VADA and GM come to terms on facilities upgrade legislation

VADA and GM come to terms on facilities upgrade legislation

VADA and GM have reached an agreement regarding franchise relations legislation the association had successfully sponsored in the 2011 Virginia General Assembly which provided dealers with relief on OEM facility upgrade requirements. GM had been concerned the measure would negatively impact its EBE program, even though VADA had insisted that it did not. Just the same, GM notified its Virginia dealers it was rescinding its EBE program in the Commonwealth, effective March 31, 2011, because of the new law.

This week, sponsors of the legislation introduced an amendment to specifically set forth that the measure did not apply to GMs EBE program. In return, GM has sent a follow up to its Virginia dealers stating the EBE program will continue. The governor is expected to sign the amended legislation in early April

GM wanted a belt to go with its suspenders, and we provided one, said dealer attorney Michael Charapp, who worked with VADA on crafting the law The legislation never applied to its EBE program and this amendment makes that clear, he said.