automotive News shows that 44% of the 800 dealers polled wouldn't want C4C to be extended again, even if the program was modified. Only 3% felt that the program should have been extended without being modified. The biggest issue dealers have with C4C is, unsurprisingly, its lack of timely payment. Some multi-store dealers have millions invested in the program, while little or no money has come in yet. An alarming 23% of dealers say they have had to borrow money to cover the cash crunch left in the wake of the Clunkers program, while an additional 10% say the program has actually sucked enough cash from the coffers that it has put the dealership at risk.

The Transportation Department and the Obama Administration have stated that every eligible C4C transaction will result in payment, but the federal guarantee isn't boosting many dealers' confidence. AN says that 43% of dealers surveyed aren't very confident that they'll receive all of their C4C dollars, while an additional 18% are not at all confident that they'll be paid in full.

Some dealers say that C4C has also hurt their repair, finance, used car and parts businesses, but that's okay if they collect from the feds. Even with the considerable downside of C4C, 74% of dealers say that if they're paid in full by the federal government, the program will positively affect their bottom line, while 5% say they somehow managed to lose money.

Cash for Clunkers officially ended last night at 8 pm.

[Source: Automotive News - Sub. Req. | Image Source: Ethan Miller/Getty]

Dealer poll calls Cash for Clunkers a 'Nightmare,' four out of 10 didn't want program extended originally appeared on Autoblog on Tue, 25 Aug 2009 15:30:00 EST. Please see our terms for use of feeds.

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VIDEO: Priceless 1989 Ford dealer training films offer timeless amusement

Jonny Lieberman — Thu, 20 Aug 2009 19:30:00 EST

Filed under: Car Buying, Etc., Videos, Ford, Humor

1989 Ford dealer training clip - click above image to watch the videos

Y'all remember Robocop? You know, the really excellent Eighties action masterpiece about a shot-to-hell cop that comes back as a bulletproof robot to rid Detroit of über baddies like the ruthless Clarence Boddiker and super villain Dick Jones? Well, what you may not remember about Paul Verhoeven's 1987 masterpiece is all the social satire. From the 6000 SUX (8 mpg!) to the slaps at very privatized health care (Jensen Sport model heart!) to the Nuke 'Em family home game, the satire was rich and sardonic.

But where did Verhoeven get the fodder for his gags? Dunno, but it's been said that 49% of the population doesn't get sarcasm. Which explains how these 1989 Ford dealer training ads got made. Someone at Ford saw Robocop and said, "Yes! That's the medium we've been looking for." Don't believe us? Make the jump and watch two of them (one on the Festiva and Escort, and another on the Crown Victoria) for yourself.

[Source: YouTube via Michael Banovsky]

Continue reading VIDEO: Priceless 1989 Ford dealer training films offer timeless amusement

VIDEO: Priceless 1989 Ford dealer training films offer timeless amusement originally appeared on Autoblog on Thu, 20 Aug 2009 19:30:00 EST. Please see our terms for use of feeds.

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GM to reimburse dealers until Cash for Clunkers rebates arrive

John Neff — Thu, 20 Aug 2009 10:29:00 EST

Filed under: Car Buying, Government/Legal, GM

If there's one thing that General Motors knows right now, it's that Cash for Clunkers is good for business. The automaker announced earlier this week that it was adding shifts at several assembly plants to increase production of popular vehicles in response to the program's success. So it would be a bad thing if, as the National Automobile Dealers Association has requested, the government suspended the program until it could sort out how many vehicles have been sold, how many rebates are owed dealers and, most importantly, how much of the government's $3 billion in funding is left.

But we've got trouble brewing thanks to the government's inability to process reimbursement requests from dealers fast enough. The backlog of requests continues to grow, and no one knows where in the pile the funding will run out. So, some dealers are voluntarily pulling out of the program now before they get stuck paying for rebates that won't be reimbursed.

This is the last thing GM wants its dealers to do, so it's stepping up to bridge the gap between the time a dealer submits a request for reimbursement and the government gets around to paying it. GM will begin providing cash advances equal to the amount of C4C rebates ($3,500-$4,500 per vehicle) to its dealers for every vehicle already sold under the program and any new transactions going forward. According to GM, that should give each dealer enough liquidity to keep operating while waiting for the government to cut a check.

Of course, since GM accepted billions of dollars in federal loans to avoid bankruptcy and then, after entering Chapter 11 bankruptcy anyway, emerged as partly owned by the U.S. government, the money's really all coming from the place. It just seems that GM has a better accounting department than the U.S. Treasury.

[Source: General Motors | Photo by Ethan Miller/Getty]

Continue reading GM to reimburse dealers until Cash for Clunkers rebates arrive

GM to reimburse dealers until Cash for Clunkers rebates arrive originally appeared on Autoblog on Thu, 20 Aug 2009 10:29:00 EST. Please see our terms for use of feeds.

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Report: Some dealers making C4C shoppers sign rebate payback contracts

Chris Shunk — Fri, 14 Aug 2009 10:57:00 EST

Filed under: Car Buying, Government/Legal

Some car dealerships have a lousy reputation in the honesty and integrity department, and often the rep is well earned. It's unfortunate for the honest dealers out there, but every time a slimy story surfaces, it casts a bad light on the entire business of selling cars. With Cash for Clunkers adding over 300,000 sales in just a few weeks, some issues were bound to occur, and it appears that consumer advocates have turned on the black lights at the roach hotel.

Consumer Action in San Francisco is among the groups that's complained to the federal government about a questionable C4C practice that is reportedly being carried out by some dealers. Angry customers have reported that dealers are demanding they sign waivers relieving the dealerships of any financial risk from C4C deals in the event that a trade-in is rejected by the federal government for its rebate. In one case, a woman in South Carolina signed one of the agreements, and when the vehicle she turned in didn't qualify, the dealer reportedly demanded $2,500.

These contracts are being issued at some dealerships in spite of a government advisory stating that consumers are not required to sign such agreements. Dealerships say that the forms have become necessary due to the slowness of the government in reimbursing the C4C money.

Consumer Action told the LA Times that it has only seen "20 or 30" complaints so far out of 300,000 C4C transactions, so it's difficult to determine how wide-spread the matter actually is. Chances are that far more customers have had to sign the forms than that, though, as the majority of C4C transactions are likely being approved by the government, rendering the documents irrelevant.

It's also not entirely accurate to state that dealers are "forcing" customers to sign the forms, considering the fact that car buyers have every right to walk away from the deal instead of signing the forms. What bothers us is that dealers should be all too aware of which vehicles qualify under C4C, and customers are depending on them to get these matters right. After all, it's not like the customer can ask for their vehicle back after it's engine has already taken a Sodium Silicate bath.

[Source: LA Times | Photo by Ethan Miller/Getty]

Report: Some dealers making C4C shoppers sign rebate payback contracts originally appeared on Autoblog on Fri, 14 Aug 2009 10:57:00 EST. Please see our terms for use of feeds.

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REPORT: Cash for Clunkers could be dead tonight [UPDATE]

Jonny Lieberman — Thu, 30 Jul 2009 20:05:00 EST

Filed under: Car Buying, Classics, Government/Legal

Congress allocated close to $1 billion for the Cash for Clunkers program. That's billion with nine zeros. And all that money might be gone by midnight tonight. This, according to reports by both the Detroit Free Press and Edmunds AutoObserver. We learned earlier that the C4C program has proved to be much more successful than initially thought, with 22,782 consumers taking advantage of between $3,500 to $4,500 federal duckets for their old "clunkers" during the programs first five days. In fact, so many people are taking the feds up on the deal that dealers are worried they are going to lose track of all the trade-ins. The Department of Transportation (DOT) could announce the suspension of the program as soon as tonight. In fact, they could announce that all the money is gone and the program is over. We gotta wonder what John Maynard Keynes would make of all this.

UPDATE: As of 9:41PM EST, the Detroit Free Press is reporting that White House administration officials alerted Congress this evening that the Cash for Clunkers would be suspended, though White House officials have denied the report. Confusion is running rampant at this point, but it seems that the $950 million allocated for reimbursement of passenger car and light truck rebates is all but gone and government officials will spend Friday figuring out how to find more money for the program and untangle the reimbursement process for dealers.

[Sources: FREEP, AutoObserver | Image Source: Theo Heimann/Getty]

REPORT: Cash for Clunkers could be dead tonight [UPDATE] originally appeared on Autoblog on Thu, 30 Jul 2009 20:05:00 EST. Please see our terms for use of feeds.

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Cash for Clunkers racks up 22,782 trade-ins and $95.9 million so far

Chris Shunk — Thu, 30 Jul 2009 16:29:00 EST

Filed under: Car Buying, Government/Legal

When the government's Cash for Clunkers program returned 4,026 orders on its first full day of availability, some were surprised by the speed with which the sales booster took off. After only five days, the program seems to have picked up steam rather than lost it: 22,782 trade-ins have funneled through dealer lots in the 3-4 days since Monday when the program began. So far, dealers have requested $95.9 million in reimbursement money from the government, or about 10% of the funds that were supposed to keep the program running into November. The cars.gov website currently shows $75 million left for CAT3 trucks and $779 million out of $1 billion for everything else.

So far, the average rebate value is reportedly $4,209, which means most customers are eligible for the $4,500 voucher that requires a new vehicle purchase with a 10+ mpg improvement verses the model being traded in. Tuesday was the busiest day so far, with $51 million worth of reimbursements filed by dealers, and there were $27 million filed on Wednesday.

The National Automotive Dealers Association says the program will likely run out of money well before the November deadline. If C4C continues at its current pace, the program could end as early as September. According to the National Highway Traffic Safety Association, some 23,000 dealers have submitted registrations and 19,328 have been approved.

[Source: Automotive News, sub. req'd]

Cash for Clunkers racks up 22,782 trade-ins and $95.9 million so far originally appeared on Autoblog on Thu, 30 Jul 2009 16:29:00 EST. Please see our terms for use of feeds.

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REPORT: Mahindra capitalizes on Detroit 3 dealer closings, picks up new outlets

Chris Shunk — Fri, 19 Jun 2009 07:57:00 EST

Filed under: Truck

Many communities have felt the sting of closing dealerships, but it appears for some that ~~capitalism~~ Mahindra is coming to the rescue. The Indian truck manufacturer is sweeping in to sign up recently booted Chrysler dealers to sell their fuel efficient diesel pickups. Mahindra is hoping to soon have 300 dealers online and ready to sell the inexpensive trucks. Mahindra had earlier announced that it had over 300 dealers signed up to sell the truck, but the difficult economy and a lack of available credit likely prevented many from having a dealership online in time for the truck's fall introduction. The experienced, ready-for-business Chrysler dealerships are like a gift placed in the lap of the Indian truck maker.

In the Detroit area, the Detroit Free Press is reporting that two former Chrysler dealers will begin selling the truck this fall. The Mahindra truck will exclusively contain 2.2-liter diesel powertrains mated to six speed transmissions. The trucks should easily be able to hit 30 mpg on the highway, while also giving owners the ability to carry a 1.3-ton payload. The Mahindra truck will also cost 10-15% less than comparable Japanese offerings.

The Free Press also reported that Mahindra is planning a diesel-powered SUV for mid-2010. The SUV will reportedly have a price tag in the $13-15k range.

[Source: Free Press]

REPORT: Mahindra capitalizes on Detroit 3 dealer closings, picks up new outlets originally appeared on Autoblog on Fri, 19 Jun 2009 07:57:00 EST. Please see our terms for use of feeds.

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GM grants reprieve to 30 dealers, reviewing more

Jonathon Ramsey — Thu, 11 Jun 2009 10:29:00 EST

Filed under: GM, Earnings/Financials

General Motors wants to shrink its dealer network by around 2,500 outlets and has sent closure notices to more than a thousand already. Still, the General has left a door open that allows affected dealers to appeal the decision and show proof of why they should not be cut from the herd.

According to reports, almost the entire affected body of dealers appealed, and 500 of those appeals are still pending. Thirty dealers have had their sentences overturned and will be allowed to stay open. It is good news for the dealers... and yet the math remains the math: strorefronts have got to go.

[Source: Automotive News, sub. req'd | Photo by MARK RALSTON/AFP/Getty]

GM grants reprieve to 30 dealers, reviewing more originally appeared on Autoblog on Thu, 11 Jun 2009 10:29:00 EST. Please see our terms for use of feeds.

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Under Fire: GM targeting metropolitan Cadillac dealers for closure?

Jonathon Ramsey — Tue, 09 Jun 2009 09:58:00 EST

Filed under: Cadillac, GM

Cadillac is one of the core brands that will form the new General Motors, but the dealership network can't continue in its current guise, according to GM sales head Mark LaNeve. There are 1,422 Cadillac dealers nationwide, more than four times the number of Mercedes-Benz dealers and more than six times the number of Lexus dealers. That kind of saturation meant that in 2008, the average Cadillac dealership did one-sixth the business of a Mercedes dealer and one-tenth the business of a Lexus dealer.

To be fair, Cadillac has fewer cars on offer than Mercedes, BMW, or Lexus. Still, GM wants to gets its dealer volume numbers closer that of the competition - proportionally speaking - and that means more dealer closings. GM hasn't said how many, but to even get close to retail parity they'd be looking at many hundreds of closures, with many of them likely to be in metropolitan areas. Whenever those dealers are chosen, as with the others, they will be allowed to remain open until their franchise agreements on October 31, 2010.

[Source: Automotive News - Sub. Req.]

Under Fire: GM targeting metropolitan Cadillac dealers for closure? originally appeared on Autoblog on Tue, 09 Jun 2009 09:58:00 EST. Please see our terms for use of feeds.

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Dealer Bailout: Chrysler to redistribute all new inventory

Jonathon Ramsey — Mon, 08 Jun 2009 17:27:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials

After the suggestion of Congressional hearings on the matter, Chrysler's Jim Press assured Senator Kay Bailey Hutchison (R-TX) that Chrysler dealers with leftover inventory after June 9 would "receive a fair and equitable value." It appears that Chrysler is making good on that promise.

The company's head of sales, Steven Landry, outlined the measures being taken to relieve shuttered dealers of their wares and remunerate them for it. Of the 42,000 cars held by the 780 dealers whose franchises were nixed, 26,000 of them have been sold. The rest, save for 220 cars, have been assigned to be moved to dealers that are still in business. Those last 220 cars are in the possession of dealers who haven't yet agreed to Chrysler's plan, but the cars already have new dealer homes waiting if and when things are agreed.

As for payment, after the cars arrive at their redistribution point, the new dealer's finance company will pay off the old dealer's finance company for an inventory acquired, save for $350 in destination fees. All else, according to Landry, including holdback and advertising funds, will be repaid. There is at least a little good news to start the week...

[Source: Automotive News, sub. req'd | Photo by Scott Olson/Getty]

Dealer Bailout: Chrysler to redistribute all new inventory originally appeared on Autoblog on Mon, 08 Jun 2009 17:27:00 EST. Please see our terms for use of feeds.

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Dealer still pitching cars from the afterlife?

Jonathon Ramsey — Sat, 06 Jun 2009 19:57:00 EST

Filed under: Etc., Hummer, Humor

On April 8, 50-year-old Charles P. Dimmick died doing what he loved to do: watching his favorite driver, Jeff Gordon, run in the Phoenix round of NASCAR. Dimmick was also the marketing manager at Lund Cadillac Hummer Saab in Phoenix, and if you believe the person who wrote his obituary, he also loved to sell cars.

In the notice itself (after the details of his death and before the details of the wake), was this line: "We are sure he would still want all to know that 0.9% financing is still available on all New 2008 Hummer H2's." It isn't clear who wrote the obituary, but tasking someone with selling H2 inventory even after they die sounds a bit like something Dante might be involved in.

[Source: Yahoo!]

Dealer still pitching cars from the afterlife? originally appeared on Autoblog on Sat, 06 Jun 2009 19:57:00 EST. Please see our terms for use of feeds.

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GM to get tough with dealers during bankruptcy

Chris Shunk — Wed, 03 Jun 2009 09:33:00 EST

Filed under: Government/Legal, GM

General Motors is going to right-size its dealer body as part of its bankruptcy, and the Detroit automaker is going to ask plenty of dealers that make the cut to remain with the "new" GM. The General has already announced that 1,124 dealerships wouldn't be renewed in October 2010, and another 200 franchises will receive similar notices this week.

GM VP Mark LaNeve told Automotive News that the remaining GM retail outlets would need to sign a participation agreement to stay off the endangered species list. The agreement will guarantee that the dealers will make required facility upgrades and reach customer satisfaction objectives. Surviving dealers will also need to remove all non-GM vehicles from the showroom. If the dealers refuse to sign the participation agreement by a mid-June deadline, they will be cast into the "old GM" bin, and the dealerships will be terminated in a manner similar to the 789 Chrysler dealers that will cease to exist on June 9.

The 1,324 dealers that are scheduled to go away in 17 months will also need to sign an agreement to avert an early closure. The "wind down" agreement will enable the dealerships to receive money from GM for inventory for unused inventory and leftover parts and signage. In return, the dealers will not be able to sue the General. Some dealers will even be paid up front for their loss, while others will receive money closer to October 2010. Dealers that refuse to sign the wind down agreement will lose their franchise soon after the mid-June deadline.

[Source: Automotive News - Sub. Req. | Image Source: Mark Ralston/Getty]

GM to get tough with dealers during bankruptcy originally appeared on Autoblog on Wed, 03 Jun 2009 09:33:00 EST. Please see our terms for use of feeds.

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REPORT: GM preparing to give more dealerships the axe

Jonathon Ramsey — Fri, 29 May 2009 18:29:00 EST

Filed under: Car Buying, GM, Pontiac, Earnings/Financials, Rumormill

On top of the 1,124 General Motors dealers that will be closed next year, the ailing automaker is reportedly going to announce another round of dealer closings on Monday when its bankruptcy declaration is expected. According to two Automotive News sources, 450 dealers will not see their dealer franchises renewed. For his part, Mark LaNeve, GM's VP of North American sales, said the number would be "less than half that."

No matter the number, it's more of the same bad-yet-necessary news being spread around. LaNeve notes that the dealers who won't be renewed "have very specific issues" including "specific performance issues." Among them are supposed to be some stores that are skewed exclusively or heavily Pontiac. These dealers will be shutting up shop when their franchise agreements expire in October 2010.

[Source: Automotive News -sub req'd | Image: Mark Ralston/Getty]

REPORT: GM preparing to give more dealerships the axe originally appeared on Autoblog on Fri, 29 May 2009 18:29:00 EST. Please see our terms for use of feeds.

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GM and Chrysler CEOs called to D.C. to explain dealer closings

Jonathon Ramsey — Tue, 26 May 2009 08:29:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

The situations with GM and Chrysler are beginning to look like what happens after a fumble in an NFL game: a dozen men pile on top of each other all trying to get the ball. The difference in the case of GM and Chrysler is there are far more than two teams struggling for the prize. The latest to hop on and shove a hand in is the Senate Commerce Committee, which wants the CEOs to testify "early next month" regarding the planned dealership closings.

Chrysler's sent 789 dealers eviction notices, GM is out to dispatch 1,124 dealers in the US and about 245 in Canada. The GM dealers won't have their franchises renewed as of October 2010, and are said to be staying in operation until they sell the last of their inventory. Chrysler dealers are expected to board up the windows by June 9, although Jim Press recently gave assurances that there will still be help given to those dealers after that date. The Commerce Committee isn't moved by either proposal, citing what it calls "the short and insufficient transition period given to dealerships for franchise terminations."

The hearings would be chaired by Senators John Rockefeller and Kay Bailey Hutchison, and will address what happens to dealer inventory and jobs and consumer needs like warranties and servicing. Hutchison was working on legislation to force automakers to give dealers 60 days notice before closing their franchises (which GM has done) or else go without government help. That legislation was put on hold after Press' letter, but now Nardelli and Henderson will need to go explain things to the principal in person.

For GM it's just one more thing to lump into the impending bankruptcy in-box. For Chrysler, every additional delay in sorting out its business situation only gives Fiat more of those pre-wedding jitters.

[Source: Automotive News - Sub. Req.]

GM and Chrysler CEOs called to D.C. to explain dealer closings originally appeared on Autoblog on Tue, 26 May 2009 08:29:00 EST. Please see our terms for use of feeds.

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