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Illinois Auto Dealers Fight GM & Chrysler Bankruptcy Cutbacks

GM has been tallying profits and showing signs of new growth in the beginning of 2010. In addition, its cars have won several awards and it may well profit from the Toyota recalls of the last two months. However, following the auto company’s summer bankruptcy, in which the carmaker closed 12 auto factories and cut 20,000 jobs, GM is still facing issues with the hundreds of auto dealers that the company let go in 2009.

In Illinois alone, 107 car dealers are appealing the car company’s decision to close their outfits. Only one other state in the county has such high numbers of appeals filed.

The appeal proceedings will be handled by the American Arbitration Association. At this time, according to the Illinois Automobile Dealers Association, individual dealers are not yet discussing the appeals with the media. Many of the dealers remained opened, but have suffered without new car models coming in from GM and Chrysler. Other dealers closed their doors when dealer cutbacks were announced this summer.

The date of the car dealership appeals hearings have not yet been set.

General Motors filed for bankruptcy on June 1, 2009, and received roughly $50 billion in government stimulus funds to help them recover. The car company has staged a comeback since then, but is still facing a number of administrative woes.

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