• June 1, 2009

The chairman of the National Automobile Dealers Association (NADA), John McEleney, says GM's bankruptcy should be a short one, and reiterated NADA's position versus GM's decision to cut a third of its dealerships.

Said McEleney, in a statement: "Since NADA represents all dealers -- both domestic and international -- our concern is to minimize disruption to the entire auto industry. The bankruptcy court also should take special care not to trample on recognized rights under state franchise laws. By cutting its dealers, GM is cutting its own customer base."

He lauds GM for at least giving dealers a heads-up. "Unlike Chrysler, GM at least has indicated it will allow a wind-down period for the dealers who are not part of the new company."

He adds that GM dealers will continue to honor all warranties and will work with all parties concerned to make sure that their customers are taken care of.--Karl Greenberg