The pace of manufacturer aggression toward dealers has not let up in 2015 from the unfortunately torrid pace of 2014. As described in last quarter’s BSM Report, motor vehicle manufacturer are pursuing changes in dealer’s assigned territory to make way for new dealership points and pursuing franchise terminations in record numbers.
BSM has recently been retained by dealers in Florida and Texas to protest changes in the dealership’s assigned geography for purposes of carving out territory for new dealership points. In both states, dealers have a right to protest such a change as an adverse modification of the franchise. BSM intends to demonstrate that the changes to our clients’ territory is unwarranted in that the existing dealerships are more than adequately serving those areas and because historically manufacturers only removed territory following the addition of a new dealership point. Without knowing exactly where the new dealership point is proposed and without the corresponding opportunity to protest the addition of those new dealership points, the change in territory is premature.
BSM has also recently been retained to by dealers in Connecticut, Washington and Florida to defend against attempted terminations of their franchises by General Motors and Fiat Chrysler Automobiles. Like in the other ongoing franchise terminations BSM is defending, we intend to show that GM and Chrysler do not have the required good cause to eliminate our clients’ dealerships. The claimed sales performance deficiencies are unsupported when one examines the unique nature of each dealership’s market which are not factored into the manufacturers’ rigid and unrealistic sales performance formulas.