General Motors says it has abandoned its legislative assault on state laws that restrict factory-owned dealerships.
But the company has no plans to let go the local public relations firms it began hiring two months ago to help attack the restrictions. The firms were hired in conjunction with a now-defunct GM plan to put up to 770 of its dealerships in 130 metropolitan markets. Chairman Jack Smith scotched the plan in October.
GM spokesman Terry Sullivan says GM has always worked with local lobbying firms.
'We are not trying to change the franchise laws,' Sullivan said. 'We just want to monitor the (anti-factory store) initiatives.' GM has no grand effort under way to weaken the franchise laws, he added.
Dealers in many various states are trying to strengthen franchise laws to block factory-owned stores.