GM will only require separate showrooms for its products, not exclusive properties

2010 Cadillac CTSGeneral Motors Co. dealers became frantic after receiving a letter from GM warning them that they are required to remove non-GM brands from their premises by Dec. 31. GM has since sent a retraction, clarifying that it will only require separate showrooms for the GM products and not exclusive properties.

GM spokeswoman Ryndee Carney says that dealers who got the erroneous letter will receive an explanation about the error sometime this week. She declined to say exactly how many dealers got the misleading letter. It’s not hard to imagine how the dealers would have responded to the demands stated in the letter. In fact, lawyers and dealer associations had reacted to the alleged message in the letter with much anxiety. They cited the June 1 sales and service agreements GM issued to dealers when the automaker was in bankruptcy. They reminded GM about the “participation” agreements that enumerated the requirements for dealers GM wanted to keep in its retail network.

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