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Legal fund to protect Dealers
NADA asks GM dealers to fund legal counsel
Posted Wednesday, Apr 29, 2009, 2:38 pm in Employee News
The National Automobile Dealers Association, bracing for a possible General Motors bankruptcy, is asking dealers to contribute to a legal fund to protect their interests, the Automotive News reported.
NADA, with the GM National Dealer Council, sent retailers a memo April 24 asking them to sign an agreement to hire lawyers and contribute $2,000 for each of their GM stores, the industry trade paper said. NADA may later ask each participant to contribute an additional $1,000 for each location, the story said.
NADA said “it is critically important” that dealers have legal advisers with expertise in bankruptcy and corporate restructuring,” the Automotive News said. GM dealers will have a better chance of being treated fairly in the event of a GM bankruptcy if a national law firm represents them as a group, the association said in the story.
A similar letter was sent to Chrysler dealers the same day, Jim Morris, NADA’s franchise attorney told the paper. (Automotive News)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
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