Rejected dealers are happy: lawmakers agree on arbitration plan!
By Andrew C., 30 Aug, 2010. 0 Comments
Rejected General Motors Co. and Chrysler Group dealers will be given access to third-party arbitration under criteria broader than that planned by the automakers after house and Senate leaders agreed to a legislative proposal for this purpose.
Senate Appropriations Committee spokesman John Bray said that a conference committee of congressional leaders granted a financial-services spending bill that included the dealer arbitration provision. Under the legislation, neutral arbitrators would be required to balance the economic interests of dealers, the companies and the public. In addition, the bill allows dealerships to "present any relevant information" during arbitration. If the dealers appeal their termination and win in arbitration, they would receive a letter of reinstatement from GM or Chrysler within seven business days of the arbitrator's decision. In a statement, House Majority Leader Steny Hoyer, D-Md., said that it is “imperative” that there is a transparent process that “gives dealers a chance to make their case for remaining open, while respecting the companies' need to return to profitability.”
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