Short Circuit

General Motors targets profiteering auto dealers


After Ford’s example, General Motors is now also threatening dealers who charge customers a premium over the list price for the new electric models. The company says it will take action against such dealers and, if necessary, cut the electric car quotas.

Much like Ford, what the actual consequences will be for dealerships that charge premiums of tens of thousands above the list price to bump reservation holders up or down the list, remains unclear. However, the issue is at least known, and is being addressed.

“Unfortunately, it has come to our attention that in connection with some of these announcements and launches, a small number of Dealers have engaged in practices that do not support a positive sales experience for our customers. This puts our collective interest at risk and generates negative press that reflect poorly on GM’s brands and your dealerships,” wrote GM North America president Steven Carlisle in a letter, adding: “Specifically, it has come to our attention that some dealerships have attempted to demand money above and beyond the reservation amounts set in GM’s program rules and/or have requested customers to pay sums far in excess of MSRP in order to purchase or lease a vehicle.”


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