Via the invaluable Quorum Report comes word that Greg Abbott has filed with the bankruptcy court to prevent GM for doing what GM desperately needs to do: close dealerships. To quote from Quorum Report:
“What GM is seeking to do is to gut Texas law,” Abbott said, adding that states have the right to regulate on behalf of auto dealers in order to prevent unfair trade practices. That right has been upheld by the U.S. Supreme Court as long ago as 1978, he said. “It is GM being the only auto manufacturer in the country who is seeking to evade the Texas structure and the Texas legal system that our legislators passed,” he said. Abbott said that Chrysler, which is also reorganizing under bankruptcy protection, has not sought to rework dealer agreements.
We’ll see what the judge thinks about his petition. But in fairness, after all the hooferall about Texas law, it is fair to point out that this bit of protectionism was passed at the behest of dealers — read, big campaign donors — and is less a states rights issue than a how-the-lobby-controls-the-Texas-Legislature issue. The judge, it is fair to assume, is not wearing blinders.
