GM Ready to Sue Some Dealers

General Motors Corp. is prepared to go to court to stop dealers from selling a GM nameplate and competitive products next to one another on the same showroom floor, according to a top company executive.

GM's opposition to sharing showroom space stems from other automakers — namely Koreans — offering dealership sales personnel cash incentives in addition to their typical retail commission, says Bill Lovejoy, vice president, GM North America Sales, Service and Marketing.

In 2000, about 155 dealerships in the U.S. featured showrooms with GM products alongside competitive vehicles. Since GM began taking action, 130 have complied, a GM spokesman says.

Most of the dealerships are keeping the competitive vehicles on site, but separate entrances are being provided and/or showrooms are being clearly divided, the spokesman explains. The 25 or so remaining dealers apparently have a date with GM in court.

Of GM's own practice of providing its salespeople with extra cash to move metal, Mr. Lovejoy says it is only to help Oldsmobile dealerships retain valued sales personnel as the brand is phased out during the next few years.