Nino, who is responsibile for the invenotry, GM or the Dealers?? I don't understand the process, when dealers order cars the manufacturer is that when they pay for them from GM, or does GM still technically own them until they sell. I know when you sell the cars you get a holdback payment from GM, and I thought the longer the car sits on the lot the less you make on it. Do you have to pay taxes, or any type of depreication for the unsold vehicles or does GM eat that cost. Not trying to be nosey, but I have always wondered how this process works.If these don't sell, and we file Chapter 11 there will be no expendable cash to pay out to dealers in incentives and the rebates will go down.
GM pays the dealers rebate money. Its not just a magical discount.
Less $ less rebates.