DETROIT -- General Motors plans to cut off Reynolds and Reynolds Co. from servicing 400 dealers who have installed a Reynolds version of the GM Integrated Dealer Management System, or IDMS.
The decision is part of a settlement of the breach-of-contract lawsuit that Reynolds filed in October against GM over the dealer system. The two sides reached the settlement Thursday, April 3.
After a 10-month transition, Reynolds will not participate in any aspect of GMs program, including service and maintenance.
About 400 non-Saturn GM dealerships using a GM IDMS supplied by Reynolds would be cut off from future service of that system by Reynolds, the largest vendor of dealership management systems.
GM says dealers will receive a comprehensive letterexplaining in detail their choices regarding selection of a replacement system.
The settlement gives the 400 dealers three options:
1. Convert to another GM Integrated Dealer Management System -- supported by ADP Dealer Services, Quorum Information Technologies Inc. or AutoSoft International Inc.
2. Remain a Reynolds customer by contracting directly for Reynolds ERA or POWER systems.
3. Look to any other vendor for a standard dealership management system.
The GM IDMS is a package of computer software, hardware and services assembled to GMs specifications, then installed and maintained by Reynolds or one of three other GM-approved vendors. The package is sold to dealers at a price negotiated by GM and the vendors.
In February, Reynolds said it would not supply the GM IDMS to Saturn dealers, as had been expected. But Reynolds had been expected to continue to service those dealers who had purchased the system from the company.
Said Reynolds spokesman Thomas Schwartz: If you are on a Reynolds-supplied IDMS, you can remain with Reynolds. Its your choice.
GM wants dealers to make their choice by July 31. They then have until Jan. 31, 2009, to make the transition.