Last month, Reynolds sued GM. It contends the automaker breached a contract by ordering it to rewrite its computer code so that dealerships can sell insurance products by Motors Insurance Corp., a GMAC Financial Services affiliate, without leaving the system.
GM countersued. It asked the court for the option to rescind its agreement with Reynolds. Reynolds has until Dec. 10 to respond in United States District Court in Detroit.
Quorum, of Calgary, Alberta, is preparing to take advantage of the spat by building its business in the United States. It expanded its relationship with PEQ Consulting Inc., a business technology company in Miamisburg, Ohio, to help install the Integrated Dealer Management System in U.S. dealerships, says Quorum President Maury Marks. Quorum struck its alliance with PEQ on Sept. 18, before Reynolds filed its suit against GM on Oct. 4.
Quorum has 225 dealership customers, 86 of which use the Integrated Dealer Management System. Of the 86, only 21 are in the United States.
AutoSoft, of West Middlesex, Pa., has not yet sold an Integrated Dealer Management System. But it has been working to integrate its system with GM systems and learning to work in a GM culture, says Charlie Prophet, AutoSoft's COO.
ADP, of Hoffman Estates, Ill., repeatedly declined to talk about the Integrated Dealer Management System.
The Integrated Dealer Management System is a package of software, hardware and services assembled to GM's specifications. GM sells the system directly to the dealer at a price that was negotiated in advance by GM and each vendor.