McGraw files objection in GM bankruptcy

By Justin Anderson | Jun 25, 2009


CHARLESTON – West Virginia Attorney General Darrell McGraw has filed an objection in the ongoing bankruptcy proceedings for troubled automaker General Motors.

McGraw said the company's desire to end dealerships nationwide by October 2010 would hurt the state.

GM's request is currently pending in the United States Bankruptcy Court in New York.

"Termination of the GM dealerships in West Virginia will cause untold harm to dealers and consumers alike," McGraw said in a press release. "Dealers are GM's primary customers. It simply does not make sense to terminate your customers when you are trying to sell more cars."

McGraw's objection, filed Friday, asks the bankruptcy court to stop the sale of GM's assets without going through the Chapter 11 process.

McGraw said GM's plans to close dealerships would not only hurt those businesses, but also West Virginians who own GM-made vehicles because they could have to drive long distances to get their vehicles serviced.

McGraw added that GM's plans also violate a state law that prevents new car dealerships from being arbitrarily terminated.

The court is scheduled to consider GM's request and the objections on June 30. According to McGraw's press release, if the request is approved, dealerships may be unable to acquire new inventory beginning in December.

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