Automotive News - April 21, 2008 - (Page 34)

34 • APRIL 21, 2008 Corporate Car Trainer® corporatecartrainer.com Consulting and Training Judge refuses to toss GMC franchise-award case Eric Freedman freedma5@msu.edu Back to court Issue: Did GM breach an agreement to supply popular vehicles and award a GMC franchise to a Minnesota dealer? Where it stands: Federal judge rules a jury should decide and lets the case proceed. 30 Years Automotive Experience! Closing Team Development Process Stores 200 Units + The Next Level 15 Segments to Delivery Sales Process Motivation Business Development Customer Retention Lease Satisfaction Internet A suburban Minneapolis dealership can pursue claims that General Motors failed to fulfill its commitment to provide new vehicles and to award a GMC franchise, a federal judge has ruled. The decision lets stand allegations by Shakopee Chevrolet & Pontiac Inc. of breach of contract, bad faith and violation of one provision of Minnesota’s motor vehicle dealer law. The judge dismissed a second dealer-law claim. Shakopee originally sued GM in 2002 with claims stemming from the demise of the Oldsmobile line. Under a 2005 settlement, GM agreed to grant a GMC franchise if the dealership sold 370 new retail Chevrolets and Pontiacs in 2006. The agreement also required GM to supply at least a 60day supply of all models for both makes, according to that suit. The lawsuit asks for monetary damages and unspecified “further relief,” which could include ordering GM to award a GMC franchise. Dealership lawyer Sean Shiff, of Minneapolis, declined to say whether his client also will seek punitive damages. GM spokeswoman Susan Garontakos would not comment on the case. The ruling selling vehicles would be provided as a special allocation. For example, for every Corvette sold, Shakopee would receive credit for having sold two Corvettes, which would double the number that Shakopee could order and receive in the future. U.S. District Judge Michael Davis rejected GM’s request to toss out the case. First, he said a jury should decide the breach-ofcontract claim because the settlement agreement was ambiguous about the meaning of a 60-day supply of new vehicles and about whether Shakopee actually had ordered the vehicles. Second, Davis allowed the bad-faith claim to stand, saying that under the settlement agreement, both sides had “a reasonable expectation that the other would negotiate in good faith” over which specific vehicles would be ordered and shipped. Davis also ruled that a trial is required to decide whether GM committed an unfair business practice by failing to deliver vehicles ordered by a dealer. At the same time, the judge dismissed a separate dealer-law claim, finding no evidence that GM had required Shakopee to order or accept delivery of any vehicles. c Dealership: GM misled As a result of GM’s not keeping its promise, Shakopee claims, the automaker undermined the dealership’s ability to meet the 370-vehicle target and thus obtain the GMC franchise. According to the suit, Shakopee was to get a temporary GMC dealership at its current location and a permanent one at a different site. The dealership claims GM misled it. GM counters that Shakopee had never formally ordered the vehicles and that the settlement agreement didn’t guarantee that Shakopee would receive more of the hot-selling models. 1 800-955-7934 The case The current lawsuit asserts that GM failed to deliver all the vehicles — for example, shipping only three of the promised 40 Pontiac Solstice roadsters and none of the seven promised Chevy Corvette sports cars. The suit says GM further agreed that these hot- Need Salespeople, Tech’s, Managers & Other Employees? The Auto Industry’s #1 Recruiting, Training & Marketing Company Salespeople~BDC~Detailer~Porter~Technician Body Tech~Service Advisor~Service Manager Parts Counter~Parts Manager~Sales Manager Finance Manager~Office Staff~GSM~GM Milestones Jay Shauger and Andy Daub of Brown-Daub Ford-Lincoln-Mercury in Nazareth, Pa., received a 25-year award for Ford from Ford Motor Co. 800-421-4550 www.clickhereforadvice.com Brian C. Hall, President & CEO Other Ben Crocker retired after 56 years as an employee of Red River Motor Co. (Chevrolet) in Bossier City, La. Crocker, who worked in the service department, received a new Impala from dealers James Fritze and George Fritze. ■ 75 with Chrysler William M. Martin, left, and William E. Martin, center, of Martin’s Chrysler-Dodge in Union Grove, Wis., receive a 75-year award for Chrysler from Chad Schwenker, a dealer operations manager at Chrysler LLC’s Midwest Business Center. ■ 35 with Honda Linda Leith and Michael Leith of Leith Honda in Raleigh, N.C., received a 35-year award for Honda from American Honda Motor Co. ■ 50 with GMC ® Cari Yturri of Bennett Motors in Great Falls, Mont., receives a 50-year award for GMC. Pictured, from left, are Joan Bennett; Jona Millard; Cari Yturri, the dealer operator; Paul Wiest, General Motors’ Portland, Ore., zone manager; and Dick Bennett, the former dealer operator. Dealer anniversary awards We invite news items and top-quality photographs for the dealers section. Please include your telephone number or e-mail address. We do not run items for anniversaries of fewer than 25 years. Photos for 25-45 years (one-column photos) should include only two people posed shoulder to shoulder. Photos for 50 or more years (two-column photos) should have no more SM than six people. Please include names (left to right), titles, dealership name and city, franchise(s) held and franchise for which award is given. You may send a photo electronically in jpg format and at high resolution (300 dpi). E-mail items to: autonews@crain.com Or send them to: Dealers Section Automotive News 1155 Gratiot Ave. Detroit, MI 48207-2997 ■ 25 with Ford Phil Lasco, left, of Lasco Ford in Fenton, Mich., receives a 25-year award for Ford from Randy Stewart, Ford Motor Co.’s Detroit regional manager. ACTION INTEGRATED MARKETING PROVIDES FULL-SERVICE & EVENT MARKETING SOLUTIONS FOR DEALERSHIPS NATIONWIDE http://corporatecartrainer.com http://www.clickhereforadvice.com http://www.clickhereforadvice.com http://www.leonwatch.com http://www.actionim.com http://www.actionim.com

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Automotive News - April 21, 2008 Reorganization plan gives more muscle to 4 sales-channel execs Hummer plummets, Saturn soars in sales per franchise Chrysler-Nissan: Loads of partnership potential LIFESTYLE PICKUPS Strike averted Friday at GM transmission plant Hyundai to phase out Tiburon Veteran lobbyist looks back on decades-long mpg battle Autonews.com offers news customization GM offers free digital marketing package to dealers Lithia extends vehicle repair warranty to 3 years/50,000 miles With new products, is there life in Saturn? Ford plans $100M-plus F-150 launch Ford broadens its diesel strategy GM pitches its management system to dealers Supplier to help Mahindra offer diesel hybrid Transplants top 40% of N.A. output in March Geely chief: 'We are still an ant' Honda could import cars from China GM redirects efforts to serve emerging markets Beijing showstoppers New Challenger is appetizer for full line in 2009 Last week, I got a glimpse of the future Service contracts: Federal oversight is needed Delphi mess drags on Can't we stop importing oil? Ryan revolutionized this business An editorial glass ceiling? Driving on hydrogen — pros and cons BMW should build even more here Not what New York ordered Magna exec: More suppliers will fail Canada sales off 0.4% in March Bosch pushes crash avoidance Chrysler plans hybrid Dodge Ram Honda engineer is honored by SAE for safety efforts Panel: Diesels may hit 20% of U.S. market by 2020 Automotive News PACE Awards: Night of black ties, trophies, praise PACE Awards honor innovation Truck sales drop 31% in March Honda's new Pilot is bigger, more upscale In China, GM looks to fresh vehicles in 2009 U.S. economic woes hurt shareholder values Judge refuses to toss GMC franchise-award case Dealers Farley: Ford's marketing team is ready to roll Landry: Chrysler's consolidation will spawn service-only stores Profits up at Johnson Controls Hyundai to fix airbag problem GM to build $200 million Brazil plant Convis is CEO of Dana Holding Denso names Katoh CEO Stephen Feinberg speaks! Hogan eyes CEO spot in startup Chrysler reviving its global dreams? How I saved Delphi: A work in progress Tesla Motors' lawsuit: Designer Fisker ripped us off Concert in the key of C-3PO

Automotive News - April 21, 2008

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