When General Motors announced a couple of weeks ago that it had completed the arbitration process with all of its discontinued dealers, the automaker no doubt hoped that its painful retail shrinkage process was over. But sadly, it was not to be – Rally Auto Group of Palmdale, CA, is apparently not quite ready to call it quits.
We have no proof that General Motors is getting payback on the three dealers who founded the Committee to Restore Dealer Rights (CRDR), Tammy Darvish, Jack Fitzgerald and Alan Spitzer. But we do know that retribution is a game often played by all sides, and that Darvish, Fitzgerald and Spitzer definitely believe GM has taken the first shot.
According to Automotive News (which is citing four separate yet unknown sources), General Motors is preparing to reinstate more than 580 dealers that had applied for government-mediated arbitration to keep their franchises in the United States. For those keeping track, 580 represents exactly half of the 1,160 dealerships that signed up to go through the arbitration process. These selected dealerships would potentially be reinstated outside the process of arbitration.
Back in May, General Motors announced plans to close down a large portion of its dealership network. Since then, a number of those franchisees have lodged complaints to both the automaker itself and appropriate policymakers, leading to possible legislation on how GM is allowed to handle the closing of dealerships. This being the case, The General is proactively drafting a new set of rules as to how it will deal with these to-be-shuttered dealerships, and it promises that some are likely to be re
General Motors' bankruptcy lasted all of 42 days, and the General got a lot of liabilities off the book in that short window of opportunity. One of the more controversial moves was to give 1,300 dealers across the US a pink slip post-dated for October 2010, bringing the Detroit, MI-based automaker down to a more manageable 3,600 retail outlets. The move rankled local communities and lawmakers alike, as tens of thousands of jobs will soon disappear. GM says the move will save them bushels full of