by Christopher Freeburn | September 27, 2013 11:55 am
Car buyers in one state won’t be able to take advantage of dealer incentive programs from one major automobile manufacturer any longer.
The nation’s largest carmaker has advised dealers in New Hampshire that it is ending new dealer sales programs in the state. General Motors (GM) is making the move to counter a new state law that forces automakers to disclose sales targets for all dealers in the state and provide specific information about how individual dealer sales objectives are determined, Automotive News notes.
According to GM, the law would reduce its ability to quickly adjust incentives programs to match competitors, since dealers have to be notified, in writing, of any changes to incentives offers. The company says the notifications would also potentially give rivals advanced notice of its intentions.
A number of other states have laws mandating incentive program disclosures, but only if dealers specifically request them. New Hampshire is the first state to compel automakers to give all dealers written notification.
GM has 24 dealers in the state. The head of the New Hampshire Automobile Dealers Association, which backed the law, said GM should provide more data to its dealers and that the notifications wouldn’t require burdensome delays.
Shares of GM fell about 1% in Friday morning trading.
Source URL: http://investorplace.com/2013/09/gm-to-end-dealer-incentives-in-new-hampshire/
Short URL: http://invstplc.com/1nyE1ft
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.