Quote:
Originally Posted by Tstag
But selling the division would have raised vital cash for GM and removed a liability. So now they can't find a buyer for this division and possibly also Hummer. What's up for sale next?
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GM arguably could NOT sell GMC as a division since it so integrated into their own operations. If GMC were to go, it would have to be phased out (like Oldsmobile was).
As for liability, the idea of killing the brand may mean a legal liability. However 2 things may stop this:
1). As others have pointed out, GMC dealerships are not stand alone franchises - the incorporate Pontiac and Buick in most cases. That means the owners will still have products to sell and may ultimately circumvent any legal liability since they didn't violate the franchise agreements (depending on the State).
2). If they were to follow a plan similar to the idea I had above, they would limit their exposure since GMC would simply be recaste as a medium duty truck division instead of a mass-market, retail truck/SUV division. They can't sue GM over that anymore than Chrysler/Jeep dealerships could sue Chrysler Corporation for reducing overlapping models so the number of Jeep and Chrysler branded products drops over the next few years.
Either way, there maybe less of a risk here than what some would perceive.
As for Hummer - who knows what will happen. But if they are having the issues they are finding a buyer, I'd almost suspect that they are going to kill off Hummer in the end too.