In June, Rose Chevrolet was one of about 1,350 GM dealerships to receive wind-down letters from the company, stating its contract would not be renewed at its October 2010 expiration date. But, as Larkin said, he was never told why the business were targeted for closure.
So he joined many other dealers, including the 800 Chrysler cut earlier this year, in the Committee to Restore Dealer Rights to petition Congress.
The committee has successfully added an arbitration provision to a congressional spending bill which calls for a neutral third party to determine whether dealerships ought to be reinstated. If a dealer wins the decision, GM or Chrysler would be required to send a letter of reinstatement within seven days, according to the legislation, which still needs President Obama’s signature.
While both GM and Chrysler were in favor of a “binding review process” over arbitration, the companies released statements that they would work with Congress to resolve the dealer closure issues.
Larkin is optimistic of his chances. The 42-employee operation has consistently been a top area seller for GM, ranking in the top 7 percent in the country for sales volume in May. It has also consistently scored high in customer service. It’s only detractor is that its facilities have not undergone a major renovation since it moved into its Ohio 4 location in 1984.
“We don’t want anything that we are not entitled to. That is not what we are asking. All we are asking is for a fair option because quite frankly that is the American way,” he said.
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