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GM Statement in Response to SIGTARP Report on Dealer Consolidations

2010-07-18

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The events depicted in the SIGTARP's report have since been overtaken by a new GM and a stronger dealer network to match.  More than a year since its bankruptcy, GM is showing substantial progress.  The company's business performance is stronger, sales of its four brands are up 32 percent, and it is investing billions of dollars in its plants and bringing several thousands back to work.  The new GM is also moving forward to improve dealer relations and has already reinstated  several hundred dealers and completed the arbitration hearings for the remaining dealers who filed cases.  With the right size dealer network, GM expects to continue to realize greater operating efficiencies and increased dealer throughput and profitability and overall cost savings.   GM believes a strong, profitable dealer network selling the world's best cars and trucks gives us a market advantage.

Throughout its review, GM cooperated fully with the SIGTARP to best document the company's efforts, as well as the criteria and numerous business factors used in GM's dealer wind-down and appeals process.  The GM which existed at that time did its best to develop and implement an objective dealer consolidation process under extraordinary circumstances.  As former GM officials noted in various public comments, business conditions required GM to undertake difficult and urgent actions that would require sacrifice among all stakeholders.  Since then, GM, its employees and dealers have a renewed sense of confidence in a bright future.  

We appreciate the SIGTARP's important work to examine the past.   But, for all of us at GM our full focus and energy is directed straight ahead, return the company to profitability, and repay our nation's support.