Colorado Representatives Fight Back: GM and Chrysler Accused of Mistreating Dealers Page 2

By Jonathan McGrew

Jonathan McGrew

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Jonathan McGrew has had a steering wheel in his hands since before he could walk. It was inevitable that he would start racing, earning recognition... More

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984 views Jul 3, 2009

Bond Holders View of GM

Rep. Rice and Sen. Romer sponsored SB09-091 during the 2009 Session of the Colorado General Assembly to protect Colorado's 260 automobile dealers.  SB09-091 passed out of the General Assembly with the support of 93 percent of legislators.  Governor Bill Ritter supported this legislation from the beginning and signed it into law on April 2, 2009.  The bill became law on July 1, 2009.

When Chrysler and GM filed for bankruptcy, all state franchise protections for dealers and consumers were circumvented by federal law.

Colorado law has several protections for automobile dealers that the manufacturers do not have to honor due to bankruptcy.  They are:  Payment of rent on the dealer's building for one (1) year; Payment of the goodwill value of the dealership; and an obligation to buy back inventory and parts of a terminated dealer.

Sales and service of new and used motor vehicles in Colorado account for 20 percent of the total sales tax revenue for the state.

ABOUT CADA

Headquartered in Denver, the Colorado Automobile Dealers Association (CADA) was founded in 1933 and incorporated in 1938.  Today, the association represents 260 new car and truck dealers throughout the state and advocates for issues important to the industry including the state’s goal of reducing vehicle emissions. CADA also provides intellectual leadership on industry issues before the United States Congress, the Colorado General Assembly, various federal and state regulatory agencies, city councils, the news media, and the public. For more information, please visit: www.coloradodealers.org.

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 Z. James Czupor  I  The InterPro Group  Principal  303-759-8989 (office)  303-503-6677 (mobile)  www.interprogroup.com 

Letters from Rice to GM and Chrysler

Letters from Romer to GM and Chrysler