Chevy Dealer Wins in First Disclosed GM Arbitration Case
WASHINGTON - In one of the first arbitration decisions involving General Motors Co., a Michigan Chevrolet dealer won his bid for reinstatement and has been told he will be receiving a letter of intent from the manufacturer, reported Automotive News. The arbitrator ruled that Lou LaRiche Chevrolet, of Plymouth, Mich., has the skill and financial resources to be a successful dealership. “While the undersigned arbitrator gives credence to GM's overall business plan and in fact acknowledges the urgency of many of its actions, the characteristics of this specific dealership are convincing that it has the financial wherewithal and will to succeed and to make a positive contribution to the overall GM dealer network and the public,” the arbitrator's May 14 decision said. Former GM CEO Fritz Henderson had testified at the arbitration hearing last month that overall dealer cuts are essential to the company's profitability, the dealer's attorney, Christopher DeVito of Cleveland, said in an interview. Henderson made no comment that applied specifically to Lou LaRiche Chevrolet's situation, the lawyer said. “Fritz Henderson's testimony was ineffective,” DeVito said. “It didn't carry the day.” Henderson was GM's first witness at the April 27-30 hearing in Southfield, Mich., the lawyer said. “After a year of getting kicked in the head every single day, this is such a relief,” said Lou LaRiche executive manager Scott LaRiche. “But right from the beginning, we've always hoped that somewhere, someone was going to do the right thing.” GM declined to comment today. “We respect the confidentiality of our relationships with each of the dealers who are affected,” GM spokeswoman Ryndee Carney said. Although the LaRiche decision is the first publicly known arbitration judgment involving GM, Carney said it is not the first to be handed down since arbitrations began last month.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →