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I've read that GM will buy back Dealer inventory....
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Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Tue, 26 May 2009 09:22:49 Share Post by Email
In Reply to: Re: the darkest day in American business history, andym, Tue, 26 May 2009 09:05:07
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The Chrysler Dealers are really between a rock and a hard place, but GM seems to be taking a very logical approach. What I've read says the dropped GM Dealers are expected to sell their cars thru the retail market to obtain maximum benifit for themselves, but if they can't sell them in the retail market GM will buy them back at less than retail, but slightly more than wholesale auction prices.

This prevents the price of used cars from plummeting and burning GM on any lease residuals that may still be out there. It will prevent new cars from being sold at deep discount prices thereby hurting the remaining Dealers, and "new" cars being sold as used with under 100 miles on them. It will also prevent the "Screw You" attitude from Dealers which can easily arise from the Chrysler method.

posted by 198.208.15... 
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