DENVER — Colorado Attorney General John Suthers announced today that a bankruptcy court in New York has formally ratified General Motors’ agreement to honor Colorado and other states’ laws governing the relationship between automotive dealerships and New GM, a newly formed entity created by the United States Treasury,
“What we achieved in this bankruptcy case is very significant for Colorado and the dealerships affected by GM’s bankruptcy,” Suthers said. “This concession will allow the state of Colorado to maintain its regulatory authority over the agreements New GM has with its dealerships. This concession also will help maintain a level playing field between New GM and other auto manufacturers.”
Suthers, along with the attorneys general of Nebraska, Connecticut, Texas and Ohio, sat on the executive negotiation committee that negotiated this and other concessions during the bankruptcy proceedings.
Suthers also said that GM has reversed its decision to terminate its agreement with a La Junta GM dealership. Tri-County GM, a third-generation dealership, opened in 1927, will remain in business under an agreement with the New GM.
“The Attorney General’s involvement in this matter is really important to us and has had a major, positive impact on consumers, dealers and the state,” said Tim Jackson, president of the Colorado Automobile Dealers Association.
Colorado and other states also received concessions on a variety of other important topics, including:
- Honoring product liability claims arising after GM’s bankruptcy concerning vehicles sold prior to the bankruptcy;
- Honoring auto warranties and complying with state ‘lemon’ laws;
- Abiding by state privacy and No Call laws;
- Ensuring that facilities belonging to New GM comply with environmental laws, and obtaining greater financial support to ensure that facilities left in GM’s bankruptcy will be cleaned up; and,
- Complying with state tax laws.
U.S. Bankruptcy Judge Robert E. Gerber approved GM’s plans to sell itself to New GM in a July 5 order. GM filed for bankruptcy in early June.