The Industry's Leading Source For F&I, Sales And Technology

Top News

Attorneys to Tackle GM Product Policy at PALS 2017

August 29, 2017

DALLAS — Organizers of the sixth annual P&A Leadership Summit have announced the formation of a special session featuring attorneys Matthew Bartle and David Marcus. The pair will address recent General Motors directives requiring dealers to disclose to consumers the sale of non-GM parts and service contracts.

“There can be little doubt GM is trying to bully dealers into promoting a factory-branded VSC to the exclusion of aftermarket VSCs,” Bartle said. “The big question is whether and to what extent GM can be stopped.”

Bartle and Marcus are partners in the Kansas City, Mo.-based law firm of Bartle & Marcus LLC. Their session, “The GM Mandate: Legal and Practical Responses,” will begin at 4:20 p.m. on Wednesday, Sept. 13. They are expected to discuss the contents and legal implications of two bulletins and a letter attributed to Alan Batey, GM’s executive vice president and president for North America. The factory appeared to threaten dealers who fail to disclose the sale of non-GM parts and service contracts with a $500-per-vehicle fine, loss of access to incentive programs, and even termination of the dealer’s franchise agreement.

“Thanks to Matthew and David’s availability and fortuitous timing, we are able to offer an informed response to this surprising development,” said David Gesualdo, show chair and publisher of P&A magazine. “We anticipate a full room and a highly engaged audience.”

Registration for Industry Summit 2017 is open at the event’s website. To discuss sponsorship and exhibition opportunities, contact David Gesualdo at (727) 947-4027 or via email.


  1. 1. Ken Argent [ August 29, 2017 @ 03:06PM ]

    Another attempt by General Motors to restrict the sale of independent VSCs......similar to their move in the mid 70's when MIC
    colluded with GMAC and stopped the sale of American Warranty's service contracts. It took several months and a threat of a
    restraint of trade lawsuit before they resumed financing our contracts. Then, in the early 80's, there were constant threats of
    curtailing vehicle allotments and tying it to the sale of GM service contracts......called "incentives", or as some
    would call it, coercion. They have a goal of forcing dealers into selling their brand, but they should be asking themselves, why aren't the dealers selling their programs? Obviously, they haven't figured it out in the 45 or 46 years they've tried to compete, so back to their strong arm tactics.

  2. 2. C Dabney [ August 30, 2017 @ 09:25AM ]

    Good for GM! Car Dealers are Franchisees and given the right to sell the manufactuers product. They are not given the right to spoil the Manufacturers name by offering non branded (and sometimes inferior) products, parts, and insurance products.
    When you buy from a manufacturer, you expect the transaction to be from the manufacturer and not some third part.
    GM is correct in making the Dealers disclose to the consumer that are not responsible for thitd parties.

  3. 3. David S Ruggles [ August 30, 2017 @ 05:42PM ]

    This is much ado about nothing. And its nothing new. What could possible be wrong with disclosing to a consumer that the Service Contract being offered isn't from GM. I received pressure from GM, Ford, MB, and some others during my career. We routinely offer BOTH, OEM and independent Service Contracts. Both were well explained and priced. Then, "Which works best for you?" The customer chose. If most took the independent, so what? They OEM can't take choice away from consumers. Same with parts. Offer both, explain both, price both, alternative of choice close. Document your process.

    Non OEM parts for warranty? If you even consider that you're too stupid to be a dealer.

  4. 4. Sam Huff [ August 31, 2017 @ 06:45PM ]

    If a customer buys a GM vehicle and buys a VSC then they should know what their getting. If third party providers have a great product then they shouldn't be afraid of this at all. The fact is some customers don't know they are getting non factory products and may object unless it is explained properly. Either way customers should have a choice and be made aware of all the options.


Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  



Jumpstart: Longer Campaigns Get More Clicks, Cost Less

A new report from Jumpstart Automotive Media shows that longer term digital marketing campaigns earn higher click-through rates, diminishing the dealer’s cost per lead.