arbitration process for rejected GM, Chrysler dealers

[rickaren]

Obama’s signature kicks off arbitration process for rejected GM, Chrysler dealers

Posted on Thursday, December 17th, 2009 at 2:43 PM EST.(Employee News)

President Barack Obama signed legislation that would give rejected General Motors Co. and Chrysler Group dealers access to neutral arbitration if they want to be reinstated, kicking off a six-and-a-half months arbitration process, the Automotive News reported.

GM and Chrysler now have 30 days to send letters to the owners of about 2,150 rejected dealerships informing them of their rights under the new law and spelling out the reasons that their franchise agreements were terminated, the trade paper said. With Obama’s signature, the eliminated dealerships have 40 days to give notice that they intend to seek arbitration, the Automotive News said.

Arbitration must be completed within six months, and dealerships that win must receive a letter of intent from the automakers within another 14 business days, the publication said. The legislation that Obama signed was a $446 billion spending bill that contained the dealer-arbitration provisions spearheaded by Rep. Steny Hoyer, D-Md., the House majority leader, and Sen. Dick Durbin, D-Ill., the assistant Senate majority leader. (Automotive News)