agent Entrepreneur logo
MenuMENU
SearchSEARCH

Legislative Effort Moves Forward Despite Promises From GM and Chrysler to Address Dealership Closures

December 8, 2009
2 min to read


Despite General Motors and Chrysler announcing comprehensive plans to resolve concerns by dealers who were cut or are winding down, the National Automobile Dealers Association (NADA) continued this week to pursue legislation to reverse dealer terminations.

Last Thursday, Chrysler announced that it planned to institute binding arbitration for rejected dealerships. General Motors made a similar announcement the same day, and said it would begin to implement its plan in mid-January provided that legislation related to GM’s dealer restructuring does not move forward.

Ad Loading...

The NADA responded shortly thereafter, and said it would continue to pursue legislation to restore dealer rights as it maintains talks with the two automakers.

Yesterday, the association said discussions with House leadership and the House Judiciary Committee intensified over the weekend with regard to revisions to an amendment, sponsored by Rep. Steve LaTourette (R-Ohio), on the Financial Services appropriations bill. If successful, the revised amendment, which was unveiled today, would give shut-down dealers the right to arbitration, but it would not provide compensation for affected dealers.

General Motors officials said last week that the company’s plan offers a more certain and timely process than the legislation being considered. Officials added that the plan provides complete transparency, face-to-face reviews and binding arbitration, which, together, they said will result in dealers being reinstated.

GMAC Financial Services is also helping dealerships that are currently winding down their franchises by providing inventory financing for non-GM, used-vehicle stores. A company spokesperson told Automotive News that it is helping dealers in good standing with the company to transition to a different brand or to a used-only dealership.

The NADA so far supports the bill crafted by House leaders over the weekend, which is being sent to the Senate for consideration. The hope is to have the final spending measure and the attached agreement on President Obama’s desk by the Christmas recess. Aside from providing third-party arbitration, the bill directs arbitrators to consider a dealer’s past performance and current economic viability. The arbitrator will also consider a dealership’s demographics and geographic location.

Ad Loading...

“The revise amendment would give affected dealers transparency and the right to arbitrate,” read a statement from the NADA. “The arbitrator would balance the interests of the dealer, the manufacturer and the general public. The revisions reflect the goals pursued by the NADA for the past several months on dealer rights.”


More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →