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Updated: 8:44 PM Jun 15, 2009
Neb Attorney General Plans To Fire Back At GM
Bruning urges other state AG's to get on board Nebraska Attorney General Jon Bruning is accusing General Motors of trying to circumvent state consumer protection laws. Posted: 8:44 PM Jun 15, 2009Reporter: The Associated Press Email Address: sixonline@wowt.com |
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Nebraska Attorney General Jon Bruning is accusing General Motors of trying to circumvent state consumer protection laws.
In a letter Monday to all other states' attorneys generals, Bruning says GM is claiming states' laws protecting consumers and dealerships can be ignored.
Bruning's letter comes as GM plans to close some 1,300 dealerships nationwide as part of it's plan to emerge from bankruptcy as a new company.
Bruning says GM is insisting current dealers sign new dealership agreements in order to be part of the new operation. Bruning says those agreements force current dealers to waive their protection rights under state law.
If the GM dealers refuse to sign the new agreement, Bruning said, they could be forced out of their franchises. Bruning also objects to provisions in the new agreement to keep the terms of the agreement confidential and to give the bankruptcy court exclusive jurisdiction over the agreements.
"What, GM is trying to do in Nebraska and other states is unconscionable," Bruning said in a late Monday afternoon release. "That is why I'm leading an effort involving other state attorneys general."
Bruning says in the letter that he will file an objection with the bankruptcy court this week and urged other states' attorneys general to do the same.
Bruning said rural states like Nebraska are being hard-hit by GM's proposed dealership closings.
"My goal is to protect people in rural areas so they don't have to drive hundreds of miles to get their car serviced," Bruning said.
Bruning says there are 72 franchised GM auto dealers in the state, according to the Nebraska Motor Vehicle Industry Licensing Board.









