Obama signs legislation giving rejected GM, Chrysler dealers arbitration to be reinstated

Rejected GM and Chrysler dealers may have some form of recourse, as President Obama signed into law, legislation that gives dealers access to neutral arbitration should they desire to be reinstated.

The automakers have a 30 day window in which to mail letters informing the rejected owners of their rights and specifically sighting the reasons why their franchise agreements were terminated.

Dealerships have 40 days to give notice that they intend to go to arbitration. The process must then be completed within six months, and those dealerships that are granted reinstatement must be so notified within 14 days.

The charge to get this bill through the legislature was spearheaded by House majority leader Rep. Steny Hoyer, D-Md and assistant Senate majority leader, Sen. Dick Durbin, D-Ill. The pair lead the movement after settlement talks between the companies and their franchisees stalled when the company devised an arbitration plan that applied the same criteria as the original termination assessments.

– By: Stephen Calogera

Source: Automotive News (Subscription Required)