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Excess dealerships — amounting to at least 20 percent nationally — weigh down the retail network as a whole, ultimately costing sales and adding up to $4 billion annually to the automakers' costs, industry analysts and many dealers say.

The competitive disadvantage is wide for dealers, too. The independent dealerships that sell GM, Ford and Chrysler vehicles in the United States — 15,710 in all — sell half as many vehicles per store, on average, as top Japanese rivals, who have fewer than 4,000 retail outlets in the United States.

"We all agree we have too many dealers, but nobody wants to raise their hand and say, 'I'll go,' " said John Daoud, president and chief executive officer of Al Long Ford, a Warren, Mich., dealership founded by his grandfather.

• To promote the compelling interest of the public in fair business relations between dealers and grantors, and in the continuation of dealerships on a fair basis;
• To protect dealers against unfair treatment by grantors, who inherently have superior economic power and superior bargaining power in the negotiation of dealerships;
• To provide dealers with rights and remedies in addition to those existing by contract or common law;

135.03 Cancellation and alteration of dealerships. No grantor, directly or through any officer, agent or employee, may terminate, cancel, fail to renew or substantially change the competitive circumstances of a dealership agreement without good cause. The burden of proving good cause is on the grantor.

135.04 Notice of termination or change in dealership. Except as provided in this section, a grantor shall provide a dealer at least 90 days’ prior written notice of termination, cancellation, nonrenewal or substantial change in competitive circumstances. The notice shall state all the reasons for termination, cancellation, nonrenewal or substantial change in competitive circumstances and shall provide that the dealer has 60 days in which to rectify any claimed deficiency.

135.06 Action for damages and injunctive relief. If any grantor violates this chapter, a dealer may bring an action against such grantor in any court of competent jurisdiction for damages sustained by the dealer as a consequence of the grantor’s violation, together with the actual costs of the action, including reasonable actual attorney fees, and the dealer also may be granted injunctive relief against unlawful termination, cancellation, nonrenewal or substantial change of competitive circumstances.

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