Providers and Administrators in blue 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

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →