Two Dealerships in South Dakota Sue GM to Stay Open ANN ARBOR, MI (Michigan Radio) - Two South Dakota car dealers are suing General Motors, claiming state law bars the auto maker from ending its franchise with them.

The two dealerships filed their federal complaints in Sioux Falls.

The lawsuit asks a judge to declare that General Motor's intent to close the dealerships in October of 2010 is against the law.

The complaint cites four reasons GM's action violates South Dakota law.
It says GM didn't notify the state, has not given a good reason
to close the franchises, failed to show that the needs of the communities will be served, and that the dealers have a right to a new contract if they fulfilled their obligations.

About 75-percent of the dealerships GM wants to close nationwide have accepted a settlement to close down. Company officials say they expect about 95-percent to accept the settlement by this Friday's deadline.
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