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.
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →