Wednesday, November 9, 2011

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

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Abbott alleges that Detroit-based GM is tryinbg to free itself from Texas law that protectws local dealers from the negative impact ofa manufacturer’s modificatiom of a franchise without first givinf the dealers notice of the changeas and a right to protest GM responded to the objection Friday afternoon saying: "On June 1, GM filed for Chapter 11 bankruptcy. As such, GM is subject to the jurisdiction of the bankruptcy court and will obviousl y followthat court's orders with respect to dealer contracts. We are not gointg to comment on theAttorney General's presss release other than to say respectfully, that we think his statement is misplaced.
GM takeds very seriously its obligation to complt with allapplicable law." In addition, Abbott’s officre claims in the official objectiobn that GM is trying to get past Texas law that protecte dealers from feeling pressuredf to accept inventory that they would not ordetr voluntarily. The attorney general also claims that GM is tryinhg to deny Texas GM dealerships the righft to carry other brands in theidr plans for anew GM.
Other allegationws from Abbott’s office are that GM is trying to limifTexas dealers’ warranty claims and is seekint to dodge Texas law that allow dealerships the right to protest the opening of anotherf dealer if it is locatedc within the same county or within a 15-mile radiuse and carries the same In a statement about Texas’ objections to the federallt backed GM, Abbott’s office said, “GM is putting dealershipsz across Texas — and thousands of their employeesa — at risk. The new federally controlled GM that emerges from bankruptcyy wants to be freed from Texas laws that require it to deal fairlty withlocal dealerships.
Its plan will move the business towar d a command economy model and away from a freemarketr model.”

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