GM fighting state efforts to protect auto dealers

FRANKFORT, Ky. (AP) - General Motors is fighting legislation in
at least five states that gives automobile dealers leverage over
carmakers in the scramble for franchises.
One such measure nearing final passage in Kentucky would give
auto dealers who lost franchises first crack at new ones.
GM announced Friday that it is launching an advertising campaign
this weekend in Kentucky in hopes of stopping the bill.
Democratic state Rep. Jimmie Lee of Elizabethtown, a former
automobile dealer, said he crafted the Kentucky legislation in
response to efforts by GM and Chrysler Group LLC to close
dealerships.
A GM spokesman says the legislation provides an unprecedented
10-year right of first refusal that would allow previous franchise
holders to block the opening of new dealerships.
The other states are Georgia, Missouri, Ohio and North Carolina.

(Copyright 2010 by The Associated Press. All Rights Reserved.)


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