Previously published in Canadian AutoWorld
magazine.
The scenario is an ominous one, and all too frequent. You are an
Ontario car dealer under a dealer agreement with the manufacturer
that goes back for a number of years. Over that time frame,
relations have been good although in the last few years, it has hit
a few bumps.
Renewal time is approaching. For you, it is business as usual.
But sales are slow, and you have an uneasy feeling because you
heard of a few experienced operators sniffing around for an
opportunity to open a competing location uncomfortably close to
your territory.
The manufacturer notifies you, out of the blue, that it does not
plan to renew your dealer agreement. You quickly realize that the
rumors are true: another dealer has pulled enough strings to put
himself into a position to replace you in your territory,
presumably in that empty building down the road from which he used
to carry on business with a competing brand.