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to create a program to address the issue of high interest rates.
The proposals suggested a program by which retail customers could
finance GM vehicles at a below-market interest rate.
The car divisions (i.e., Chevrolet, Buick, GMC, Pontiac,
Oldsmobile, and Cadillac)7 initially opposed retail rate support
programs. These proposals were not implemented in 1980 due to
perceived administrative difficulties and a lack of the necessary
internal support.
In 1981, GM executives again made proposals to address the
issue of high interest rates. This time, GM initiated programs
through GMAC which made below-market interest rate financing
available to retail customers who purchased GM vehicles (the
retail rate support program). The motivation for the program
included stimulating retail demand for cars and increasing market
penetration.
GMAC's initial reaction to the initial proposed retail rate
support program was negative. GMAC was concerned with the impact
of the retail rate support program on independent GM dealers, who
were GMAC's customers, and the independent GM dealers' ability to
earn dealer finance income. See supra pp. 7-8. GM's initial
7 The parties referred to the different divisions of GM
(i.e., Chevrolet, Buick, GMC, Pontiac, Oldsmobile, and Cadillac)
as "marketing divisions", "car divisions", and "vehicle
divisions" of GM. For clarity and uniformity, we shall refer to
them as car divisions.
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