Top
GM STOCK:
GM25.75  chart0.00
02-08-2012 16:00

California Chevy Dealer Unhappy With Arbitration Outcome, Sues For Franchise


California Chevy Dealer Unhappy With Arbitration Outcome, Sues For Franchise

by
Aug 21st, 2010

When General Motors announced the completion of the dealer arbitration process last week, it most likely hoped that the rather unpleasant trimming operation was a thing of the past. Alas, that’s not the case, since Rally Auto Group of Palmdale, California is not giving up without a fight.

Before GM’s decision to decrease its dealer count by nearly 2,000 stores, Rally carried The General’s Chevrolet, Cadillac, Buick, Pontiac, and GMC brands. However, the arbiter in Rally’s case decided to give its Chevy franchise to a nearby Saturn store, allowing Rally to continue selling the Cadillac, Buick, and GMC brands.

According to Rally, the arbiter erred in splitting the franchises: under the dealer arbitration law passed by Congress last year, the judge should have either kept the whole dealership intact or ordered the entire operation to be closed completely.

As of this writing, Rally Auto Group is the only GM dealer to sue in the aftermath of the dealer arbitration process. You can bet we’ll be following this one closely.

[Source: Automotive News (sub. req.) via Autoblog]

No ResponsesLeave a comment
Add a commentGet a Gravatar

* Name

* Email Address

Website Address

Notify me of followup comments via e-mail. You can also subscribe without commenting.

Sponsors
Subscribe By Email
* indicates required
Connect With Us
GM Authority on Facebook GM Authority on Twitter GM Authority on YouTube Subscribe with RSS
Call Us

313 355 3GMA         (313 355 3462)
GM Authority Podcast
Trending
Weekly Poll
Sponsors
Galleries
2011 Opel Corsa OPC Nurburgring EditionGM Authority Garage - 2011 Chevrolet Malibu LTZGM Authority Garage - 2011 Cadillac CTS Coupe V62010 Chevrolet Volt MPV USPTO2000 Cadillac LMP2010 Chevrolet Silverado HDWordless Wednesday - Lumina Eyebrows2012 Buick LaCrosse eAssist First DriveBecker Auto Design Cadillac Escalade ESV