Automotive Industries

Issue: Jan 2010

Auto Industry Update - GM and Chrysler Dealer Arbitrations

by Steve Barclay

In December, Congress passed a bill that grants certain GM and Chrysler dealerships and former dealerships the right to demand binding arbitration with GM or Chrysler to determine whether that manufacturer must be required to restore the dealership to the manufacturer’s dealer network. The bill was signed by President Obama and became effective on December 16, 2009.

Bruce Bennett, Director of Government Relations for Pathman Lewis has been involved in the dealer termination issue and the efforts to enact dealer favorable legislation from the beginning. Through Bruce’s efforts he was instrumental in getting the Florida Congressional Delegation to support the terminated dealers with a legislative solution.
A few important points that dealers should be aware of:

Dealerships covered by the law will receive a “summary” from their manufacturer/former manufacturer of their rights under the law and the specific criteria pursuant to...