A Minneapolis Business Journal Reporter called me the other day to tell me Twins catcher Joe Mauer had just bought the land on which Denny Hecker’s Southview Chevrolet (now closed) sits. Once his story printed, Mauer’s brother Bill called the reporter to say he had bought the land, not his brother Joe.

The source for the story was the Mauers’ grandfather who claimed Joe was setting Bill (who had been a sales manager at Southview) up with the dealership. Bill declined to say how he paid for the land.

To read story, click: Joe Mauer buys auto lot formerly run by Hecker.

Bill (or Joe) Mauer reportedly is trying to get the rights to the GM franchise, but the auto maker is blocking the plate, so to speak, in true Mauer fashion. For the record, Joe Mauer grew up in the Minneapolis region and is the best catcher in Major League Baseball today, and potentially will be the best catcher in the history of the game once he retires. In other words, he’s a Minneapolis icon.

A couple of years ago, this would have been a no-brainer for GM. But now, the world is much different. Unfortunately for Mauer, this is one hit he likely won’t get.

GM is in the process of eliminating about 1,300 dealerships (not counting Saturn, Saab and Hummer). Anyone getting a GM franchise today is going to have to have a proven track record of running a dealership.

For Bill, being a sales manager in the Southview dealership actually could be a strike against him. It was part of Denny Hecker’s empire which suffered a specatular collapse late last year. In fact, a grand jury right now is deliberating whether to bring charges against Hecker. He allegedly has defaulted on approximately more than a billion dollars in loans along with having a DUI in the last 12 months.

In other words, working for Hecker is not something to put on the resume when trying to get a dealership.

Another issue is that athletes in recent years have a had a poor track record owning dealerships. Several years ago, Mel Farr, a former Detroit Lion and Ford favorite, watched his automotive empire collapse. He targeted the subprime market, a tough one to succeed in.

In February, former Houston Oilers defensive lineman Ray Childress shut down his 40-acre auto mall in Texas while New Orleans Saints running back Deuce McAllister closed his Jackson, MS, Nissan dealership in March after filing bankruptcy.

Michael Jordan’s Lincoln Mercury store in North Carolina also closed earlier this year although, his Nissan dealership still is going strong.

One group of athletes that have done well in the auto business are race car drivers. Roger Penske has the second largest dealer group in the world while Rick Hendrick, owner of Hendrick Motorsports, owns more than 60 dealerships across the country. There are several others.

For now, it looks like Mauer will end up owning an expensive used-car lot.

Following a five-hour meeting on Friday and numerous email exchanges over the weekend with NADA officials and members of its national dealer council, General Motors is amending the new — and stringent — franchise agreements it mailed to surviving dealers last week. (NADA Approves GM’s Modified Dealer Participation Pact).

The meeting went so long, members of GM’s contingency, including executives Troy Clarke and Mark LaNeve, had to reschedule their flights back to Detroit.

You can read my column on the danger these contracts pose to the automotive retail system here.

GM is overnighting its clarifications and amendments to its dealers today. Dealers now have until Monday June 15 to sign and return the agreements (extended from Friday June 12).

The amendments, or clarifications, for the most part, soften language found in the agreements mailed last week.

NADA also is sending a letter to its GM dealer members outlining the auto maker’s clarifications.

Regarding the more demanding sales requirements, NADA’s letter says GM will hold a Reinvention Business Plan with its continuing dealers in the first quarter of next year “where ‘appropriate’ sales targets will be agreed upon.” The new requirements will take effect in the second half of 2010 or in 2011, “based upon overall market factors.”

Similar language is provided for the new inventory requirements.

Meanwhile, NADA says GM has agreed to work with its dealers “reasonably” regarding exclusive showrooms and may extend the December 31, 2009 deadline in certain cases.

GM also clarifies that the dealer’s waiver of protest “is not designed to allow GM to add new dealers into an existing dealer’s area of responsibility. GM intends only to realign current points, not add dealers to a market.”

According to NADA, GM will eliminate paragraph 8 from the agreements sent last week, which provided special rights to GM in cases where a dealer allegedly fails to meet the requirements of its franchise agreement. Instead of reserving special rights, any remedy sought by GM will be in accordance with state franchise laws.

GM also is providing clarifications to the wind down agreements it sent to dealers it is terminating later next year.

Amidst the frenzied activity surrounding General Motors’s bankruptcy filing yesterday, Saturn also filed chapter 11.

Saturn Spokesman Steve Janisse tells me the filing should not impact the potential sale of the brand either postiively or negatively.

Technically, that may be true, but with Saturn in bankruptcy, it probably is easier for the brand to eliminate dealerships. Recent media reports regarding Roger Penske’s involvemnt with Saturn confirm what I’ve been hearing for a couple of months.

Sources tell me Penske is investigating a partnership with Nissan Renault to sell Korean-built Renault Samsung vehicles in the U.S. using the Saturn retail network.

It’s likely that Penske, who already distributes Smart, needs signifcantly fewer dealerships to sell Samsungs than Saturn’s current 384. I’m guessing here, but if Penske and Carlos Ghosn decide to pull the trigger on the deal, Saturn could lose anywhere from 130 to 150 dealers in the next couple of months.

So if you’re a Saturn dealer, you might want to study the Smart distribution model and its dealerships — you know, just in case.

You grew up watching your grandparents build a business, investing their life savings along with their tears and sweat. Your father, and perhaps mother, learned from them the value of hard work, honesty and the importance of community. They then taught the same lessons to you.

You watched as your grandparents — and parents after them — gave their money and time to civic organizations, schools and churches while providing jobs to people in town.

Perhaps you worked alongside your parents as a youngster, washing cars, cleaning windows in the showroom or sweeping out the service bays.

And then it was your turn to carry on the legacy. You were loyal to the manufacturer even when you weren’t sure what that was going to get you. You endured zone managers who often were fresh-faced, earnest kids out of college trying to tell you how to run your business.

You listened as the regional manager plopped a market study on your desk saying the market could sustain multiple dealers, while defending putting another dealership a few miles away.

You invested millions building a new facility to be compliant with your manufacturer’s plan of the month.

You tried to find ways to work with the manufacturer when it needed you to take extra vehicles. Yeah, they put the gun to your head and threatened your livelihood to “encourage” you to play ball but you stuck with the manufacturer through the tough times, doing what was necessary to help the brand survive.

Perhaps you even traveled to the nation’s capital a few months ago to lobby Congress to provide emergency funding to your manufacturer.

In February, when your auto maker’s survival was in serious doubt, you ordered more inventory because the company president asked you to.

Even with car sales plummeting, you managed to keep your business profitable and your CSI scores high. You were confident when the rumors of dealership reductions played out in the media. You’ve done everything necessary to protect your business, you’ll be safe.

And then the man in the brown uniform delivered a letter on May 14.

You knew without opening it. The business your grandparents, your parents and your family have built is being ripped from your hands and handed to the dealer a few miles away – the same one your regional manager argued would be good for the marketplace.

All of your investment is gone because the manufacturer, using the protection of bankruptcy, says it doesn’t have to pay you anything.

All because some consultant convinced President Obama’s task force that auto makers need dealers selling higher volumes. “You need more throughput,” they say. Even though they didn’t know what the word meant a couple of months ago.

The manufacturers didn’t push back because they see it as a great opportunity to force their dealers into complying fully with their demands while circumventing state-franchise laws.

The Federal government sees only the bottom line while turning its back on small business. The finance institutions are rewriting the rules and likewise have turned their backs on small business.

And the courts are rubberstamping everything the manufacturer and the task force want.

For dealers, there is no recourse.

This is America? I wonder if this is what the founding fathers envisioned.

Several weeks ago, President Obama guaranteed the warranties for Chrysler and General Motors vehicles. A noble gesture, but it means nothing if the dealers can’t get the parts to fix the vehicles. Apparently, it’s starting to become a problem for Chrysler dealers and likely will for GM dealers once that company declares bankruptcy.

Chrysler Vice President Steven Landry told dealers on a conference call just under two weeks ago that the auto maker was watching the parts inventory closely and managing it to maintain a 30-60 day supply.

With Chrysler in bankruptcy, several suppliers have stopped shipping parts to the auto maker. Add to that, none of the plants are running at the moment which means Chrysler is ordering minimal parts, if any.

Independent shops are starting to report they can’t get Chrysler parts.

Not only is the problem costing dealers service work, it’s going to start costing them sales. Yesterday a friend told me she needs to get the air conditioning fixed on her Dodge Caravan but the dealer can’t do it because the part is on backorder and has no idea when it will be shipped. I suggested an idnependent shop, but the vehicle is under warranty — which at this moment, isn’t worth the paper it’s printed on.

She’s leasing the vehicle and will try to turn it in if she can’t the air conditioning fixed. But whether she sticks with Chrysler, don’t count on it. “It’s not worth the hassle,” she says.

If you’re a General Motors or Chrysler dealer, this week might feel a little like high school when you were anxiously waiting for the coach to post the list of players who made the final cut for the sports team. Only this time, the stakes are much higher.

GM is beginning to send letters this week to 1,000-1,200 dealers whose franchise agreements they do not plan to renew.

Last week, Judge Gonzalez who’s overseeing the Chrysler bankrutpcy, scheduled the hearing for the sale of Chrysler for May 27, which means the auto maker has to mail certified letters for Thursday (May 14) delivery to dealers it plans to keep. Additionally, the list will be filed with the bankruptcy court on Thursday.

What about the dealers not on the list? No one seems to have an answer, although, lawyers involved tell me they think Chrysler also will notify those dealers on Thursday also.

(One caveat here — all of this is dictated by the court, and is subject to change.)

You can find the ruling here. It’s docket #492 and is 20 pages long (not counting the four exhibits). If you’re a Chrysler dealer, have your attorney look at it because it outlines what your options are and the time frame to exercise them.

You’re going to hear a lot in the next several days about executory contracts, designated agreements that will be “assumed” by Chrysler and “assigned” to the new company. That’s legalese referring to which franchise agreements Fiat will honor.

Keep in mind, Thursday is only the first cut. The list is preliminary. It’s likely dealerships will be moved on and off the list in the next several days. There will be a 30-day period beginning Thursday in which dealers can argue and trade their way onto the list, while Fiat will move dealers off the list.

There will be a lot of horsetrading going on the next 30 days. It’s possible, Chrysler/Fiat will use the list and time to complete the Genesis project — that is, making sure each surviving dealership houses all three brands.

Additionally, GMAC likely will determine to which Chrysler dealers it will continue providing floorplan financing over the next few months.

Another key point, if you are a dealer who makes the cut and has one of the older Chrysler Direct Dealer Agreements, you will have to modify the contract to match the current and newer Sales and Service Agreements. Otherwise, you will not make the final list of dealers who survive.

Interestingly, Chrysler President and Vice Chairman Jim Press’ claimed last Friday on a conference call with dealers the auto maker does not have an active plan, nor knows who, how many or knowsd what the process will look like for determining which dealers to terminate (read the story from Friday here).

According to the letter of the law, Press might be right. I’m hearing Chrysler isn’t necessarily making the decision of which dealers to keep. Instead, it sounds like everybody (except for dealers) with a stake in the new company might have a say.That’s the Capstone Investment firm that’s advising Chrysler on its bankrptcy; Chrysler; Fiat; the U.S. automotive task force and GMAC.

Dealers tell us their that dealer council members have told them the criteria for which dealers to save will be based on geographic location, financial health, customer satisfaction, condition of facilities and whether the dealership is meeting its minimum sales responsibility.

The big questions that remain unanswered are: how will Chrysler notify the dealers whose franchise agreements are not being transferred to the new company; and what happens to those dealerships? Are their franchise agreements immediately voided or terminated once the sale to Fiat becomes official?

Stay tuned. We’re working to find the answers to those questions. As soon as we know, we’ll get the word out.

One other note, a source tells us NADA has retained law firm Squire, Sanders & Dempsey to represent “affected” Chrysler dealers, that is, dealers not on the survival list.

Ward’s reported last week, that Arnold & Porter LLP, the law firm NADA retained to represent Chrysler dealers in the bankruptcy case, informed the trade association it will not be able to continue defending dealers slated for termination, because their interests will conflict with surviving dealers.

Chrysler informed its national dealer council Tuesday in a meeting in Auburn Hills, MI, the company is evaluating the viability of its 3,200 dealerships based on geographic location, financial health, customer satisfaction, condition of facilities and whether they are meeting their minimum sales responsibility.

Also important, court filings seem to indicate dealers could learn how they stand with Chrysler as early as Friday.

You can read the story here.

The stories about a potential tie up between Saturn and Roger Penske might be a bunch of nothing. Someone floated Penske’s name to us three weeks ago, saying he might be interested. After a couple of phone calls, we determined there was no story yet, but decided to keep our ears to the ground.

Penske’s interest pretty much amounts to a “We might want to take a look at it.” Someone familiar with Penske says the business and racing icon’s folks haven’t even looked at the data to see if getting involved with Saturn is feasible.

There’s also a question of timing. General Motors likely would have to provide more time beyond its June 1 deadline of accepting “expressions of interest” for Penske to put something together.

At the moment, this is a non-story. It might have some legs later on, but that won’t be for a couple of weeks at least.

The two questions Chrysler dealers are asking, Am I on the list (the list of which dealers to eliminate) and What is the criteria for determining which dealers are on that list?

The problem is that Chrysler executives nor members of the automotive task force are talking, leaving just about everybody in the dark.

There are a couple of numbers being mentioned as to how many dealers are on the list. One is 800, based on some fuzzy math from court documents Chrysler filed yesterday.

Another number is much higher — in the 1,500 range. Chrysler President and Vice Chairman Jim Press told dealers last week there was no set number yet, but it would not be “catastrophic.”

Sources tell Ward’s that Chrysler put together as list as early as a month ago at the request of the Treasury Dept. and that the task force actually went through the list several days ago.

I’m speculating here, but I imagine Chrysler’s eight business centers helped put the list together. I can see it now. A business center manager with the zone managers sitting at a table going through list of their dealers determining which ones to eliminate.

You pushed back on taking extra inventory? you’re out. You swore at the zone manager in a meeting or on the phone? You’re out. You failed to upgrade your facilities? You’re out.

It probably was a tad more scientific than that, but until Chrysler steps up and says what the criteria is, then dealers should assume the worst.

The point is, Chrysler dealers have no protection now. Because of the bankruptcy, the state franchise laws provide no cover. Chrysler will use the bankruptcy to allow it to determine which dealers to pay incentive and warranty money to.

Also, the list of “bad” dealers probably already has been given to GMAC Financial, which will use that list to help determine which dealers it will provide floorplan financing to. So there is no protection from the financing sources.

Chrysler’s (Fiat’s) strategy appears to be separating the good assets from the “bad” assets. The good assets will be incorporated into the new Chrysler, while the bad are placed in a “new” holding company, given some money while being left to fend for itself, liquidating assets while defending lawsuits in court for the next 10 years. The problem, the unwanted dealers likely will be part of the “bad” Chrysler.

Here’s the scoop on Saturn… No real scoop until June 1.

If GM can put a deal together with a buyer, Saturn survives. If not, it’s dead at the end of the year.

By the way, we’re predicting Renault will be the manufacturing partner for Saturn, if the brand indeed, is sold.