Next Round of Possible Grief, Warranty work
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Next Round of Possible Grief, Warranty work
From USA today, in part:
Experts are advising car dealers to start preparing themselves for the very real possibility that GM files for bankruptcy protection. If the automaker does file, any money owed to dealers for warranty work they've done on cars or for rebates they've already paid to buyers could just disappear, warns Scott Silverman, an attorney. Many dealers are owed hundreds of thousands of dollars from manufacturers at any given time, says Silverman, partner at law firm McCarter & English who specializes in representing dealers. He says he's been prepping Massachusetts-area dealers for a GM Chapter 11 filing with seminars informing them of their rights and telling them to prepare for the worst. A bigger issue for dealers down the road would be if a bankruptcy court let GM cancel their franchise agreements. GM already has said it needs fewer dealers and also said it's not going to buy out dealers as it did at huge cost when it closed Oldsmobile. But dealers first must keep from going under because of cash flow problems.
Full article is here:
http://www.usatoday.com/money/autos/...nkruptcy_N.htm
Experts are advising car dealers to start preparing themselves for the very real possibility that GM files for bankruptcy protection. If the automaker does file, any money owed to dealers for warranty work they've done on cars or for rebates they've already paid to buyers could just disappear, warns Scott Silverman, an attorney. Many dealers are owed hundreds of thousands of dollars from manufacturers at any given time, says Silverman, partner at law firm McCarter & English who specializes in representing dealers. He says he's been prepping Massachusetts-area dealers for a GM Chapter 11 filing with seminars informing them of their rights and telling them to prepare for the worst. A bigger issue for dealers down the road would be if a bankruptcy court let GM cancel their franchise agreements. GM already has said it needs fewer dealers and also said it's not going to buy out dealers as it did at huge cost when it closed Oldsmobile. But dealers first must keep from going under because of cash flow problems.
Full article is here:
http://www.usatoday.com/money/autos/...nkruptcy_N.htm
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