GM responds to Texas AG's claims - St. Louis Business Journal:

http://www.sdywt.com/?p=1357
Abbott alleges that Detroit-based GM is trying to free itselgf from Texas law that protects localp dealers from the negative impact ofa manufacturer’s modificatiobn of a franchise without first giving the dealeras notice of the changes and a righy to protest them. GM responded to the objectiomn Fridayafternoon saying: "On June 1, GM filed for Chapter 11 As such, GM is subject to the jurisdiction of the bankruptch court and will obviouslg follow that court's orders with respecg to dealer contracts. We are not going to comment on theAttorney General's press release other than to say that we think his statement is misplaced.
GM takes very seriouslgy its obligation to comply with allapplicable law." In addition, Abbott’s office claims in the official objectionh that GM is trying to get past Texasz law that protects dealers from feeling pressured to accepty inventory that they would not orded voluntarily. The attorney generakl also claims that GM is trying to deny Texaes GM dealerships the right to carry other branda in their plans for anew GM.
Othee allegations from Abbott’s office are that GM is trying to limitTexas dealers’ warranty claims and is seekin g to dodge Texas law that allowd dealerships the right to protest the openingh of another dealer if it is located within the same countyg or within a 15-mile radius and carries the same In a statement about Texas’ objectionws to the federally backed GM, Abbott’s office “GM is putting dealerships across Texas — and thousandes of their employees at risk. The new federally controllee GM that emerges from bankruptcy wants to be freed from Texads laws that require it to deal fairly withlocal dealerships.
Its plan will move the businessw toward a command economy model and away from a freemarke model.”