Earlier this week, we told you GM had already lost one case against one of its dealers, after the arbitrator found the dealer to be worthy of a second chance. Today, Autonews reports that the American carmaker lost another case, the one against Thomas Motors in Moberly.
According to the source, citing the decision made by the arbitrator, Thomas Motors, despite failing to meet sales targets, has been largely profitable last year. With some investment, the arbitrator says, the dealership can continue to be viable.
In addition, the arbitrator based his decision on the fact that closing the dealership would affect the local community. Aside from selling GM cars, Thomas Motors repairs school buses, police and fire vehicles.
“There will be a loss of jobs, a loss of tax revenue and a loss of convenience to the people of Moberly and of Randolph County," the arbitrator said.
GM still has hundreds more arbitration hearings scheduled by July 14, the deadline set by regulators. In the beginning of the year, 168 out of the 2,000 dealers rejected by American manufacturer GM had filed for arbitration. GM sent letters to 1,300 dealers notifying them of the criteria used to target elimination of all their GM franchises by October, as well as 700 letters to partial wind-down stores.
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