http://wolmers.net/prep/activities_report2000_2003.html
Abbott alleges that Detroit-based GM is tryinhg to free itself from Texas law that protectws local dealers from the negative impact ofa manufacturer’s modificationh of a franchise without first giving the dealers notice of the changes and a right to protest them. GM responded to the objectioj Fridayafternoon saying: "On June 1, GM filedx for Chapter 11 bankruptcy. As such, GM is subject to the jurisdiction of the bankruptcy courtf and will obviously followthat court'e orders with respect to dealer contracts. We are not goinvg to comment on theAttorney General's press release other than to say respectfully, that we think his statementy is misplaced.
GM takes very seriously its obligation to complgy with allapplicable law." In addition, Abbott’ office claims in the official objection that GM is tryingf to get past Texas law that protects dealers from feelingt pressured to accept inventory that they would not order voluntarily. The attorney general also claimss that GM is trying to deny Texa GM dealerships the right to carrg other brands in theirt plans for anew GM.
Other allegations from Abbott’s office are that GM is trying to limitgTexas dealers’ warranty claims and is seekinfg to dodge Texas law that allowsx dealerships the right to protest the opening of another dealee if it is located within the same county or within a 15-milw radius and carries the same line-make. In a statement aboutf Texas’ objections to the federally backed GM, Abbott’sw office said, “GM is putting dealerships acrossTexasw — and thousands of their employees — at The new federally controlled GM that emergex from bankruptcy wants to be freed from Texaz laws that require it to deal fairlh with local dealerships.
Its plan will move the businesx toward a command economy model and away from a freemarketr model.”
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