States, GM reach deal

General Motors Corp. has agreed to follow state laws governing the automaker's relations with its dealers — but only those who survived last month's orders to close, the Nebraska Attorney General's Office said Thursday.

The agreement that Nebraska and 29 other states reached with GM provides no relief for about 20 Nebraska dealers who lost their franchises for one or more car and truck lines.

The automaker's bankrutpcy filing last month overrode laws in Nebraska and other states that govern manufacturers' arrangments with dealers, including not ending their franchises without good cause. Dealers losing their franchises say GM sent letters to them with take-it-or-leave-it offers that will put them out of the new-car business by October 2010.

Attorney General Jon Bruning said he and other attorneys general are trying to find out more about the shut-down decision. "One of the things we have asked for is some sort of transparency on how they made those decisions," Bruning said.

GM agreed to comply with state "lemon" laws, follow privacy laws in its handling of customers' personal information as dealerships are realigned, and honor liability claims on cars sold before the bankruptcy filing.

Bruning said the smoothness and speed with which Chrysler shut down dealers affected GM's decision on handling its dealers. "GM went a step further than Chrysler — they tried to eviscerate state law protections not only for dealers but for consumers," Bruning said. "General Motors lawyers went a bit further."