Guess what year the following statement was written: “Many dealers at the end of a hard year’s work find that the profit of their new car business is not locked up in the bank but in a stock of used cars which are not earning interest but are depreciating daily in value.”

The relationship that the new General Motors intends to have with its going-forward dealers has now come into full focus. First, GM started with the onerous, take-it or leave-it participation agreements and then followed up with its potentially harmful Essential Brand Elements incentive program.

It’s true, automotive manufacturers are starting to open brand new dealerships at an increased pace. Surprisingly, I have been working on more franchised new dealership add point proposals in the past few months than at any other time over the past 10 years.