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GM Fights States That Try To Help Auto Dealers

General Motors is fighting legislation in at least five states that gives automobile dealers leverage over carmakers in the scramble for franchises.

FRANKFORT, Ky. (AP) -- General Motors is fighting legislation in at least five states that gives automobile dealers leverage over carmakers in the scramble for franchises.

One such measure nearing final passage in Kentucky would give auto dealers who lost franchises first crack at new ones.

GM announced Friday that it is launching an advertising campaign this weekend in Kentucky in hopes of stopping the bill.

Democratic state Rep. Jimmie Lee of Elizabethtown, a former automobile dealer, said he crafted the Kentucky legislation in response to efforts by GM and Chrysler Group LLC to close dealerships.

A GM spokesman says the legislation provides an unprecedented 10-year right of first refusal that would allow previous franchise holders to block the opening of new dealerships.

The other states are Georgia, Missouri, Ohio and North Carolina.

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