Hunting Goodwill

AutoExec Summary
A leading automotive legal specialist, Evan Stents, has warned dealers about recent court cases that could render the value of their businesses and client base worthless. Recent court cases have discounted the concept of accounting goodwill, which is the reward of a lifetime, and only recognize legal goodwill, which the courts are saying is worthless once a dealer agreement ends. This has important implications for the compensation dealers might receive when an OEM changes their dealership model or leaves the market. Stents also highlighted a class action brought against GM Holden by some Holden dealers, which could have significant implications for dealer compensation.

Brands mentioned: Mercedes, GM Holden