General Motor is attempting to cushion the blow of dealers losing their franchises as part of the automaker's bid to pare down its network. According to Automotive News, the bankrupt automaker is offering some dealerships between $100,000 to $1 million to assist in the "wind down" of their businesses. In the case of Pontiac-specific dealers, GM is offering between $10,000 and $200,000.
The money is apparently intended to help dealers (whose franchises won't be renewed following their Oct. 31 expiration dates) sell off their remaining inventory. Interestingly, as part of accepting the funding, dealers must agree to stay open until January (yet they cannot order new product), and they must agree not to sue The General until after their franchise agreement expires.
Source: Automotive News | Image: Scott Olson/Getty]
The money is apparently intended to help dealers (whose franchises won't be renewed following their Oct. 31 expiration dates) sell off their remaining inventory. Interestingly, as part of accepting the funding, dealers must agree to stay open until January (yet they cannot order new product), and they must agree not to sue The General until after their franchise agreement expires.
Source: Automotive News | Image: Scott Olson/Getty]
Sign in to post
Please sign in to leave a comment.
Continue