General Motors and Chrysler Car Dealerships Might Head to Arbitration

As readers may know, General Motors and Chrysler are planning to close nearly 2,000 dealerships as part of their reorganization plan. The New York Times reports on a House bill that would provide for binding arbitration as a way for car dealers to appeal the termination of their franchise agreements.

The House has approved a compromise plan to give General Motors and Chrysler dealers an appeals process to keep their showrooms open.

GM and Chrysler have attempted to shed dealerships as part of their government-led bankruptcies. But the moves have riled up members of Congress, who have received numerous complaints from dealers being shut down.

A $1.1 trillion spending bill approved Thursday includes provisions to give 789 Chrysler dealers closed in June and more than 1,350 GM dealers expected to be shut down next year an opportunity to challenge the automakers’ decisions.

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