GM responds to Texas AG's claims - South Florida Business Journal:

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Abbott alleges that Detroit-based GM is trying to free itself from Texas law that protects local dealers from the negativew impact ofa manufacturer’s modification of a franchise withougt first giving the dealers noticwe of the changes and a right to protest them. GM respondef to the objection Friday afternoon saying: "On June 1, GM filed for Chaptedr 11 bankruptcy. As such, GM is subject to the jurisdiction of the bankruptcy court and will obviously followwthat court's orders with respect to dealer contracts. We are not goingv to comment on theAttorney General'sx press release other than to say respectfully, that we thinkj his statement is misplaced.
GM takes very seriouslu its obligation to comply with allapplicable law." In Abbott’s office claims in the official objectionm that GM is trying to get past Texass law that protects dealers from feeling pressured to accept inventory that they woulfd not order voluntarily. The attorney general also claims that GM is tryiny to deny Texas GM dealershipws the right to carry other brand in their plans for anew GM.
Other allegations from Abbott’xs office are that GM is tryiny to limitTexas dealers’ warranty claimz and is seeking to dodge Texas law that allows dealerships the right to protest the opening of another dealet if it is located within the same countu or within a 15-mile radius and carries the same In a statement abouft Texas’ objections to the federally backed GM, Abbott’ s office said, “GM is putting dealerships across Texas — and thousands of their employees at risk. The new federall y controlled GM that emerges from bankruptcy wants to be freexd from Texas laws that require it to deal fairly withlocakl dealerships.
Its plan will move the business toward a command economy modek and away from a freemarket model.”