GM Reaffirms Commitment to Ohio; Launches Ad Campaign Opposing Dealers' Special Interest Bill

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May 21, 2010, 10:30 ET

DETROIT, May 21 /PRNewswire/ -- General Motors (GM) announced today that it would launch an ad campaign in Ohio to educate lawmakers about the negative impact that SB 204 could have on the company's turnaround and its ability to further invest and provide jobs in the state.

The initial ad, which will run in The Youngstown Vindicator on Sunday, May 23, touts the 1,200 new jobs GM will be adding at its Lordstown Complex to build the new Chevy Cruze and raises objections to several provisions in SB 204. This legislation is being pushed in Columbus by some auto dealers who are putting their own interests ahead of the economic well-being of Ohioans.

To build the new Chevy Cruze in Ohio, GM invested $350 million to upgrade its assembly plant in Lordstown. With the addition of the 1,200 new jobs, GM will employ 4,500 workers at the factory and more than 10,000 people statewide.

"A new, stronger GM means more jobs and a stronger Ohio economy. But, special interests are putting GM and Ohio's recent economic momentum at risk. SB 204 will create special new rights and unnecessary costs for auto dealers that defy good business practices and fairness. Taken together, the provisions in this bill will slam the brakes on GM's progress and future investment in Ohio to create new jobs. We urge the Legislature and Governor Strickland to oppose this bill," said Greg Martin, a GM spokesman.

SB 204, which is tentatively scheduled to be considered in the Ohio Senate next week, contains several onerous provisions that could hinder GM's turnaround and ability to provide jobs in Ohio.

The bill would allow auto dealers to sell foreign-made vehicles on the same dealer lots with GM cars and trucks.

It would prohibit GM from selling its auto parts to 6,000 businesses in Ohio, including Goodyear, Valvoline, Tuffy and local body repair shops.

There is a requirement that would force GM to pay the rent on dealership properties that have been closed because of fraudulent activities or the voluntary actions of dealers.

Lastly, the bill would cut in half the time that GM is allowed to perform quality control audits of dealerships to prevent fraud and ensure sound business practices.

SOURCE General Motors