DETROIT -- General Motors cut off its dealer incentive programs in New Hampshire in response to a new state law backed by dealers that requires automakers to disclose more information about the programs.
GM told its 24 New Hampshire dealers last week that it "will not offer any new dealer sales programs" in the state, including so-called stair-step programs or other contests that reward dealers for hitting factory-set sales targets. GM says the law would restrict its ability to quickly respond to changes in the market, such as fresh incentives from a competitor.
The new law requires automakers to give dealers advance, written details about their incentive programs, including how they calculated each dealer's sales target, and to disclose the targets of all dealers in the state.
"Dealers want to know that the manufacturer isn't simply throwing a dart at a board" to set their targets, said Peter McNamara, president of the New Hampshire Automobile Dealers Association, which lobbied for the law. "If there is a good rationale for why one dealership has a 50-unit objective and another has 25, why not disclose it?"