GM Launches Ad Campaign in Opposition to Special Dealer Rights in Kentucky

HB 217 Endangers Taxpayers and Thousands of Auto Jobs

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Mar 19, 2010, 11:30 ET

DETROIT, March 19 /PRNewswire/ -- General Motors announced today that it will be taking out advertisements in several Kentucky newspapers on Sunday, March 21 to alert taxpayers and lawmakers about the negative impact that H.B. 217 will have on Kentucky's economy.

The $50,000 ad campaign will appear in the Louisville Courier-Journal, Lexington Herald-Leader, Ashland Daily Independent, Paducah Sun, Owensboro Messenger-Inquirer and Bowling Green Daily News.

This bill, which is currently moving through the Kentucky Legislature, would establish special rights for failed auto dealerships, including an unprecedented 10-year right of first refusal that would allow auto dealerships, no matter how poorly they have performed in the past, to block GM from opening new dealerships that could be more effective in improving customer service and improving sales.

Without the ability to realize savings across its dealership network and improve customer service, GM's ability to repay its taxpayer loans and continue providing good-paying jobs in Kentucky and across the United States could be at risk. In Kentucky, GM supports thousands of jobs through its Corvette assembly plant in Bowling Green and the relationships it has with 200 auto suppliers in the state.

"GM provides a lot of horsepower to Kentucky's economy," said Greg Martin a spokesman for GM. "We want to continue to be a source of good-paying jobs and hope the Kentucky Legislature will reject the attempt of special interests to slow us down.

"As part of our restructuring, everyone inside the GM family had to make sacrifices to create a new, stronger company. While we understand the frustration that some dealers feel, there is a fair arbitration process established by federal law that allows dealers to have their grievances heard by an independent third party. H.B. 217 is an unnecessary bill that will drive up our costs and threaten auto jobs and future business investment in Kentucky.

"We respectfully urge the Kentucky Legislature to stand up for auto manufacturing, which is a vital part of the state's economy, and oppose this misguided legislation."

SOURCE General Motors