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Has anyone seen the announcement regarding Reynolds dropping out of the GM dealer systems business? How will this effect dealers on Reynolds now?

GMFixedOps

The announcement specifies GMs Integrated Dealer Management System which is a package that GM negotiated with Reynolds before the merger with UCS. Reynolds and GM disagree on the terms of the deal and Reynolds has decided not to offer this product to future customers. Both parties are suing each other over this issue.

From what I understand this will not affect any current customers including current IDMS Reynolds customers.

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Frank Burrows
fburrows@absdata.com

From the newsroom of Automotive News

Reynolds drops out of GM dealer system
Ralph Kisiel
SAN FRANCISCO -- Reynolds and Reynolds Co. says it is out of the General Motors Integrated Dealer Management System business.

That means Reynolds, the largest vendor of dealership software in the United States, no longer will sell GM's Integrated Dealer Management System.

It also means Saturn dealers get a reprieve. Reynolds was supposed to switch all Saturn dealers in North America from an ADP Dealer Services system to the GM Integrated Dealer Management System.

" It's quite clear at this point that that contract will not go forward," Reynolds Chairman Bob Brockman told Automotive News during an interview today. " We don't know what will happen to the Saturn dealers. That will be up to the Saturn dealers and General Motors. But Reynolds will not be part of any global Saturn contract."

The Integrated Dealer Management System is a package of computer software, hardware and services assembled to GM's specifications, then installed and maintained by Reynolds, or one of the three other GM approved vendors. The package is sold to dealers at a price negotiated by GM and the vendors.

A GM spokeswoman said Reynolds' withdrawal was its own decision. Reynolds and GM are embroiled in a court fight over terms of their 2005 contract for the system.