Wallace offers this explanation. GM can also reward favored white dealers by selling them the assets of the failed dealership at cut rates. In fact they condone the actions of their managers. Senior executives don't take any action when they get repeated reports of racist incidents. This creates an intimidating atmosphere.
People stick their necks out and they get their heads chopped off.
In 1995 Jones was riding in a company car with two white GM executives. They were returning from a meeting in Detroit and Jones was arguing the case for a black dealer being slandered by the white managers for stealing money, a standard tactic, Wallace says, to discredit black dealers when they complain about the circumstances. Suddenly one of the white managers began to bash Jones in the face with his fists, bloodying him. I'm going to beat your ass, you black motherfucker. The manager behind the wheel did nothing.