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When General Motors announced a couple of weeks ago that it had completed the arbitration process with all of its discontinued dealers, the automaker no doubt hoped that its painful retail shrinkage process was over. But sadly, it was not to be – Rally Auto Group of Palmdale, CA, is apparently not quite ready to call it quits.
The arbiter in Rally's case removed the dealer's Chevrolet franchise and awarded it to a Saturn dealer that was located nearby; but allowed Rally to keep its Cadillac, Buick and GMC dealerships. Rally claims that, under the law passed by congress last year that created the dealer arbitration process, the arbiter should not have split the franchises but rather kept the whole dealership together or ordered it closed in its entirety.

So far, Rally is the only GM dealer to sue in the wake of the arbitration process, though three Chrysler dealers have also reportedly sued.

[Source: Automotive News – Sub. Req'd]

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    • 1 Second Ago
      • 5 Years Ago
      Man, Chevy moves more cars than all other brands comined, it would seem to me like they should have taken Buick GMC and Cadillac and given it to Saturn, after all Saturn sales teams are well trained for higher end customers.
      • 5 Years Ago
      Chevy in the GM group is the bread and butter. To take that away from someone, and award it to someone else, I would be pissed too.

      I'm sure the owner of the dealership would have been more happy to keep Chevy, and toss one or two other brands the Saturn owners way.

      Good luck!
      • 5 Years Ago
      That Saturn dealer must have really big connections to stay in business and cherry pick a token Chevy Franchise.

      Makes me wonder who the arbiter was related to?

      • 5 Years Ago
        • 5 Years Ago
        "Rally claims that, ... , the arbiter should have ... ordered it closed in its entirety."

        We can do that!
      • 5 Years Ago
      Logically, this isn't, as it definitely would've made more sense to keep it all together. However, I wonder if there's an underlying reason for pulling their franchise like customer service (or lack thereof) ...
      • 5 Years Ago
      I wouldnt want to lose a Chevy dealer. Chevy has strength across the board w/trucks, compacts, sports cars, mid size sedans, large sedans, small/medium/large SUV's. Also, if gas goes up again those luxury vehicles in Buick and Cadillac might take a hit.
      • 5 Years Ago
      I got to admit , I agree with this dealer . If he is good enough in the eyes of GM for his other GM brands of gmc, buick and cadillac , why take away his chevy brand to give to a saturn dealer !

      plus if the law stats a dealer can not be split , keep it whole or close it all..I hope this does not back fire in his face and GM close all of his other dealer ships for gmc, buick and cadillac