Chevy dealer wins bid for reinstatement in first disclosed GM arbitration case

Article by Christian Andrei, on August 27, 2010

A Michigan Chevrolet dealer won on May 14 a bid for reinstatement against General Motors Co. -- one of the first arbitration decisions to be handed down.

After the arbitrator ruled that Lou LaRiche Chevrolet has what it takes (the skill and financial resources) to succeed as a dealership, the dealer was informed that he will soon receive a letter of intent from GM.

The decision stated that the arbitrator recognizes GM's overall business plan as well as the urgency of its actions but that it is convinced that the dealership has the "financial wherewithal and will to succeed and to make a positive contribution to the overall GM dealer network and the public." 

At the arbitration hearing last month, former GM CEO Fritz Henderson had testified, saying that the dealer cuts are essential to GM's profitability, according to the dealer's attorney, Christopher DeVito of Cleveland.

The lawyer revealed that Henderson didn't actually comment on anything applicable specifically to Lou LaRiche Chevrolet's case. DeVito described Henderson's testimony as "ineffective."

At the April 27-30 hearing in Southfield, Mich., Henderson was GM's first witness. Lou LaRiche executive manager Scott LaRiche, said that the ruling is a relief and that he has always hoped that the right thing was going to be done. 

Topics: chevrolet, gm, dealer

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The Shooting Brake is probably the least rendered body shape in the automotive world. But it’s also the most sought after design among car nuts for its unique, old-fashioned charm....
by - January 23, 2017
Perhaps to make the upcoming Valentine’s day more special, Tinder dating app and Ford UK have cooked up a special blind date for all the single blokes and chicks in...
by - January 23, 2017
2017 is undeniably a very busy year for BMW. After introducing the new 4-Series, the German automaker has just released several new updates. In relation to this, BMW is also...
by - January 23, 2017
The renowned Shelby Super Snake is now 50 years old! As we greet the Super Snake a “happy birthday” or a “happy anniversary,” Shelby itself is celebrating half a century...
by - January 23, 2017
Nearly a year after the Subaru XV Concept was unveiled at the 2016 Geneva Motor Show in Switzerland, this SUV study is making its North American debut at the 2017...
by - January 23, 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