Over the past year, the number of General Motors minority
dealerships has surprisingly been holding steady in comparison to GM’s dealers numbers overall, according to a spokesperson for the automaker. But with the state of the automaker in limbo, there are some serious concerns about what the future holds for GM’s minority dealers.

Michigan Chronicle automotive correspondent Marcus Amick recently spoke with Marjorie Staten, executive director of the General Motors Minority Dealers Association (GMMDA), to get an idea of what some of those concerns are and what’s being done to ensure the future of GM’s minority dealer network.

MICHIGAN CHRONICLE: What is the biggest issue facing GM’s minority dealers right now?

MAJORIE STATEN: Access to capital to operate their dealerships, lack of available credit options to finance customers
and lack of interest of potential customers to buy vehicles. There is limited liquidity.

MC: What seems to be the general overall feeling among the dealers
about the measures President Obama is taking with the American
auto industry?

MS: The overall feeling among the dealers is for the auto manufacturers
to be treated fairly and equitably.

MC: What is the biggest concern for GM’s minority dealers regarding
some of the issues outlined by President Obama?

MS: I believe their biggest concern is whether or not GM will be
forced to file bankruptcy and if so, what will be the impact on their dealerships and how this will affect the consumer’s perception of supporting a bankruptcy automotive company.

MC: What type of concessions are GM minority dealers being
asked to make as it relates the automaker meeting the demands
being outlined by the administration?

MS: I am not aware of any specific concessions.

MC: Is your organization being allowed to participate in the discussions
with President Obama’s Auto Task Force in regards to GM’s minority dealers?

MS: Yes, over the past four months we have participated in several
meetings and discussions with numerous U.S. congressional representatives, senior representatives of the U.S. Treasury Department,
Federal Reserve Bank and the Small Business Administration as well as
senior representatives within the Obama administration who have
spoken directly to the President and Ron Bloom, co-chair of the President’s Auto Task Force outlining the immediate financial support that
we are requesting for minority auto dealers.

MC: What does the situation look like for the minority dealers
if GM has to file for bankruptcy?

MS: Not sure how a possible bankruptcy may affect the dealers, however,
we remain hopeful that both loyal GM customers and potential new
customers will continue to support General Motors by continuing to
purchase GM products. The current GM product line is outstanding and
can’t be beat by any auto manufacturer, both domestic and foreign.

MC: What would be the worst case scenario for GM’s minority
dealers?

MS: The worst scenario would be that GM will be forced to close more
dealerships than anticipated which could greatly impact the number of
minority dealers who will be able to remain in business.

MC: What would be the best case scenario for GM’s minority
dealers?

MS: The best scenario would be for GM to present an “acceptable” restructuring plan that is approved by the President’s Auto Task Force and
the Obama Administration as quickly as possible which leads to improving
consumer confidence, increased auto sales and overall stability in the
industry and economy as a whole.