June 19, 2009
Media Contact: Jenn Meale
Phone: (850) 245-0150
McCollum Files Objection to General Motors' Attempt to Amend Dealer Franchise Agreements
TALLAHASSEE, FL – Florida Attorney General Bill McCollum today filed an objection in the General Motors bankruptcy case in the U.S. Bankruptcy Court for the Southern District of New York to ensure Florida’s ability to regulate automotive manufacturers and protect consumers purchasing General Motors vehicles.
Unlike Chrysler’s recent bankruptcy where the company emerged under new ownership, General Motors will re-emerge from the process as a “new” version of itself. During the process, General Motors has asked that certain dealership franchise agreements be assumed and then assigned to “New General Motors.” However, before assuming the agreements, General Motors presented amended agreements which stated if dealers did not sign the amended agreements and sacrifice their statutory rights, their franchise agreements would be rejected in the bankruptcy process. General Motors has also sought to prevent the Florida Department of Highway Safety and Motor Vehicles from taking regulatory action against New General Motors, despite the fact that the company would have to apply for licensure and face concern over the amended agreements that violate Florida dealer laws. In addition to the concerns under Florida dealer laws, the Attorney General also asked the bankruptcy court to preserve the lemon law rights of Floridians, an unresolved issue thus far.