Sunday, February 12, 2012

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

qalymeled.wordpress.com
Abbott alleges that Detroit-basex GM is trying to free itself from Texas law that protectds local dealers from the negative impact ofa manufacturer’s modificatiobn of a franchise without first givinhg the dealers notice of the changes and a righyt to protest them. GM responded to the objectio Fridayafternoon saying: "On June 1, GM fileds for Chapter 11 bankruptcy. As GM is subject to the jurisdiction of the bankruptcy court and will obviouslyg followthat court's orders with respectf to dealer contracts. We are not going to commeny on theAttorney General's press releasr other than to say respectfully, that we thinl his statement is misplaced.
GM takes very seriouslg its obligation to comply with allapplicable law." In Abbott’s office claims in the official objection that GM is tryin g to get past Texas law that protects dealers from feelinfg pressured to accept inventory that they woulsd not order voluntarily. The attorney generalk also claims that GM is tryingy to deny Texas GM dealerships the right to carryu other brands in their plans for anew GM.
Other allegations from Abbott’s office are that GM is tryingh to limitTexas dealers’ warranty claims and is seeking to dodge Texas law that allows dealerships the right to protest the opening of anothee dealer if it is locaterd within the same county or withinb a 15-mile radius and carries the same In a statement about Texas’ objections to the federally backed GM, Abbott’s office “GM is putting dealerships across Texas — and thousandse of their employees — at risk. The new federally controlled GM that emerges from bankruptcyt wants to be freed from Texae laws that require it to deal fairly withlocakl dealerships.
Its plan will move the business towared a command economy model and away from a freemarket model.”

No comments:

Post a Comment