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.

American carmaker Cadillac is now taking the wraps off the luxury sedan that it describes as its most technologically advanced production car ever since – the 2013 Cadillac XTS. Bound to arrive in dealerships not only in the United States but also in Canada in spring 2012, the new Cadillac XTS luxury sedan is off to show there exists a new way to convey the premium brand’s trademark combination of the roominess, luxurious elegance and expressive road presence.

Basically, the new Cadillac XTS is larger than the CTS and it offers a lot more. Employing the latest and newest advanced methods, the 2013 XTS will be the first Cadillac vehicle to feature CUE or Cadillac User Experience. CUE is considered as an all-inclusive in-vehicle experience that marries intuitive design pioneering controls and commands to allow users to better control information and media.

Aside from the CUE, the new XTS also features an array of latest useful technologies like the Magnetic Ride Control – featured as a standard component – which is considered as the fastest-reacting suspension in the world. Of course, the new Cadillac XTS is also available with technologies that could further improve vision and safety. Serving as the core of the new XTS is another impressive work of technology -- a 3.6L direct injection engine as complemented an advanced all-wheel drive system.

Don Butler, vice president of Cadillac Marketing, called the Cadillac XTS as a representation of the brand’s new formula for luxury as driven by advanced technology. He added that the new XTS highlights the evolution of the carmaker’s Art & Science philosophy, in which the brand fuses the refinement of Cadillac design with the best technical ideas.

Topics: gm, dealership, lawsuit

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