“There are two ways to do this. It could be belts and shoulder straps, or it could be a sideline to try to increase sales of GM products. Bulletin 17-12 advises dealers to inform customers who purchase vehicles with non-GM service contracts that GM will not support these contracts. There is nothing new in this application. What is new is the mandate of a separate form for this disclosure, associated with incendiary and misleading disclosure regarding the use of non-genetically modified parts. Bulletin 17-13 is written in bulk to take advantage of GM`s millions of recalls, threatening to hand over responsibility for recall repairs to merchants if merchants do not use GM parts, if not the franchise agreement or federal law. “However, for disclosure obligations to have any meaning, it must have consequences for a trader who ignores or rejects this very important information,” he added. Automotive News received copies of both letters from GM. The first letter was first reported in R-I and Showroom. What about the mysterious “flow”? A customer of a closing dealer will not necessarily go to a new GM dealership if his former dealer was the basis of his relationship with GM.
Chrysler/Fiat faces the same problem. In five years and in another business cycle, we could see some growth in GM`s sales. In the meantime, what will happen to the viability of GM and the network of local dealers. GM is not alone in having non-OEM or non-OEM service requirements in its franchise agreement. The requirements of other OEMs are not as stringent as those published in GM`s newsletters. However, distributors should review their franchise agreements to understand their commitments. In its August 24 letter, GM informed distributors that they must comply with the bulletins until December 1, 2017. National and national trade associations will continue to seek to challenge the over-reach of GM. However, as the effective date approaches, distributors must decide how to deal with GM`s non-compliance with distributors` rights. Because there is a disclosure obligation in the franchise agreement, dealers are prompted by gMs` assertion that the form was designed to increase transparency with customers, Bellavia said. “The only thing that is achieved is to make the requirement more difficult, so that the customer is constantly reminded that they are not buying a genetically modified product,” he said.
Mercedes Benz dealers can only use aftermarket products that do not compromise the mechanical operation of the vehicle and which, in the design, correspond to Mercedes Benz parts and accessories. If the distributor uses aftermarket parts and accessories, they must inform the customer and inform the customer that the item is not included in the warranties provided by MBUSA. An anonymous reader sent us the agreements before and after the company`s parent ship sent to GM`s merchants after the bankruptcy. Here is GM`s controversial dealership contract after bankruptcy before the National Automobile Dealers Association intervened (and media condemnation). And here`s GM`s controversial dealer contract after bankruptcy, after facing the merchant revolt. The differences between these two documents are not as profound as their similarities. Casey Raskob (aka Speedlaw) points out in a comment below: “In short, dealers agree to buy GM cars, the buildings where they are sold, and this deal may change depending on GM`s mood.
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