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Colorado Legislature Considering Bill to Protect Terminated Dealers

March 1, 2010

DENVER – A bill is making its way through the Colorado state legislature that aims to protect dealerships terminated by GM and Chrysler, the Associated Press reported on Monday.

The bill, which passed the House, is up for its first vote in the Senate in the Business, Labor & Technology Committee on Monday. It would require manufacturers to reimburse dealers for the money they spent upgrading their dealership over the last five years.

The bill would also provide dealers with a first right of refusal if the manufacturers later awards a franchise in the terminated dealer’s area.

According to the AP report, GM is spending $60,000 on advertising opposing the bill, as it has said that the legislation threatens its ability to return to profitability.

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