In Michigan
6:14 pm
Fri June 5, 2009

La. AG sees violation in GM dealer policy

Baton Rouge, LA – Baton Rouge, LA (AP) - Louisiana Attorney General Buddy Caldwell says he's found violations in the way General Motors Corp. is treating its dealerships. Caldwell said Friday the bankrupt automaker has sent letters to dealers imposing new restrictions that appear to violate Louisiana regulations.

Caldwell's office will take part in a teleconference with other state attorneys general on Monday, to develop a strategy of making their case before the New York bankruptcy court that's handling the GM case.

Wade Shows, a lawyer representing individual dealerships in Louisiana, said the state has 65 GM dealers. He said all of them received one of two letters from the automaker, saying they will be either shut down or face new rules on sales figures and other matters.