Successful Dealerships

Driving Successful Dealerships: Commentary by the Somerset Dealership Team

Dealers Should Obtain Fair Value for Their GM Franchise
May 15, 2009

When GM announced they will “phase-out,” sell or otherwise eliminate the entire Pontiac, Hummer, Saturn and SAAB divisions, the value of these dealerships dropped to record-breaking low levels.
 
We believe dealers should be compensated for the full value of their GM franchise. General Motors has already begun negotiations with certain dealers and have reached agreements with some regarding closure.  Dealers do not have to accept GM’s offer. A well-documented and independently supported claim for additional settlement dollars is necessary to place a fair value on the business. There are many other matters that must be addressed (e.g., inventories and floorplans, ongoing long-term contracts, personal guarantees, rebates and warranty claims, auction access, parts, facilities issues, exclusivity agreements, etc.) 

We are working with some GM dealers to develop the best solutions for their unique circumstances. We have built and are continuously updating a network of communication and data to stay ahead of this dilemma and find creative solutions to this very complex issue.

Members of our professional Litigation & Valuation Team perform numerous dealership valuations each year and have provided litigation support and expert witness testimony for our many dealer-clients.  In addition, we have helped negotiate fair settlements with GM in the past, without the expense of courtrooms or litigation. 

We welcome you to contact us for help.

One Response

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  1. JamesD said

    Thanks for the useful info. It’s so interesting

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