Huffington Post Compiling List of Guillotined GM Dealers
May 19, 2009
Although General Motors Corp. has not made public the names and locations of the more than 1,100 dealers with whom the company plans to part ways by 2010, the Huffington Post is running an ongoing list of dealers known to have received the dreaded FedEX package notifying of GM's intent to not renew the dealer's franchise.
Some dealers have openly disclosed the news about GM's notification of non-renewal, often speaking to local media. The Huffington Post is compiling the list of GM dealers slated for closure from those reports and also is asking readers to submit news of dealers known to be earmarked for franchise termination. That story and the current list can be found on HP's Web site.
As of early this week, the Huffington Post detailed dozens of dealerships slated for termination, but the list was a fraction of the total number of dealers with whom GM will not renew franchise contracts, which represents about 20 percent of the total number of GM dealers in the nation.
Various media reported dealers and their principals as saying they planned to fight the decision not to renew franchise agreements, the promise of a legal labyrinth that could take years and billions of dollars to unwind -- but the prospect of numerous individual legal actions could be all but erased if GM declares its intent to restructure under Chapter 11 bankruptcy rules at the end of the month.
GM's bankruptcy would allow it to negate individual states' franchise-protection laws that under now have been a powerful disincentive to cancel dealer franchises under almost any circumstance.
Posted by Michelle Krebs at 4:32 AM under GM , In the Media | Comments (0) | digg this | Seed Newsvine
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