Durbin Statement on GM, Chrysler Decisions to Pursue Arbitration for Closed Dealerships

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) released the following statement today after GM and Chrysler announced they would proceed with the arbitration process Durbin and House Majority Leader Steny Hoyer (D-MD) developed to resolve the ongoing dispute between GM, Chrysler and dealerships that were closed during the companies’ restructuring.
“I’m pleased that both GM and Chrysler have agreed to support the binding arbitration process we developed last year. Closed dealerships across the country deserve a transparent review of their termination and GM and Chrysler have made the right decision in allowing that process to move forward.
In the end, the arbitration process will create a strong and robust distribution network as GM and Chrysler rebuild their operations and it will ensure that they one day return to their previous position as American manufacturing giants.”

The Durbin-Hoyer language expands the binding arbitration offer GM and Chrysler presented to dealers last year by requiring the arbitrator to balance the economic interests of the terminated dealership, the company and the general public when considering dealer reinstatement. It further preserves the right of dealers and companies to enter into agreements outside binding arbitration.