California Chevrolet dealer unhappy with arbitration, sues for franchise

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]