In the past week or so, there has been movement by Chrysler and General Motors concerning the dealer closings that took place as each company was passing through bankruptcy last summer. More than 2,000 GM and Chrysler dealerships were closed.
GM had a process which has heard hundreds of dealers appeals and has reversed 70 cases. However, Chrysler did not have an appeals process. Recently Chrysler did set up an appeals program.
As a result of the closings, the U.S. Congress started considering legislation that would stop it.
Things continue to evolve over the issue. Representative Steve LaTourette (R-Ohio) has drafted an amendment to a financial services bill to provide more favorable arbitration rights to dealers. The amendment also takes away compensation dealers had requested to help them wind down their businesses.
In addition, General Motors and Chrysler agreed to arbitration on a limited number of issues. However, the Detroit Two said that they would remove their offer if Congress continued to pursue its dealer legislation. Meanwhile, dealers want the arbitration to consider more than what the auto makers require.
via Detroit News
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