GM, CHRYSLER DEALERS BACK TO BUSINESS

OC Auto Dealers Association preparing for the OC Auto Show At last, the difficult, expensive, and distracting arbitration process established for the closed GM and Chrysler dealers is complete. While we can appreciate the drama and difficulties experienced by the more than 2,800 dealers that were terminated by GM and Chrysler within the companies’ managed bankruptcy processes, it pays to remind that both GM and Chrysler were represented for a very bygone era. Beyond the closure of Pontiac and Saturn dealers, GM was highly over-represented in many markets in light of current and anticipated sales and service volume. A quick glance at the much smaller but much more active and profitable Toyota, Mercedes and Hyundai networks is the easiest way to confirm that notion. The arbitration and review process reinstated 400+ dealers for GM, so any 'bad blood' that existed over supposedly heavy-handed and, in certain instances, irrational closings should be washed away. Conditions for reinstatement included facility upgrades in many cases that were probably overdue and delayed by dealers with shrinking sales, service and revenue volume, so these dealers soon will be able to compete on a much more even stage. But most importantly, the process is done and now GM can get back to work on its renewed mantra to design, produce and sell the most appealing cars and trucks in the world. James Bell, Executive Market Analyst Kelley Blue Book