General Motors has said it will sue dealers who refuse to move non-GM brands out of their showrooms.

"We're going to get involved in some litigation with dealers," said Bill Lovejoy, group vice president for vehicle sales, service and marketing, on July 25. "A dealer friend called me up, and I said, 'I still love you, but I

don't like your behavior. I'm going to fight you on this.' I'm playing schoolyard basketball. If I can kick your butt, I'm going to," Lovejoy said.

About 25 GM dealers would be affected, the company says. GM is seeking to enforce a franchise-agreement provision requiring that it approves any dual franchises. But the laws of some states will block GM, according to some dealer advocates.

Frank Ursomarso, president of Union Park Automotive Group in Wilmington, Del., said many state franchise laws would allow GM to enforce its franchise agreement only if it could prove that the non-GM brands could stand alone. "The franchise agreement cannot take precedence over the state law, regardless of what the franchise agreement says," Ursomarso said.

Lin Peacock, executive director for dealership relations for the National Automobile Dealers Association (NADA), said some dealers who set up dual showrooms without GM's approval may be vulnerable. "In places where the state franchise

law is silent on it, GM can give them fits," Peacock said.

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