GM sends franchise agreement to dealers to sign

GM sends franchise agreement to dealers to sign

General Motors has posted the 2015 Dealer Sales and Service Agreement on GMs GlobalConnect for dealers to review and sign.

A memo from NADA to GM dealers says, –NADA has reviewed the proposed changes, and it does not appear that they represent significant changes over the current Agreement.” But NADA emphasizes that the memo does not constitute legal advice, and dealers should consult with GM or their own advisors if they have questions.

GM sent a July 23 letter to dealers outlining the changes in the new agreement, which appear to be minor and of a technical nature. For instance, changing –dealer owner” to –dealer investor” to reflect the majority of dealer arrangements.

At NADAês request, GM has provided a version of the Agreement that shows the changes to the Standard Provisions. To access the –Comparison of 2010 and 2015 Dealer Agreement,” GM dealers should log on to GlobalConnect, go to Departments, then to the Business Office Reference Library.

As noted in GMs July 23 letter, the new Agreement removes some of the successor limitations. When a successor is put in place, the existing Dealer Agreement will now be amended to reflect the change in dealer operator and will continue for the remainder of its term. GM has also removed language allowing it to condition the offer of a new Dealer Agreement at succession to a relocation of the dealership.

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