Abbott files objection to GM bankruptcy suit on behalf of Texans - KCBD NewsChannel 11 Lubbock

6/12/09

Abbott files objection to GM bankruptcy suit on behalf of Texans

By Ann Wyatt Little  - bio | email

LUBBOCK, TX (KCBD) - Congress isn't the only group that wants to make sure dealers are getting a fair shake from recent bankruptcy filings. Texas Attorney General Greg Abbott's office took action Friday demanding Texans deserve better from General Motor's bankruptcy suit.

On behalf of Texas GM dealers, employees, and buyers Abbott filed an objection in New York Federal Court Friday questioning GM's bankruptcy plan. He says the new GM contract offered to dealers would violate current Texas law by preventing Texas dealers from selling other brands, requiring dealers to order new GM cars they might not want to sell and alter law regarding dealer locations. The Texas Occupations Code currently provides the legal structure for dealerships.

"General Motors is insisting that current dealers sign a new dealership agreement if they want to be part of the new GM operation. The agreements, however, amounts to a take it or leave it ultimatum that force current dealers to waive state laws that were enacted to protect businesses from these very kinds of oppressive actions," said Abbott during a press conference in Austin.

Abbott says that GM is more focused on the short term turnaround than long-term stability.

"This plan moves the business toward a command economy model and away from a free market model. GM is seeking to place short term profit above long standing principles of the way we do business," adds Abbott. 

According to the Texas Automobile Association there are 415 franchised GM dealers in the state that employ almost 27,000 people.

©2009 KCBD NewsChannel 11. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

  • Local News on KCBD.comNewsMore>>

  • NKorea says Pence remarks were 'stupid,' willing to not meet

    NKorea says Pence remarks were 'stupid,' willing to not meet

    Wednesday, May 23 2018 8:51 PM EDT2018-05-24 00:51:44 GMT
    Wednesday, May 23 2018 10:32 PM EDT2018-05-24 02:32:50 GMT
    (AP Photo/Ahn Young-joon). Women protesters stage a rally for peace on the Korea peninsular near U.S. Embassy in Seoul, Wednesday, May 23, 2018. U.S. President Donald Trump labored with South Korea's Moon Jae-in Tuesday to keep the highly anticipated U...(AP Photo/Ahn Young-joon). Women protesters stage a rally for peace on the Korea peninsular near U.S. Embassy in Seoul, Wednesday, May 23, 2018. U.S. President Donald Trump labored with South Korea's Moon Jae-in Tuesday to keep the highly anticipated U...
    A top North Korean official says recent comments by U.S. Vice President Mike Pence were "stupid" and "ignorant" and again warns the country is willing to pull out of a planned summit with Trump.
    A top North Korean official says recent comments by U.S. Vice President Mike Pence were "stupid" and "ignorant" and again warns the country is willing to pull out of a planned summit with Trump.
  • Judge: President can't block critics on Twitter

    Judge: President can't block critics on Twitter

    Wednesday, May 23 2018 1:43 PM EDT2018-05-23 17:43:15 GMT
    Wednesday, May 23 2018 10:12 PM EDT2018-05-24 02:12:29 GMT
    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment. (Source: CNN)A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment. (Source: CNN)

    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment.

    A federal judge in New York says President Donald Trump cannot block his critics on Twitter without violating the First Amendment.

  • Syria state-run media reports US-led airstrike on army posts

    Syria state-run media reports US-led airstrike on army posts

    Wednesday, May 23 2018 9:11 PM EDT2018-05-24 01:11:43 GMT
    Wednesday, May 23 2018 10:32 PM EDT2018-05-24 02:32:10 GMT
    A Pentagon spokesman said there was "no information" to confirm or deny the reports. (Source: Raycom Media)A Pentagon spokesman said there was "no information" to confirm or deny the reports. (Source: Raycom Media)

    Syrian government-run media outlet is reporting that U.S.-led coalition airstrikes have struck Syrian army positions in eastern Syria near the front lines with the Islamic State group.

    Syrian government-run media outlet is reporting that U.S.-led coalition airstrikes have struck Syrian army positions in eastern Syria near the front lines with the Islamic State group.

Powered by Frankly