Thursday, August 26, 2010

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

http://savechildrennow.org/about_america.html
Abbott alleges that Detroit-based GM is trying to free itseldf from Texas law that protects local dealers from the negativde impact ofa manufacturer’s modification of a franchise withouft first giving the dealers noticew of the changes and a righgt to protest them. GM responded to the objection Fridayafternoon saying: "On June 1, GM filesd for Chapter 11 As such, GM is subject to the jurisdictionb of the bankruptcy court and will obviously folloa that court's orders with respect to dealer We are not going to comment on the Attorneh General's press release other than to say respectfully, that we think his statement is misplaced.
GM takes very seriously its obligationb to comply with allapplicable law." In addition, Abbott’x office claims in the official objection that GM is tryiny to get past Texas law that protects dealerse from feeling pressured to accept inventory that they woulrd not order voluntarily. The attorney genera l also claims that GM is trying to deny Texas GM dealershipse the right to carry other brandzs in their plans for anew GM.
Otherd allegations from Abbott’s officwe are that GM is trying to limit Texas warranty claims and is seeking to dodge Texaas law that allows dealerships the right to protest the openinh of another dealer if it is located within the same countuy or withina 15-mile radiuds and carries the same line-make. In a statemen about Texas’ objections to the federally backedf GM, Abbott’s office said, “GM is putting dealershipss acrossTexas — and thousands of theitr employees — at risk. The new federally controlleds GM that emerges from bankruptcy wantas to be freed from Texas laws that require it to deal fairlty withlocal dealerships.
Its plan will move the business towardf a command economy model and away from a freemarkey model.”

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