House OKs arbitration for auto dealers

WASHINGTON, Dec. 10 (UPI) -- More than 2,000 General Motors Co. and Chrysler Group dealerships could fight forced closings in arbitration under a bill passed Thursday by the U.S. House.

Binding arbitration for the dealerships and automakers would come as part of a $447 billion spending bill, approved 221-202, The Detroit News reported.

The bill now moves to the Senate, which is to consider it Sunday.

House Majority Leader Steny Hoyer, D-Md., and Sen. Dick Durbin, D-Ill., worked out the process allowing dealerships to appeal closings.

"This is a fair opportunity to resolve the disputes and to have a fair hearing, which is all these dealers have asked for," Durbin said.

He said he expected the Senate to approve the provisions and predicted automakers would not oppose them.

Passage of the bill comes a week after General Motors and Chrysler proposed a much more limited appeals process that would focus only on whether the automakers adhered to their own criteria in deciding dealership closings.

The News said Chrysler closed 789 dealerships in June and GM plans to close at least 1,350 by October.

The bill would require an arbitrator to consider the economic interests of a closed dealership, the company and the public; the dealership's profitability since 2006 and "current economic viability;" and the automaker's business plan.

Dealers would be given 45 days to seek arbitration and the arbiter would get six months to make a decision.

GM would not say if it planned to fight the proposal but pledged to work with lawmakers and dealers "on a resolution that balances the interests of GM and its dealers," GM spokesman Greg Martin said.

In a statement, Chrysler said, "We agree with Congress that arbitration is the best way to resolve the issues involving discontinued dealers."