GM tells dealers upgrade or die!

Automotive News [sub] reports that GM will force its remaining dealers to sign “participation agreements” requiring them to complete any upgrades GM requires. If they don’t sign on the dotted line by mid-June they face having their franchise agreements “yanked” says GM’s Mark LaNeve. “They get put into the old company and get a fairly quick termination, like the Chrysler dealers did,” LaNeve said. “Their sales and service agreement will be rejected and put into the old company.” GM will send out letters to its dealers tonight, according to AN, which will detail the requirements to remain a part of GM’s happy family.

“We expect them to perform well on customer satisfaction scores and sales, have their facilities up to speed and not have any non-GM brands in their showrooms,” glowers LaNeve. But, “we’re not right away demanding new facilities,” LaNeve said. “We’re not using this as a threat in this kind of market to get dealers to… spend money they can’t afford to spend.” Funny, because that sounds exactly like what GM is up to. Watch this space.