Not so fast
Arkansas Business reports that the head of the Arkansas Automobile Dealers Association says that under Arkansas law, General Motors could not revoke franchise agreements before they expire. One GM dealership in Fordyce received such a revocation earlier today. The owner of the dealership in Fordyce says he'll keep selling used cars and doing repairs no matter what happens. Click here for the full story.



Comments
Aha! but that was before Obama took over GM and Chrysler. Obama doesn't have to worry about state laws, he can close whatever dealerships he wishes. If you don't like what he does, he will threaten to take back your stimulus money and/or demonize you. I'm kind of surprised that he hasn't declared that all GM and Chrysler dealer personnel must join the UAW yet.
Posted by: Severus
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May 15, 2009 04:34 PM
Anyone heard which dealers are getting the ax?
I have heard both in Fordyce are along with Bob Carver in Mena who also lost his Chrysler contract yesterday.
Posted by: blackberry
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May 15, 2009 04:40 PM
Geeze, Severus....get a life will ya, or if you can't do that at least get a brain that works.
Posted by: Charles Eddie Smith
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May 15, 2009 05:15 PM
I thought what GM planned to do was let the agreements expire (in 2010), then not re-new them. That's not revocation "before they expire."
I thought Chrysler was going to use certain longstanding powers available in bankruptcy to terminate unexpired franchise agreements.
I don't think either power comes from the Obama administration, although perhaps the incentive to exercise those powers does . . . .
Posted by: TAP
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May 15, 2009 05:58 PM
Aw TAP, you, dear friend, haven't been educated at Rush Radio Limbaugh University.
The first course is Mindfuck 101.
Next course is Becoming Ditto Head Forever.
Posted by: eLwood
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May 15, 2009 06:18 PM
Guilty as charged, brother eLwood; guilty as charged.
Posted by: TAP
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May 15, 2009 06:25 PM
>>Aha! but that was before Obama took over GM and Chrysler. Obama doesn't have to worry about state laws, he can close whatever dealerships he wishes.<<
Obama, shahama! It was ServiceUs' butt-buddy Bush who reached out to auto makers and gave them tax money in exchange for common stock and pledges to repay and hence made them wards of the state. Good Old uberconservative George W. Bush who SOCIALIZED major Banks.
Posted by: eLwood
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May 15, 2009 09:12 PM
Our car companies are near death for one big fat reason...incredibly over priced health care. Toyota didn't do this to GM & Chrysler, big doctors, big hospitals, big pharma, and big insurance did it. All those chickens finally came home to roost. And if the Big 4 aren't choked to death first, you'll be next!
My artist friend Ed, who has plenty of money and plenty of insurance just spent the last 30 days trying to get a growth taken off his thyroid. I'll spare the details, but the bottom line is every medical person involved screwed something up badly. He was on the operating table 3 times before they actually performed the surgery. Fortunately everything turned out fine, but now at the age of 70, he has an entirely new outlook on health care in America today and he's joined me in the line marked Scared Shitless!
So I know I might as well not bother if I wake up with a tumor in my neck the size of a Buick....if people with money and insurance can't get competent care....without money or insurance I'd probably be shoved in the door marked Experimental Lab and wind up having lye shot in my eyes by Revlon.
So when you have to drive 500 miles to buy a stripped down Chryrolet don't blame the unions, or lazy workers or poor designs or poor workmanship..blame it on the Big 4 leaches who are sucking America dry.
Posted by: Deathbyinches
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May 16, 2009 12:51 AM
Yeah, it may be illegal under Arkansas law, but federal bankruptcy law preempts Arkansas franchise law. So as soon as GM files, (it will, and this is why it will), it's bankruptcy estate can reject franchise agreements for any business reason.
See the treatment of executory contracts under the bankruptcy code
Posted by: Joseph Gwerk
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May 16, 2009 02:47 AM
Joseph Gwerk,
Facts or legal precedence and preempts won't bother Severus, Joseph.
My fraternity brother, who later became as U.S. District Attorney, laughed at the old quote by Robert A. Heinlein that ". . . straining to swallow a gnat and talking a camel at a single gulp . . ." were required courses at law school. Severus and his buddy CCRRR's have raised it to a new art form in the new CCRRR/Republican strategy "Attack anything that moves with 5% truth and 95% alluded inequities/imagined crimes to stir up the base, but focus on Pelosi and Reid. They both are polling much worse than Obama and Pelosi is a woman."
Of course Severus, Catfish Eater, ChasV, Boehner, Faux News, still haven't realized there isn't much of the base left to arouse.
Posted by: docholliday
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May 16, 2009 08:02 AM
Oops! ". . . taking a camel at a single gulp . . ." not talking. Damn unreliable digits.
Posted by: docholliday
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May 16, 2009 08:24 AM
Why does that car company think it can get people to buy its cars by using the Enron symbol in its commercials?
Posted by: YossarianMinderbinder
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May 16, 2009 10:05 AM
Yossarian,
Which car company? I haven't seen the commercials.
Posted by: docholliday
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May 16, 2009 08:11 PM
Yossarian,
Which car company? I haven't seen the commercials.
Posted by: docholliday
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May 16, 2009 08:31 PM
The Enron symbol is a backwards 3 for the "3" in Mazda3. If there were any merit in the vehicle expressed in the commercial, I missed it, wondering why a car company would use the symbol for a massive fraud as a selling tool. Advertising is an odd game.
Posted by: YossarianMinderbinder
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May 17, 2009 03:49 AM
Thank you, Yossarian. I'll look for it.
Posted by: docholliday
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May 17, 2009 09:20 PM