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Bill Would Give Oldsmobile Dealers Tax Break on Phase-Out Compensation From GM

July 17, 2002

Sen. Jeff Bingaman (D-N.M.) on July 12 introduced legislation (S. 2726) to treat vehicle dealer transitional assistance as an involuntary conversion in an effort to assist Oldsmobile dealers, whose product line

is being phased out by parent company General Motors Corp.

According to Daily Report for Executives, Bingaman's self-described "modest" bill is designed to aid the 2,801 Oldsmobile franchised dealers across the country as they reinvest phase-out compensation from GM into other dealership opportunities.

GM notified dealers of its decision to eliminate the Oldsmobile line in December

2000 and is in the process of compensating dealers to assist in the phase-out of that line at their dealerships, according to the bill.

Also, dealers will be required out of financial necessity to reinvest those payments into other dealership opportunities, according to Daily Report for Executives.

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