In the past, an automobile dealer filing for bankruptcy was likely the result of poor management, fraud, or declining sales because of a less-than-desirable facility or a depressed market area.
Strategies for Responding to the Financially Distressed Auto Dealership
Because the financial distress is network-wide, how manufacturers respond to the financially distressed dealership is more important than ever. For some dealerships, the appropriate strategy may be creative cooperation forbearance agreements, operating stipulations, and workouts ' not adversarial enforcement.
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