To many peoples’ surprise, SAAB was amongst the brands that made the cut when federal bankruptcy judge Robert Gerber cleaved GM in two. Saab was owned by GM Canada. It’s now part of New GM—which is busy negotiating with The Koenigsegg Group to offload the Swedish automaker. Very little has come out of the recent negotiations re: the sale and/or the European Investment Bank (EIB) loan that Saab, GM and Koeningsegg view as a prerequisite for the deal to go down. Meanwhile, last week, SAAB CEO Jan Åke Jonsson declared “we need a cash infusion so we can boost production.” Förlåt?

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Click here for a pdf of GM’s latest incentive programs. To give you an idea of how complicated this company’s pricing has become, note that the company providing the information, AIS rebates, is an independent third party. They make a good part of their living interpreting the GM FUD for the bankrupt automaker’s dealers. Huh.

Automotive News [sub] reports that GM’s dealers will have recourse in state courts for claims involving product-liability, warranties, compliance with lemon laws, privacy/no call laws, and environmental and tax laws. Termination disputes are to be handled by GM’s bankruptcy court, however. “We didn’t get everything we wanted,” admits Colorado Attorney General John Suthers. “But the new GM will be fully subject to state regulation.” Suthers and Nebraska AG Jon Bruning negotiated the agreement with GM on behalf of 43 other states. Already-culled dealers are the virgins in the volcano, unless their The Automobile Dealer Economic Rights Restoration Act of 2009 passes. But The General is still alive, and the dealers that survived the cull still have to do business with it. Or at least sue it. Some must die that others may live and litigate.

You may not be familiar with H.R. 2743. The Automobile Dealer Economic Rights Restoration Act of 2009 tells New Chrysler and New GM that they “may not deprive an automobile dealer of its economic rights and shall honor those rights as they existed, for Chrysler LLC dealers, prior to the commencement of the bankruptcy case by Chrysler LLC on April 30, 2009, and for General Motors Corp. dealers, prior to the commencement of the bankruptcy case by General Motors Corp. on June 1, 2009, including the dealer’s rights to recourse under State law.” In other words, it would reverse New ChryCo’s and New GM’s dealer cutbacks—or at least force Uncle Sam to spend taxpayer billions to dump them. The bill is doomed. But that’s not stopping GM from asking its post-cull dealers to show their fealty and help twist the knife into their former colleagues. Text of the “loyalty oath” after the jump. [thanks to you-know-who-you-are]

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So much for the bailout leading to a compact/alt-energy über alles approach. The newly reconstituted Chrysler has lost its A/B segment (compact, city car) vehicle line chief and will be cutting nearly half of its Global Electric Motors (GEM) dealers. Of course, Chrysler’s A/B segment vehicle lines are empty at the moment, and aren’t likely to be filled with anything beyond cynical Fiat rebadges. Is that why Andreas Schell, who came to Chrysler with the Daimler merger, is leaving? Chrysler spokesfolks tell Automotive News [sub] only that they knew Schell “has left the company but didn’t know where he is heading.” Meanwhile, Chrysler is culling 64 of its 150 GEM dealers because “many of the rejected GEM dealers failed to sell more than a handful of GEM cars [er, Neighborhood Electric Vehicles, actually] in the past 12 to 24 months or longer… The debtors have determined that the GEM dealership agreements are neither necessary nor valuable to their estates and should be rejected.” Of course, perhaps the problem isn’t so much the dealers as the vehicles… but good luck getting a judge to rule that way. In any case, the one GEM dealer that the Freep spoke to was glad to see the GEMs go, saying they never sold regularly or particularly profitably.

For years GM’s inventory levels have been a major cause for concern. Falling market share lead to overproduction which lead to incentive addiction and falling profitability as GM tried to help its dealers clear their lots. But now that GM has cut production to the bone during its bankruptcy, dealers are beginning to complain to Automotive News [sub] that “right-sizing” is leaving them short on crucial truck and CUV models. GM’s summer shutdown ends on the 13th of July, but a rolling restart means some production won’t come back online until August. In the meantime . . .

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Ford is jumping on the recently-signed Car Allowance Rebate System (a.k.a. Cash for Clunkers) to lure customers into the showroom. Ford’s home page includes a highlighted link to the “Recycle Your Ride” program. A prospective Ford buyer can enter details about their current vehicle into a drop-down menu system and quickly see if it qualifies for scrappage. They can also discover which Ford models earn the $4500 or $3500 federal voucher against the crusher candidate. So far the Dodge, Chevrolet, Honda and Nissan websites have nothing. Toyota and Volkswagen both offer primitive informational pages, but nothing to match the sophistication of Ford’s effort. You would think the government-owned auto companies would be all over the government-run incentive program. But no. And get this: KBB’s man tells the New York Times that the consumers might be better off without the vouchers . . .

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Or is that regulatory purgatory? Automotive News [sub] screams “Dealers decide who gets discounts,” confirming that America’s very own scrappage scheme is not going to be the quick eco-nomic (geddit?) stimulus the fans predicted. Of course, AN was getting a bit histrionic; the headline was just their wacky way of explaining that NADA is advising dealers to wait for regulations to publicly endorse the deal. The big news is the regulations. Now that the congressional pomp is over, the folks behind Government Motors are finding that the incentive game isn’t always easy. In fact, “It’s complex and not like anything we’ve ever run before,” admits the NHTSA’s Rae Tyson. “We’re starting from scratch.” What could possibly go wrong?

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We’ve said it before: both Chrysler and GM have been using GMAC as their “bag man”: withdrawing credit from dealers to kill them without messy political blowback. This despite the Small Business Administration’s new federal loan guarantee program for beleaguered car dealers. The Wall Street Journal reports that where the feds giveth, GMAC is still taking away. “GMAC LLC is suspending wholesale financing for certain Chrysler Group LLC dealers it considers to be too risky to lend to, GMAC and Chrysler confirmed Wednesday. The move could ultimately push more Chrysler dealers out of business and hurt the company’s ability to sell vehicles.” That last bit’s pretty funny—providing you’re not a Chrysler dealer. Anyway, the WSJ runs the numbers or at least tries . . .

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Robert,

Thank you for taking the time to speak with me today. Our website www.cashguzzlers.net has been following the story for months and of course we were concerned when our site was referenced along side of a website that looks like a phishing scam. Our website was created to provide information and clarity to consumers and also to help create a greater awareness of the program to sell more cars.

Your suggestions were very helpful because the goal of the website is to provide good information about the CARS program and to allow consumers to have the choice to have a local dealer contact them about buying a new car. We also have been answering hundreds of emails and calls for free to help consumers and also to help our automotive clients have a successful launch of this program. We are taking the following steps to ensure that the public is aware that our site is a consumer website and not a government website:

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The Department of Transportation (DOT) has fired-up its Cash4Clunkers website. I would have thought the bill’s nickname would have been ideal for the job, but then I’m not a public servant. And so the feds present its brand new website with a new name: CARS (Car Allowance Rebate System). Definitely a case of not leaving well enough alone. To wit: a button on cars.gov asking “How will CARS work”. Apropos of nothing, the site also has a strange FAQ: “I don’t drive an American car but I would like to trade in my old car for a newer, more fuel efficient one. Is this program only for American cars?” Now why would anyone think that? More CARS after the jump.

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Cory02 writes:

Something interesting happened with my nearest former Chrysler/Dodge/Jeep dealer (Dave Croft Motors in Collinsville, Illinois): they appear to be selling new Chrysler products again. In the days approaching the “drop-dead” date for the culled dealers, I thought it was odd that they not only kept the large “Chrysler/Dodge/Jeep” signs on their building but also kept them lit at night (I would have personally taken them down out of spite). The owner went through the motions of crying to the media, proclaiming that he would stay in business as a used dealer, and then moved all the new cars to the very back of the lot and put them in neat rows to await pickup and delivery to another dealer after June ninth.

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Earlier today, we reported that Nebraska Attorney General Jon Bruning was mounting a legal challenge to GM’s dealer cull via anti-trust regulations. I pointed out that Bruning’s zeal probably had a little something to do with GM and ChryCo car dealers in his patch. A bit of Googling adds the words “and how” to that supposition. Campaignmoney.com lists contributions to the “Friends of Jon Bruning” Political Action Committee. It has to be said: Jon’s not lacking for friends in the car biz. Number two on the list: Craig “Ugliest Web Site in History” Cox of Cox Chevrolet. Baxter Chrysler Jeep Dodge clocks-in at number six. A diligent member of our B&B points out that many of the “homemakers” on the list are attributed to “Anderson.” Talton “Tal” Anderson and his family own a slew of dealerships in NE and western IA, and AZ (and maybe elsewhere). Over on opensecrets.org, we learn that Jon Bruning is number 11 on the list of top recipients of car dealer contributions. Hey! Hillary’s number one! And there’s Joe Biden! Say it ain’t so, Joe! Anyway, nothing illegal here. But it helps to have a scorecard to know why the playa is playin’.

GM’s dealer cull is taking flak from its flanks, as Nebraska Attorney General Jon Bruning has launched a lawsuit to stay the bankrupt automaker’s quivering, zombie hand [download press release here]. In his letter to other state AGs asking for their support, Bruning is not happy with GM’s request that its dealers waive their rights under state law. Specifically, the bit that says “No law of any state or other jurisdiction [go Puerto Rico!], including any bulk sales law or similar law, shall apply in any way to the transactions contemplated by the 363 Transaction, the MPA, the Motion, or this Order.”

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