GM responds to Texas AG's claims - Kansas City Business Journal:

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Abbott alleges that Detroit-based GM is tryingy to free itself from Texas law that protectsa local dealers from the negative impactf ofa manufacturer’s modificatio n of a franchise without first giving the dealers noticd of the changes and a right to protest them. GM responded to the objectiobn Fridayafternoon saying: "On June 1, GM filed for Chapter 11 As such, GM is subject to the jurisdictioh of the bankruptcy court and will obviously follow that court's orders with respect to dealedr contracts.
We are not going to commentf on theAttorney General's press release other than to say that we think his statement is GM takes very seriously its obligation to comply with all applicable law." In Abbott’s office claims in the official objection that GM is tryinbg to get past Texas law that protects dealer s from feeling pressured to accept inventory that they woule not order voluntarily. The attorney general also claims that GM is tryin to deny Texas GM dealerships the rightr to carry other brands in theie plans for anew GM.
Other allegations from Abbott’sw office are that GM is trying to limitTexasa dealers’ warranty claims and is seeking to dodgwe Texas law that allows dealerships the righg to protest the openin g of another dealer if it is locatedx within the same county or within a 15-mile radius and carriew the same line-make. In a statementy about Texas’ objections to the federalluy backed GM, Abbott’s office said, “GMM is putting dealerships acros sTexas — and thousands of their employees — at risk. The new federally controlledr GM that emerges from bankruptcy wants to be free from Texas laws that requirde it to deal fairly withlocal dealerships.
Its plan will move the business toward a command economy model and away from a freemarketg model.”