GMAC and GM Screwing over their Dealers by repossessing Inventory? [View All]

[RamboLiberal]

Sure sounds like it in this story about one Eastern PA dealer.

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In May, when GMAC first said it planned to drop his loan, Eckenhoff negotiated the first of several extensions and searched for another lender to finance his inventory - a task made even harder after the financial markets crashed and banks became far pickier about loan policies.

The third-generation car dealer cut inventory, slashed expenses, and tried to raise cash. Two months ago, he laid off 48 workers to bring expenses in line with low sales.

Eckenhoff was not alone; other area GM dealers have been squeezed by tightened lending as GMAC has sought to trim its auto portfolio and make up for losses it suffered in the subprime market.

Some franchise owners are trying to sell their dealerships while others are rolling the dice and trying to hang on.

GM has told Congress it plans to eliminate a quarter of its dealerships by 2012.

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This is why some locals suspect GMAC is working with GM to clamp down on sites that GM would like to see eliminated from the grid - even though GM has not released a list of targeted dealerships.

http://www.philly.com/philly/hp/news_update/20081228_Cars_leaving_lots_without_drivers.html