Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

GM Reinstatement Offers Deemed 'More than Fair'

March 13, 2010
2 min to read


General Motors Co. is imposing no onerous conditions on dealers it is offering to reinstate, five lawyers said today.


Most of the 661 eligible dealerships will agree to the conditions outlined in the letter of intent that GM started sending today, the lawyers and some dealers told Automotive News. They spoke anonymously because dealers have a confidentiality agreement with GM.

Ad Loading...


The confidential three-page letter lists 13 conditions and requirements, including working capital, facility, location, floorplan financing and licenses, none of which treat the dealerships differently than non-rejected stores, a copy of the letter obtained by Automotive News shows.


The letters reassure dealers who had worried that GM would require costly changes to their stores.


GM spokesman Dave Roman confirmed that the letters GM is sending to the 661 dealerships are “essentially the same” as typical GM letters of intent to offer franchises.


The March 11 letter is a form letter with just two items that differ for each dealership: the amount of working capital that each must have and the size of the wind-down payment that it received from GM, which all dealers must return.


The only potentially troublesome provision of the letter for dealers is its requirement that the dealerships operate under the federal bankruptcy code rather than state law through October, three dealer lawyers said.

Ad Loading...


This could pose a problem, for example, if a dealership did not comply with GM’s brand-image requirements and the company sought to terminate the dealership, a lawyer said.


GM would have an easier time eliminating a dealership under federal bankruptcy code than under state law, he said.


The two lawyers said it is not yet clear how many of their clients, if any, might refrain from signing the letter because of this issue.

More Industry

Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →
Bar graphic showing car segment activity for the previous week
Industryby StaffMarch 31, 2026

Black Book: Weekly Market Update

Last week's wholesale auction activity was stable, though buyers exercised selectivity as they focused on certain segments.

Read More →
Ad Loading...
gray background with white text that says Dealer Debrief 03/25/2026 with Lauren Lawrence. picture of a white woman (Lauren) with red hair
Industryby Lauren LawrenceMarch 25, 2026

Dealer Debrief: Safety, Supply & Partnership

In this week's Dealer Debrief, host Lauren Lawrence covers a new safety assessment, current inventory issues, and a new payables process for dealerships.

Read More →
Line chart depicting retail used-vehicle auction volume
Industryby StaffMarch 24, 2026

Black Book: Weekly Market Update

Both conversions and values were up last week, though business was spotty depending on the segment in question.

Read More →
red battery-electric vehicle using a Tesla Supercharging station
Industryby Lauren LawrenceMarch 24, 2026

Stellantis Expands Charging Network

Five of its brands now have greater access to battery-electric vehicle charging through Tesla’s Supercharger network across North America.

Read More →
Ad Loading...
blue subaru crosstrek in city with Save with SUVS text and Providers and Administrators logo
Industryby Lauren LawrenceMarch 17, 2026

Safety Drives Insurance Rates

Sixteen out of the 20 cheapest vehicles to insure in 2026 are SUVs, according to CarInsurance.com, largely because of their safety features and lower repair costs.

Read More →
Close-up photo of the front of a new-looking white car
Industryby Hannah MitchellMarch 17, 2026

New-Vehicle Shoppers Get Some Relief

Overall conditions in February tipped slightly in consumers’ favor as prices stayed high, granting a reprieve of sorts just before the war on Iran commenced and started to reverse the welcome trend.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Ad Loading...
text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →