EXHIBIT 10.7.1
PONTIAC DIVISION
DEALER SALES AND SERVICE AGREEMENT
In reliance upon the agreement by the parties to fulfill their respective
commitments, this Agreement, effective March 10, 1993, is entered into by
GENERAL MOTORS CORPORATION, PONTIAC DIVISION ("PONTIAC"), a Delaware
corporation, and LITHIA MOTORS, INC., dba LITHIA PONTIAC, an OREGON corporation,
incorporated on October 1, 1977; doing business at 000 Xxxxx Xxxxxxx Xxxxxx,
Xxxxxxx, Xxxxxx 00000 ("Dealer").
PREAMBLE
The future of PONTIAC and PONTIAC dealers depends on setting and meeting high
standards of excellence. We will succeed by achieving superior customer
satisfaction through selling and servicing vehicles with innovative styling and
engineering as well as outstanding performance and roadability.
PONTIAC'S Dealer Sales and Service Agreement is intended to clarify and
strengthen the business relationship between PONTIAC and PONTIAC dealers.
PONTIAC recognizes the need for open and candid communication with dealers so
that mutual goals are achieved. Sharing responsibility and accountability will
improve cooperation.
PONTIAC will offer and promote innovative and exciting Products and provide
competitive programs and services that assist dealers. Dealers will ethically
promote and advertise PONTIAC vehicles and related products and provide quality
sales and service through a professional staff that includes knowledgeable and
well-trained service technicians and sales personnel.
FIRST
TERM OF AGREEMENT
This Agreement shall expire on January 28, 1997, or ninety days after the death
or incapacity of a Dealer Operator or Dealer Owner, whichever occurs first,
unless earlier terminated. Dealer is assured the opportunity to enter into a
new Dealer Agreement with PONTIAC at the expiration date if PONTIAC determines
Dealer has fulfilled its obligations under this Agreement.
SECOND
INCORPORATION OF STANDARD PROVISIONS
The "Standard Provisions" (Form GMMS 1013) are incorporated as a part of this
Agreement.
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EIGHTH
TRAINING
PONTIAC and Dealer agree that professional and knowledgeable sales and service
personnel are essential to a satisfactory customer sales and service experience.
PONTIAC commits to provide training to its personnel. PONTIAC also agrees to
make available new Product and service training to all dealers. Dealer agrees
that it will require its personnel to attend training identified by PONTIAC as
necessary. If PONTIAC identifies Dealer deficiencies, Dealer agrees that its
sales and service personnel will complete courses specified by PONTIAC to
address those deficiencies. PONTIAC agrees to consult with the established
dealer advisory committee before adopting additional required training. PONTIAC
will consider the committee's recommendations as to content, cost and frequency
of additional required training.
NINTH
DEALER FACILITY APPEARANCE
Customers have high expectations for PONTIAC, its Products and dealers. As the
point of customer contact with PONTIAC Products, dealership Premises play a
significant role in determining whether a customer's sales and service
experience is consistent with these expectations. PONTIAC and Dealer recognize
it is essential that PONTIAC'S image and identity be reinforced at the
dealership level. Dealer therefore agrees to provide facilities that meet, in
appearance and quality, PONTIAC'S reasonable requirements. To assist Dealer,
PONTIAC will counsel and advise Dealer concerning facility appearance and
design. PONTIAC agrees to consult with the established dealer advisory
committee when developing appearance guidelines.
TENTH
TOOLS AND EQUIPMENT
PONTIAC and Dealer acknowledge that a properly equipped dealership promotes
customer satisfaction and sale of PONTIAC Products. PONTIAC agrees to provide
Dealer with lists of essential tools and necessary equipment. PONTIAC will
endeavor to select tools and equipment whose acquisition cost is reasonable.
Dealer agrees that it will acquire and use essential tools and necessary
equipment identified by PONTIAC. PONTIAC agrees to consult with the established
dealer advisory committee prior to recommending or requiring tools or equipment
other than those determined by PONTIAC to be essential or necessary.
ELEVENTH
BUSINESS PLANNING
PONTIAC has established a business planning process to assist dealers. Dealer
agrees to prepare and submit any reasonable business plan required by PONTIAC.
PONTIAC agrees to provide Dealer with information specific to its dealership and
to assist Dealer in its business planning. PONTIAC agrees to improve the
business planning process based on experience with it and to consult with the
established dealer advisory committee before making substantive changes to the
process.
TWELFTH
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DEALER SALES AND SERVICE REVIEW
PONTIAC'S willingness to enter into this Agreement with Dealer is based in part
on Dealer's commitment to effectively sell and promote the purchase, lease and
use of PONTIAC Products in Dealer's Area of Primary Responsibility ("APR"). The
success of PONTIAC and Dealer depends to a substantial degree on Dealer's taking
advantage of available sales opportunities.
EXECUTION OF AGREEMENT
This Agreement and related agreements are valid only if signed:
(a) on behalf of Dealer by its duly authorized representative and, in the
case of this Agreement, by its Dealer Operator; and
(b) on behalf of PONTIAC by its General Sales and Service Manager and his
authorized representative.
LITHIA MOTORS, INC. PONTIAC DIVISION
DBA LITHIA PONTIAC General Motors Corporation
By By
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Dealer Operator General Sales & Service Manager
March 10, 1993 March 10, 1993
By
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Authorized Representative
March 10, 1993
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