February 17, 2010

David Shepardson / Detroit News Washington Bureau

Washington -- A Michigan member of Congress today accused General Motors Co. of attempting to circumvent a new law that allows closing dealers to appeal.

Rep. Pete Hoekstra, R-Holland, sent a letter today to GM's chairman and CEO Edward Whitacre Jr., questioning the company's decision to open new dealerships in areas where closing dealers are appealing.

Hoekstra and some auto dealers argue that by opening a new GM dealership in an area, it makes it more difficult for a closing dealer to win an appeal.
"GM is now awarding new franchises in market areas where a wind-down dealer has filed for arbitration," Hoekstra said. "It is clear that this action circumvents the intent of the law and that GM may not be entering the arbitration process with an open mind."

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