As North Carolina's auto dealers continue to navigate a new world of government bailouts and corporate bankruptcies, the N.C. Automobile Dealers Association is lobbying for state and federal efforts to protect dealer rights. At the heart of the association's effort are laws that would normally protect dealers against the sudden closure of a manufacturer. However, many laws were invalidated by the corporate bankruptcy filings of General Motors and Chrysler. Dealers say the companie
s, particularly Chrysler, used the temporary break from the usual rules as an opportunity to clean house. And they are still seeking answers about how Chrysler determined which dealers would be shut down. City Motors in Greensboro was one of 14 N.C. dealers that lost its Chrysler dealership in June. The Charlotte area lost three. “Nobody knows to this day why they weren't picked up by the new company,” said Mike Cranford, general manager of City Motors. In South Carolina, David McKinney, former owner of Lancaster Dodge Chrysler Jeep, said he and other former S.C. Chrysler dealers are pressing the issue because it's one of basic fairness. Everyone else involved in GM's and Chrysler's bankruptcy cases – from union workers to bond holders to bankruptcy lawyers – got paid, while franchises like his received nothing, he said. “The way the dealers are looking at it, it's like eminent domain without compensation,” he said. McKinney changed his company's name to Lancaster DCJ and still maintains a service shop. But losing the tie to Chrysler was “like a knockout punch,” he says.There is no public list of General Motors' dealerships that are closing, but Robert Glaser, president of the N.C. Automobile Dealers Association, said he guesses the state will lose about 35 of its 200 GM franchises.
s, particularly Chrysler, used the temporary break from the usual rules as an opportunity to clean house. And they are still seeking answers about how Chrysler determined which dealers would be shut down. City Motors in Greensboro was one of 14 N.C. dealers that lost its Chrysler dealership in June. The Charlotte area lost three. “Nobody knows to this day why they weren't picked up by the new company,” said Mike Cranford, general manager of City Motors. In South Carolina, David McKinney, former owner of Lancaster Dodge Chrysler Jeep, said he and other former S.C. Chrysler dealers are pressing the issue because it's one of basic fairness. Everyone else involved in GM's and Chrysler's bankruptcy cases – from union workers to bond holders to bankruptcy lawyers – got paid, while franchises like his received nothing, he said. “The way the dealers are looking at it, it's like eminent domain without compensation,” he said. McKinney changed his company's name to Lancaster DCJ and still maintains a service shop. But losing the tie to Chrysler was “like a knockout punch,” he says.There is no public list of General Motors' dealerships that are closing, but Robert Glaser, president of the N.C. Automobile Dealers Association, said he guesses the state will lose about 35 of its 200 GM franchises.For further details visit as : http://www.charlotteobserver.com/597/story/843916.html
