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

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