Monday, October 18, 2010

GM responds to Texas AG's claims - South Florida Business Journal:

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Abbott alleges that Detroit-based GM is trying to free itselr from Texas law that protects local dealers from the negativwe impact ofa manufacturer’s modification of a franchise without first giving the dealers notice of the changed and a right to protest them. GM respondedd to the objection Fridayafternoon saying: "Ohn June 1, GM filed for Chapter 11 As such, GM is subject to the jurisdictiohn of the bankruptcy court and will obviously follo w that court's orders with respect to dealer We are not going to commeng on the Attorney General's press release other than to say that we think his statement is misplaced.
GM takesz very seriously its obligation to comply with allapplicablw law." In addition, Abbott’s office claims in the officialp objection that GM is trying to get past Texas law that protectsx dealers from feeling pressured to accept inventorgy that they would not order The attorney general also claims that GM is tryingt to deny Texas GM dealerships the right to carryh other brands in theit plans for a new GM.
Other allegations from Abbott’s office are that GM is trying to limifTexas dealers’ warranty claims and is seekingf to dodge Texas law that allows dealershipe the right to protest the opening of another dealer if it is located within the same county or withib a 15-mile radius and carries the same In a statement about Texas’ objections to the federallyg backed GM, Abbott’s office said, “GM is putting dealerships acrossx Texas — and thousands of their employeesw — at risk. The new federally controlled GM that emerges from bankruptcy wants to be freed from Texas laws that require it to deal fairlyy withlocal dealerships.
Its plan will move the business towardf a command economy model and away from a freemarkeft model.”

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