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Dems express 'growing concern' [re: Obama auto dealer closures]
Politico ^ | June 6, 2009 | By AMIE PARNES

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.


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; US: Michigan
KEYWORDS: 111th; agenda; bho44; chrysler; cronyism; dealerships; gm; killchryslerlist; michigan; obama
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To: Dallas59
"How do you keep that potted plant??? My neighbors ate mine...

(pssst....It's plastic. Don't tell, ok?)

61 posted on 06/06/2009 4:31:56 PM PDT by redhead (We don't care HOW they do it in Chicago!)
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To: redhead

Can anyone say “Set Up?” These dealers, mostly Republican, have been scared to death that the government is going to ruin them. Now they might be saved by some Democrats. I don’t seen any Republican names on that letter.


62 posted on 06/06/2009 4:34:56 PM PDT by Kanzan
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To: Kanzan
"Can anyone say “Set Up?” These dealers, mostly Republican, have been scared to death that the government is going to ruin them. Now they might be saved by some Democrats. I don’t seen any Republican names on that letter."

Hmmm...you might just be onto something here.

63 posted on 06/06/2009 4:42:11 PM PDT by redhead (We don't care HOW they do it in Chicago!)
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To: John123
Would you buy a used car from that man, Obama?

B Hussein may not be car salesman of the year but he certainly is firearms and ammo salesman of the year.


64 posted on 06/06/2009 5:24:43 PM PDT by AlaskaErik (I served and protected my country for 31 years. Democrats spent that time trying to destroy it.)
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To: Jim Robinson
["Dear President Obama"]

This is obviously a mistake. It should be:

"Dear Liege Lord Emperor Obama the Most Kind and Magnificent"

65 posted on 06/06/2009 5:25:48 PM PDT by Mad_Tom_Rackham (What did Obama's Teleprompter know, and when did it know it...)
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To: upchuck

A possible reason to close existing dealerships which may currently be profitable is the following. If you are going to change the terms of the relationship between the auto manufacturer and the dealer to where the dealer will make much less profit per vehicle, then the manufacturer would realize that they will need fewer, but larger dealers.


66 posted on 06/06/2009 5:29:13 PM PDT by Sam Clements
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To: Tax Government

Politics.....democrats making decisions that cost people jobs and gives ammo to the enemy is bad for them.

Plus, I think they have seen the numbers of dealers getting the axe who donated to the repubs.


67 posted on 06/06/2009 5:36:05 PM PDT by misterrob (A society that burdens future generations with debt can not be considered moral or just)
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To: maggief
Car dealers have a lot of fixed costs. If every GM dealer has only enough sales and margin to beak even, then it is better for the surviving dealers that say half of the dealers disappear so that the rest have more sales per dealership: more cars, less competition, better margins, therefore profit.
68 posted on 06/06/2009 5:39:42 PM PDT by expatpat
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To: Jim Robinson

My Gawd, who woke up Steny Hoyer.


69 posted on 06/06/2009 5:54:14 PM PDT by Venturer
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To: kabar

Would you buy a used car from that man, Obama?
____________________________________________

HELL

NO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


70 posted on 06/06/2009 6:04:53 PM PDT by RushIsMyTeddyBear (Obama. Clear and Pres__ent Danger.)
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To: maggief

How do you sell more of a product by closing dealers?
_____________________________________________

Exactly.


71 posted on 06/06/2009 6:06:33 PM PDT by RushIsMyTeddyBear (Obama. Clear and Pres__ent Danger.)
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To: AlaskaErik

There’s a gun store in our area, which has had commercials in heavy rotation on talk radio stations. And they were running ads saying “exercise your constitutional rights,etc.” which seems like hinting that someone wants to take those rights away. Never heard any such ads before Obama became president.


72 posted on 06/06/2009 6:07:47 PM PDT by Dilbert San Diego
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To: Atom Smasher
“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”

There are instances where the guy who complained got shut down. In Massachusetts Chrysler closed a large, 5 star dealer located at a major highway interchange in Salisbury MA, but left a newer, smaller dealer in Haverhill - in what appears to be a much less favorable location.

It turns out the dealer in Salisbury sued Chrysler when they offered a new franchise to the nearby dealer in Haverhill.

73 posted on 06/06/2009 6:46:46 PM PDT by freeandfreezing
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To: freeandfreezing

What’s it going to take to stop these people? Is it only about waiting til 2010? I’ve done all the emailing, calling, letter writing, and complaining I can think of...but no one is listening.

Scary!


74 posted on 06/06/2009 7:39:46 PM PDT by Atom Smasher
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To: upchuck

Closing the successful dealerships of Republicans would allow Obama to give those dealerships to minorities, you know, blacks and brown folk who have been Obama supporters.

Pay to play!


75 posted on 06/06/2009 8:08:19 PM PDT by SatinDoll (NO Foreign Nationals as our President!!)
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To: Atom Smasher

OFFICE OF HEAD RATLING
U.S. HOUSE OF MISREPRESENTATIVES
CRAPITAL HILL, WASHINGTON DC

BARAT OBAMA
1600 RAT TOWN PIKE
WASHINGTON, DC

Lord Rat,

We regret to inform you that in order to save our own miserable A$$E$ from the fallout caused by you and your amatuerish handling of the Chrysler, GM debacle, your obedient ratlings are forced to utter the following.

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

Heat on congresses rear FLAMETHROWER on Bambi’s crotch......This is high drama and high comedy wrapped together...........THIS FOOL IS THE KING AND THE COURT JESTER IN ONE BODY!!


76 posted on 06/06/2009 8:44:08 PM PDT by outhousepatrol
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Shocker: Dems Tell Obama To Let the Market Decide Dealership Closures
Patriot Room | June 6, 2009 | Bill Dupray
Posted on 06/06/2009 2:10:04 PM PDT by Bill Dupray
http://www.freerepublic.com/focus/news/2266346/posts


77 posted on 06/06/2009 9:35:39 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/__Since Jan 3, 2004__Profile updated Monday, January 12, 2009)
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To: Jim Robinson
Jim,

Just Dims worried about the 2010 vote..and knowing they won't et it if their constituents are smart.

78 posted on 06/06/2009 9:39:36 PM PDT by IrishPennant (RLT = Radical Left Terrorism...feel it????)
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To: Jim Robinson

Bookmark for later...


79 posted on 06/06/2009 9:55:01 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: sheikdetailfeather

Holler and Classic both Holler owned. 70 years...


80 posted on 06/07/2009 5:23:19 AM PDT by poobear (Poobear - My Yorkie Poodle Terrier - Good Boy!!)
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