GM Begins Buying Out Hummer Dealerships

GM’s latest wave of buyouts may not affect employees, but Hummer dealers instead.

Although it’s doing so in a quiet manner, the automaker is currently involved in buying out a number of Hummer franchises across North America.; The move is a sign that GM’s working to streamline the brand, if not sell or discontinue it altogether.

Several dealers are in talks with GM over selling their retail store, but many insist they’ll not surrender their investments without a fight.; A similar situation occurred in 2005, when GM phased out the Oldsmobile brand without appeasing existing dealers.

In the meantime, GM is also trying to win the favor of Hummer dealers by drastically changing their sales bonus program.; Dealers are receiving bonuses for the second- and third-quarter 2008 sales before achieving them, yielding an average bonus of at least six figures.

Source: Automotive News