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Senator accuses GM of pressuring dealers

Posted Tuesday, Jul 14, 2009, 1:54 pm in Employee News

A senator and some dealer groups are accusing GM of pressuring dealers to sign a statement saying they oppose legislation to restore terminated dealerships’ rights, according to an Automotive News story.

Sen. Charles Grassley, R-Iowa, complained that GM’s district offices were “strong-arming” their dealers into signing the statement, the story said.

“Some dealers fear that GM could take action against them if they do not sign a letter of opposition” to the bill, Grassley said in a letter yesterday to GM CEO Fritz Henderson. “It’s alarming to have GM corporate leaders force dealers — some who are losing everything they worked hard to build — to take an active stand against it.”

The story also quotes an e-mail from GM’s Washington spokesman that says: “Many dealers who signed participating agreements are ready to move forward, and so are we as a new company. Certain proposed legislation puts our progress and viability at risk. We have a right to have our voice heard, too, and we look forward to responding to Senator Grassley’s letter.” (Automotive News)
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