Special rights for auto dealers wrong

By John Donahoe

Vindicator

As manager for General Motors Lordstown Complex, I‘m proud to lead 3,300 hard working men and women devoted to one vision: Building the world’s best vehicles right here in Ohio.

Our facility is one of many that add up to GM being one of the largest employers in the state. Overall, we provide more than 10,000 jobs and support tens of thousands more through 1,500 plus suppliers. And, over 70,000 retirees in Ohio depend on a strong GM for their retirement benefits.

That’s why it was so difficult to see first-hand the sacrifice required by the community and colleagues to weather the nation’s economic downturn and GM’s restructuring. But our actions to create a stronger, profitable and successful GM are now taking hold. In fact our future looks bright as sales of our four brands are up, our vehicles are being recognized independently for improved quality and we’re making steady progress to pay back our nation’s support.

Just this year, we plan to invest more than $450 million and plan to restore over 1,000 jobs at our Lordstown, Toledo, Parma and Defiance, Ohio plants to build a new, world-class small car, the Chervolet Cruze.

Special dealer interests

Unfortunately, there is legislation, pushed by special dealer interests, that is moving through the Ohio Legislature that could bring this growth and progress to a screeching halt. Ohio auto dealers are using their political connections in Columbus to secure special new rights that will drive up our costs and prevent us from making great cars.

Senate Bill 204 (SB204) and House Bill 364 (HB364) contain provisions that defy good business practices and fairness. This legislation will allow dealers to sell GM vehicles, and those from our foreign competitors, from the same showroom which is the equivalent of forcing a Starbucks to offer Tim Hortons coffee.

Both bills would prohibit ACDelco parts from being sold at over 6,000 businesses in Ohio, including your local Tuffy, Valvoline, Goodyear, Carquest, NAPA, Pepboys, or your local body shop, to name a few. They would only be sold at the nearest auto dealership. This is certainly not the time to limit the distribution of parts by GM and our wonderful suppliers.

These bills limit the ability of GM to audit business transactions with dealers which helps us discourage fraud. And this legislation requires GM to pay rent on a dealership’s property for up to two years if the dealer is convicted of fraud or even after the dealer chooses through their own actions to close their franchise’s doors.

Just to be clear, GM values its many dealers and the vital role they play in the community. We recognize how critical good, dedicated and honest dealers are to our mutual success, and most importantly, satisfying our customers. But we cannot stand by as special protections are created for the few dealers who do not place the customer or selling GM products first. Most troubling is that SB204 and HB364 set a devastating precedence that will divert GM resources away from investing in new products, technologies and jobs while also harming new business opportunities for strong performing dealers to meet increased market demand.

An appeal

In order to keep our momentum going and to repay our nation’s support, we respectfully ask the Ohio Legislature to reject SB204 and HB364. Special interests should not be placed above Ohio’s economic recovery, consumers’ and the taxpayers’ ability to recover their investment in a stronger GM.

John Donahoe is plant manager of the General Motors Lordstown Complex.