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Abbott alleges that Detroit-based GM is tryinv to free itself from Texas law that protects loca dealers from the negative impact ofa manufacturer’s modification of a franchis without first giving the dealers noticee of the changes and a right to protestf them. GM responded to the objection Fridagafternoon saying: "On June 1, GM filed for Chaptere 11 bankruptcy. As such, GM is subject to the jurisdiction of the bankruptcg court and will obviouslhy followthat court's orders with respect to dealeer contracts. We are not going to commenrt on theAttorney General's press release other than to say respectfully, that we think his statement is misplaced.
GM takes very seriouslgy its obligation to comply with allapplicable law." In addition, Abbott’s office claims in the officiak objection that GM is trying to get past Texaxs law that protects dealers from feelinvg pressured to accept inventory that they wouldr not order voluntarily. The attorney general also claims that GM is tryinbg to deny Texas GM dealerships the right to carry other brands in their plans for anew GM.
Othedr allegations from Abbott’s office are that GM is tryingh to limitTexas dealers’ warranty claims and is seekinv to dodge Texas law that allows dealershipsd the right to protest the openinf of another dealer if it is locatesd within the same countyg or within a 15-mile radius and carries the same line-make. In a statemeny about Texas’ objections to the federally backed GM, Abbott’s office “GM is putting dealerships acrosdTexas — and thousands of theie employees — at risk. The new federally controlledd GM that emerges from bankruptcy wants to be freex from Texas laws that required it to deal fairly withlocal dealerships.
Its plan will move the businesz toward a command economy model and away from a freemarkert model.”
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