General Motors cut off its dealer incentive programs in New Hampshire including it so-called “stair-step programs or other contests that reward dealers for hitting factory-set sales goals, in response to a new state law that mandates all automakers to provide advance notice regarding their sales goals for all dealers within the state, as well as how those objectives are calculated in writing.
"Dealers want to know that the manufacturer isn't simply throwing a dart at a board" to set their targets, said Peter McNamara, president of the New Hampshire Automobile Dealers Association, which lobbied for the law. "If there is a good rationale for why one dealership has a 50-unit objective and another has 25, why not disclose it?"
However, executives at General Motors insist that the law would greatly hamper its ability to respond rapidly to changes in the market, such as fresh incentives from a rivals, as well as (likely) give advance notice of their intentions to those same competitors.
While several other states have similar regulation, they are only required to disclose details of their sales incentive programs if they are specifically requested by the dealerships, themselves.