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Old 05-28-2010, 06:18 AM   #8 (permalink)
jkp1187
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Quote:
Originally Posted by cfg83 View Post
texanidiot25 -



I think the Ford signs contracts with dealers where it agrees to deliver "X amount of product Y". If Ford stops making Mercuries, it would be in breach of contract.

When GM was in bankruptcy, it was a lot easier to get rid of Hummer/Pontiac/Saturn because they were protected.

But I don't have the legaleze correct. There are people that can explain it better than me.

CarloSW2
I remember it definitely cost GM billions to shut down Oldsmobile at the beginning of the decade, exactly because of those requirements. There are also some very tortuous laws in some states designed to protect franchise owners at the expense of the 'mother' company.
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