Posted on 06/06/2009 3:03:58 PM PDT by Jim Robinson
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.
Not to worry.
Zero went to Law School....in the Ivy League.
Ergo he knows everything, about everything.
They should be all over this. They should be all over Obama for sticking his nose in private business which they are suppose to represent.
Has anyone done the math to see if the dealers were “profitable” at the expense of the auto maker?
Put another way: Did the dealers profit because GM and Chrysler took losses to keep the dealers in business?
You were right — coincidences when it comes to business/politics I do not believe.
Inklings of fractures amongst the Dems continue. The question is WHEN, not if, will the Dem dyke break?
That line jumped out at me, too. What TOTAL BS!! There has never been discussion of liquidation of GM and Chrysler, just Chapter 11 bankruptcy protection to get reorganized and restructure their debts.
That wind the Most Preposterous Statement of the Week award.
Leaving aside the potential political consequences, I still don’t understand, from a strict business standpoint, how closing a dealership helps GM or Chrysler.
There must be some twisted logic as to why closing a dealership helps them. Else, why close the dealership?
I get the distinct feeling that the affirmatice action figure’s goon squad don’t think they will be called on anything they do, so they have set to work to consolidate democrat power and weaken the nation they want to control for the next fifty years. Sadly, they are too stupid and power crazed to realize they are killing the thing they lust to rule over.
Yeah, Navy Patriot, right again, but I wish we were wrong about this stuff, occasionally.
The affirmative action figure, ‘BUCO’! I like it; he’s too damned cheap to deserve a “K”.
Exactly. Cry two tears in a bucket, Democommies.
How do you sell more of a product by closing dealers?
They know if people keep digging they’re going to find these closings are, in fact, politically motivated, as has been thought. If that word gets to the general public (not sure how it would because the MSM won’t bring it up)...then Americans will be outraged.
That picture is Al Gore’s wet dream of America
Must be what’s left of the GM investors..
They know if people keep digging they’re going to find these closings are, in fact, politically motivated, as has been thought. If that word gets to the general public....then Americans will be outraged.
####
Some of US will.
But MOST of Obama’s voters were motivated by the chance to get the “rich”/whitey/Republicans.
In their abject ignorance, they welcome Obama’s vindictive idiocy.
In every market where there is a dealership connected with former Penske Automotive executive Steve Landers, or his new automotive partnership with “Mac” McLarty (former Chief of Staff for President Clinton) and Robert L. Johnson (majority owner of the Charlotte Bobcats), the competitors are rejected.
In the Little Rock, Landers Chrysler Dodge Jeep is located far out of town in Benton, Arkansas. Nevertheless, the two Little Rock dealers, Cook and Crain were rejected.
In the Fayetteville, Arkansas area, Landers-McLarty Dodge Chrysler Jeep is located far out of town in Bentonville, Arkansas. Competitors Springdale Dodge Chrysler, Steve Smith County Jeep and Jones Brothers were all rejected.
In the Shreveport, Louisiana market, Lee’s Summit Dodge Chrysler Jeep (a Landers McLarty dealership) is located in Bossier City, Louisiana. Both competitive dealers, Claude de Beaux in Vivian, Louisiana and Greater Birmingham Dodge Chrysler in Shreveport were rejected.
In the Springfield, Missouri market, Tri-Lakes Motors (a Landers-McLarty dealership) is located in Branson, Missouri. Competitors Heritage Chrysler Jeep in Ozark, Missouri and Ramsay Motor Company in Harrison, Arkansas were rejected. A pattern seems to be emerging. Everywhere there is a Landers-McLarty dealership, Chrysler has rejected the competition.
In the Huntsville, Alabama market, Landers McLarty Dodge Chrysler Jeep, is located in Huntsville. Competitor Cloverleaf Chrysler Dodge Jeep was rejected.
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