The way General Motors’ trying to avoid state laws while dealing with dealers compelled Ohio’s attorney general filed an objection on Friday.
GM’s wrongful handling of dealers arose a joint protest from attorney general Richard Cordray along with attorneys general from Nebraska and other states.
As a part of it’s post bankruptcy reorganization GM is looking for a illegal dumping of about 1,300 dealers, while it plans to sell the good assets to a new company and leave behind the debts.
According to documents filed in the U.S. Bankruptcy Court for the southern district of New York, Cordray’s complaint centers on those remaining dealers, who must accept changes to their franchise contracts to stay with GM.
The attorney general claims that GM’s requirements “unquestionably violate Ohio law and are completely contrary to the purpose of having state franchise laws,
Ohio laws prohibit manufacturers from forcing dealers to dump other brands or accept inventory that they did not order. But GM’s modifications forcing dealers to stock more inventory, stop selling non-GM vehicles and accept new or relocated GM dealerships nearby without protest.