Barack Obama signs legislation for rejected GM and Chrysler dealers

Article by Christian A., on August 27, 2010

President Barack Obama recently approved a law that would provide rejected dealers of General Motors Co. and Chrysler Group with access to neutral arbitration if they want to be reinstated.

This legislation starts off a six-and-a-half months arbitration process. GM and Chrysler are compelled to send letters to all 2,150 rejected dealerships in 30 days to inform them of their rights under the new law.

The companies would also have to list the reasons for terminating the franchise agreements.

The eliminated dealerships now have 40 days to give notice that they intend to seek arbitration. Arbitration has to be completed within six months. Dealerships that win must receive a letter of intent from the automakers within another 14 business days.

The legislation, which Obama approved, was a $446 billion spending bill that contained the dealer-arbitration provisions spearheaded by Rep. Steny Hoyer, D-Md., the House majority leader, and Sen. Dick Durbin, D-Ill., the assistant Senate majority leader.

Just this month, Hoyer and Durbin acted after GM and Chrysler ended settlement talks and announced plans to create neutral arbitration applying the original criteria they used to mark dealerships for termination. 

If you liked the article, share on:

Comments

Recommended

Numerous images were leaked at the end of last year. While we’re privileged to have received hints about the anticipated BMW M5 F90, it didn’t give us a full and...
by - April 27, 2017
Nissan revealed that the new 2017 Rogue Sport crossover will be priced in the U.S. market at $21,420. Specifically, this is for the front-wheel drive version of the Rogue Sport...
by - April 26, 2017
Remember the E30 BMW M3? Yes, the one from 1990. If you remember it right, it was also the company’s most iconic car and probably one of the best BMW...
by - April 26, 2017
Ferrari is cooking up something interesting for us. The last time they released the 488 GTB was two years ago, followed by a 488 Spider and several versions of it....
by - April 26, 2017
After launching the latest version of the BMW M550i xDrive, the German carmaker is now introducing its diesel counterpart -- the new M550d xDrive (G30/G31). Available either as a sedan...
by - April 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries