Newsflash - the cost of your resto probably just went up (by John Nasta)
I was talking this morning with one of the major manufacturers of reproduction sheet metal, emblems, moldings, and lenses. Apparently they are not able to ship a major portion of my last order because they received a "cease and desist" order from GM. It seems that The General is putting the clamp on the manufacture and distribution of all unlicensed GM reproduction parts. Manufacturers are allegedly being given a few choices: 1) Form a "strategic partnership" (of sorts) with GM, which involves buying into a licensing program. It also allows GM to inspect and approve your manufacturing *and* allows them to audit your books. The premise is that every restoration part essentially becomes an Authorized GM Restoration Part. The good news is that this hopefully will mean better quality control. The bad news (for us) is that GM gets a cut from every part sold (which is why they reserve the right to audit), and of course these commissions and audits all add up to increased production costs, which will undoubtedly trickle down to the consumer level. I certainly can't blame GM. They have designed innovative and unique products, at great expense and effort, consistently over a long period of time. That's a lot of work and intellectual property, and businesses like this are not easy to build. I believe they have a right to claim ownership of their designs, and to monitor the integrity of reproduction parts. Which parts are effected? Anything that is uniquely GM, especially scripts and emblems, and sheet metal parts. However, the full impact is not yet realized. I'm sure you will still be able to buy generic items like hardware, parts that were never made by GM in the first place, and parts that are already Authorized GM Restoration Parts. It certainly seems that the major manufacturers will certainly buy into the license agreement rather than lose their business. This particular manufacturer told me that they expected to have their deal wrapped up within a month. Lest we forget, I did mention that the manufacturers & dealers have a few choices... 2) If you have lots of time & money, and feel that you have sufficient cause, I suppose you could try to sue GM, but of course they would be suing you too at that point. 3) You could close your business. This may sound sarcastic, but I would imagine that some businesses will not want or be able to work with GM, and they will not legally be able to do business, at least in the U.S. So, in closing, it seems that GM is extending their market reach, and learning to make profits from their classic designs. Carroll Shelby is doing something unique yet similar. He has re-released the Shelby Cobra. The frame, suspension, sheet metal, detailing, etc. are made to exact original specifications. In a recent TV interview, he said something to the effect that he saw other people making a huge profit selling imitations of his vehicle, and had to ask himself why he was the only person not making money from it (sic). Will GM eventually go so far as to release a brand new "classic" Hurst/Olds or Z16 Chevelle? I seriously doubt it. But I think you can count on the idea that restoration parts prices will probably see a general increase in price in the near future, and we can only hope that the quality assurance level will rise concurrently. It seems that the next shoe will more than likely fall on the late-model aftermarket parts industry (if it hasn't already). Well, that's it from the news desk. And now, back to your regular programming... John Nasta http://johnnasta.com/6898 http://johnnasta.com/elcamino ----------------------------------------------------- To Unsubscribe please visit www.chevelles.net/list.html To start a new topic, send mail to: [EMAIL PROTECTED]
