Car Dealership | featured news

Auto dealerships might not be as smoke-filled and full of tricks as they used to, but a few bad seeds continue to perpetuate the old slick stereotypes.

Honda Motor Co. is warning U.S. dealers that it will run short of several popular models this summer due to parts shortages from the earthquake in Japan.

Sixty-four former Chrysler dealers sued the U.S. government on Thursday, saying the Obama administration violated their rights by closing their stores during the automaker's bankruptcy without compensation.

General Motors said that 90% of GM dealers are reporting profits, up from 40% at the end of 2009.

General Motors Co. will reinstate more than half the dealerships it targeted to drop from its network. GM executives said Friday that about 600 dealerships out of the 1,100 seeking to stay with GM will receive letters giving them the option to remain with the automaker.

The automaker says it has found a remedy that is 'both effective and simple.' The parts are being shipped to dealerships, which will remain open 24 hours a day to make the repairs.

Toyota Motor Corp.

General Motors says it will reconsider its decision to close some dealerships as part of a compromise to scuttle federal legislation that would require it to keep dealerships open.

The Obama administration will end its popular Cash for Clunkers program Monday. For auto dealers, that's the bad news. For the rest of the country, what's more worrisome is how wildly policymakers miscalculated how far they could stretch the extra $2 billion they pumped into the program less than three weeks ago.

GM and eBay will launch a pilot program Tuesday that will allow consumers to place online bids for new vehicles from GM dealers in California.

Facing a glut of unsold 2009 inventory, automakers and car dealers hope the government incentive can help them reduce supply before 2010 models arrive.