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View Full Version : Dems express 'growing concern' over dealerships closing




disorderlyvision
06-08-2009, 08:43 AM
Apparently some of the cloings are hitting a little to close to home, so now all the sudden they care

http://www.politico.com/politico44/perm/0609/pushback_on_chrysler_4a29bba0-af21-4dd4-9d76-c59c5aaf8f5d.html

House Majority Leader Steny H. Hoyer and Reps. Chris Van Hollen and Daniel Maffei have circulated this letter today ...

... to Obama expressing “growing concern” with the closures of GM and Chrysler dealerships across the country. The lawmakers say they’re asking for a “compelling justification as to how closing healthy dealerships will make the automakers more financially sound. The lawmakers are asking for lawmakers to sign this letter by 5p.m. today.

Full letter below:

Dear President Obama:

We are writing to express our concerns about General Motors’ and Chrysler’s decision to close profitable automobile dealerships across the country, and urge you to ask GM and Chrysler to delay final action on proposed closures pending further review of the decision to consolidate dealerships and the process by which Chrysler and GM selected the dealerships to close.

Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. Furthermore, we believe car dealers will be key players in any effort to revive the American auto industry.

We believe the dealerships are one of the auto industry’s key sources of strength and the manufacturers should continue to honor their agreements and contracts. The dealerships, and their more than 1 million employees, form personal relationships with customers that often contribute to brand loyalty and will be key to General Motors’ and Chrysler’s recovery following this economic downturn. While we understand the desire to reduce the number of unprofitable dealerships, no one has yet sufficiently explained the need to close profitable dealerships.

We recognize that efforts by your Auto Task Force prevented the total liquidation of General Motors and Chrysler, as well as their dealership networks. We commend your efforts to help these businesses survive these challenging economic times.

However, we are concerned that manufacturers are closing profitable dealerships to circumvent current contracts which could require expensive buy-outs under normal conditions. We are also concerned about allegations that dealers that have previously stood up for their rights against the manufacturers are being targeted by these closures. We believe that the forced closures of profitable dealerships needs to be scrutinized by the Task Force to prevent additional future financial loses to General Motors and Chrysler and job loses across the United States

We may consider legislative proposals to ensure that dealers and their employees are treated fairly, and we look forward to your timely response.

Agent CSL
06-08-2009, 09:02 AM
It was never about profitability as much as silencing opponents, it seems. I guess we wait and see how this grand opera plays out.

rp4prez
06-08-2009, 09:04 AM
Oh God here we go. The politicization of GM is going to be part of the destruction of America. It's just now going down the path of Amtrak. Just like Amtrak the politicians want to have it stop in their district so that means a stop in every district so they can say, "see what I did for the people in my district! We have a stop on Amtrak!" What they fail to say is how crappy Amtrak is as a result. Now we are going to have dealers all over the place that no one goes to and loses money on every car just like GM already was doing. Also, when no cars are selling the government is going to pretty much force Ford out of business because the government will change the rules and provide many incentives if you buy a government car that Ford can not offer.

All of this just infuriates me to no end! :mad: