GM sues some of its dealerships for failing to meet performance targets

Article by Christian A., on July 24, 2012

Dozens of General Motors dealerships were told that they may keep their franchises but a few dealerships that had failed to meet their 2011 targets weren’t so fortunate. GM moved to take back their franchises. GM has filed federal lawsuits against at least eight dealerships, asserting that these stores didn’t meet the performance targets they agreed upon two years ago.

At that time, GM had entered settlements with around 120 dealerships. Instead of continuing with arbitration, GM decided to reinstate their franchises on a probationary basis. These stores were included in 700 other dealerships that filed for arbitration after GM hoped to achieve a wind-down as an element in its bankruptcy restructuring in 2009.

To sum it up, GM sought to eliminate 2,064 dealerships. Under the settlement deal, GM demanded that stores make new business plans and achieve individual targets for 2011, such as attaining sales targets. GM spokeswoman Ryndee Carney said that most of the dealerships have achieved their criteria and won’t have to relinquish their stores. Under the lawsuits filed in June and July, GM is exercising an option to buy the assets of the few that had failed to reach GM’s criteria.

Topics: gm, dealership, lawsuit

If you liked the article, share on:

Comments

Recommended

During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries