Chevy Dealer Wins in First Disclosed GM Arbitration Case

WASHINGTON - In one of the first arbitration decisions involving General Motors Co., a Michigan Chevrolet dealer won his bid for reinstatement and has been told he will be receiving a letter of intent from the manufacturer, reported Automotive News.

The arbitrator ruled that Lou LaRiche Chevrolet, of Plymouth, Mich., has the skill and financial resources to be a successful dealership.

“While the undersigned arbitrator gives credence to GM's overall business plan and in fact acknowledges the urgency of many of its actions, the characteristics of this specific dealership are convincing that it has the financial wherewithal and will to succeed and to make a positive contribution to the overall GM dealer network and the public,” the arbitrator's May 14 decision said.

Former GM CEO Fritz Henderson had testified at the arbitration hearing last month that overall dealer cuts are essential to the company's profitability, the dealer's attorney, Christopher DeVito of Cleveland, said in an interview.

Henderson made no comment that applied specifically to Lou LaRiche Chevrolet's situation, the lawyer said.

“Fritz Henderson's testimony was ineffective,” DeVito said. “It didn't carry the day.”

Henderson was GM's first witness at the April 27-30 hearing in Southfield, Mich., the lawyer said.

“After a year of getting kicked in the head every single day, this is such a relief,” said Lou LaRiche executive manager Scott LaRiche. “But right from the beginning, we've always hoped that somewhere, someone was going to do the right thing.”

GM declined to comment today.

“We respect the confidentiality of our relationships with each of the dealers who are affected,” GM spokeswoman Ryndee Carney said.

Although the LaRiche decision is the first publicly known arbitration judgment involving GM, Carney said it is not the first to be handed down since arbitrations began last month.