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.
Several closed dealerships in the central TX area were the only dealerships for miles. They were very profitable and created jobs in their communities. That is now history.
One of my neighbors worked for one of the larger Chrysler dealers here. The owner has been a solid Republican and donated to (R)s only. He has a list of a number of closed dealerships that also donated to (R)s and a list of nonprofitable - still open - that donated to (d)s.
......which explains why dealerships are being closed when they don’t need to be closed.
My guess is that Obama and his henchmen will give those dealerships to blacks and whatever other rat minorities they choose to reward for them to re-open and get fed taxpayer $.
It’s called reparations, although blacks call it social justice now.
Incredible bumper sticker ping for later
Shouldnt have Hoyer addressed this letter directly to the “car czar” Steven Rattner?????..........
........oh, who by the way answers only to B.Hussien Obama...
“why close the dealership?”
To dictate who sells X for N % profit and to whom?
“So what if I alienate 50% of my potential customers, I’ll still get the other 50%,” I’m sure he thought. Wait until he realizes his crowd is looking for a Honda or a Prius and the alienated half was his actual customer base.
Exactly. I need a truck... won’t be buying from him.
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