Posted on 07/19/2009 6:00:33 PM PDT by 2ndDivisionVet
It seems Obama's star power is fading rapidly. The Treasury Appropriations bill was passed 219-209 yesterday in the House. The roll call shows that the 219 is 215 dems and 4 pubs.
Tucked away in the bill is a provision that is a bit of extortion: No money can be used to obtain a financial ownership in any car manufacturer if that manufacturer deprives a car dealer of its economic right under its dealer agreement. Thump!
The Cleveland Plain Dealer summarizes:
"The measure would overturn bankruptcy court decisions to shutter 789 Chrysler dealers and more than 2,000 GM dealers. In Ohio, 47 Chrysler dealerships and 79 GM dealerships would be affected. The closings would eliminate more than 100,000 jobs across the nation and roughly 8,700 jobs in Ohio, the industry's trade association predicts."
More good stuff from the amendment's author, Rep. Steve LaTourette, (R-Ohio), “I don’t think Chrysler or GM has been able to demonstrate there is a savings associated with fewer dealers, since the dealers themselves bear the costs of operating their dealerships with little help from the manufacturers,” LaTourette said. “I think the closing of these dealerships was punitive and secretive, and it’s the most un-American thing for the government to help force you out of business and deprive you of the American dream.”
The White House issued a statement earlier this week (before the vote):
"The Administration strongly opposes the language in the bill that attempts to restore prior Chrysler and General Motors (GM) franchise agreements. The auto companies, like many in the country, face difficult economic and fiscal decisions. The Administration shares the Committee’s concern for dealers affected by Chrysler and GM bankruptcy agreements, and has taken steps to help support viable dealerships during this transition. For example, [blah, blah, blah] ...
It seems Obama is feeling pressure from all sides now.
Here's the language from the bill:
"Sec. 745. (a) None of the funds made available in this or any other Act may be used to obtain a financial or ownership interest (or right to acquire such an interest) in an automobile manufacturer that deprives an automobile dealer of its economic rights under a dealer agreement and does not assume (or assign to a successor in interest) each dealer agreement which is valid and in existence (and has not been lawfully terminated under applicable State law) before the date of the commencement of a case under title 11, United States Code, by such automobile manufacturer. (b) Any automobile manufacturer with respect to which the Federal Government has a financial or ownership interest (or right to acquire such an interest) shall, to the extent that a valid dealer agreement existing immediately before the date of the commencement of a case under title 11, United States Code, by such automobile manufacturer is not assumed by or assigned to another automobile manufacturer, require any new entity created in such case to enter into a new dealer agreement with the dealer whose agreement was not so assumed or assigned, and on the same terms as existed immediately before such date."
The dems did a good deed this week. Let's hope it starts a trend.
Voting against the bill itself -- which was a Treasury appropriations bill that wasted gazillions.
The dealer provision was an amendment to the bill which was sponsored by a Republican (Steve LaTourette -- R/OH) and doubtless had the support of virtually every Republican.
Consider it a diamond of an amendment, inside a turd of a bill.
NO. They were shut down. Lost their leases, auctioned off all their equipment, fired all their employees.
To start over would require tremendous capital influx, which (with no source of income) they do not have.
This might help GM dealerships as they haven't been shut down yet.
The closed Chrysler dealerships have an almost impossible uphill battle, to REOPEN.
Oh - so sorry to hear that.....GOOD GRIEF DICTATORSHIP AT WORK!
My mind is still foggy from all the beers I drank at the BBQ... but I understand you said something important but I can't understand it... can you clarify that for the slightly tipsy Freepers?
My Congressman:
More good stuff from the amendment’s author, Rep. Steve LaTourette, (R-Ohio), “I don’t think Chrysler or GM has been able to demonstrate there is a savings associated with fewer dealers, since the dealers themselves bear the costs of operating their dealerships with little help from the manufacturers,” LaTourette said. “I think the closing of these dealerships was punitive and secretive, and it’s the most un-American thing for the government to help force you out of business and deprive you of the American dream.”
Re-election is coming up and there is the scent of blood in the water. when there is a scent of blood in the water there are no friend, buddies, pals or robots. It’s ev er one for themselves. His term is for a maximum of eight years, their can extend for a lifetime.
This is nothing more than district butt covering for the House as they all face elections that will fall on the anniversy of the GM dealer closing deadline.
So will WHITE family dealerships be reinstated?
I heard one phone call on Rush and it was heart breaking. They were white and told to shut down.
Good analysis....may those in the districts whose dealerships closed down get family and friends to the polls in 2010 and vote their masters out!
That stands repeating. The bill passed, defeating Obama's stand of consicatory gov't and only 4 Republicans supported this bill?!?!?!. There had better be a really good reason why our gutless, spineless GOP leaders were craven enough to not be able to support this bill.
How about we simply have a ballot that not only lists Republican or Democratic candidate - but one that also shows 'who is currently in office (ie. incumbent)', so those who do not know who their representatives are, can at least vote to throw the bums out.
Apparantly the thugs in Chicago are unaware of that fact ~ after all, they invest directly in mob owned automobile tire stores around the Great Lakes and skip the car dealerships entirely.
From Congressman Steve LaTourette’s website:
“House approves LaTourette measure to help auto dealers, workers
The House of Representatives today approved a measure authored by U.S. Rep. Steven C. LaTourette (R-OH) that will force Chrysler and GM to restore dealer franchise agreements.
The congressman last week successfully amended the annual Financial Services spending bill, H.R. 3170, with a provision to help auto dealers and their employees. H.R. 3170 passed around 7 p.m. by a vote of 219-208.
LaTourette today went to the House Floor to criticize the president’s Auto Task Force for pushing auto companies to dump dealers, adding it’s prompting the closing of many family-owned businesses and the loss of about 200,000 workers. He said the average dealer employs about 60 workers.
“Under these policies the only jobs that will be stimulated will be clerks at the unemployment offices in the country,” LaTourette said.
LaTourette said 789 Chrysler dealers were given just 26 days to shut down through a rapid-fire bankruptcy process, and only two states saw more Chrysler/Dodge/Jeep dealer closings than the 47 closed in Ohio — Pennsylvania and Texas. The dealers were given virtually no help by Chrysler, including financial assistance to wind-down their dealerships. GM, meanwhile, plans to shutter more than 2,000 dealerships, and only Pennsylvania will see more GM closures than the 79 slated to close in Ohio. Those dealers will close over the coming year and many were compensated up to $1 million in exchange for closing and signing wind-down agreements.
“The auto companies have never been able to demonstrate that the dealers are a drag on their bottom line,” LaTourette said. “I think many agree that the trampling of state franchise laws is wrong, and many have no stomach for the way these dealers were treated.”
LaTourette said he was grateful for support from Majority Leader Steny Hoyer (D-MD) and Appropriations Chairman David Obey (D-WI) to keep the auto dealer language in the bill.”
It was part of the Financial Services bill — an amendment.
Again, the vote total listed was probably on final passage.
This alone is good, this alone, however, does not make a bad bill acceptable.
My guess is that Republicans supported the dealership provisions, when they voted on the Amendment, but voted against final passage, because of other garbage in the final Bill.
Yes, the ones Obama, et al decided they want to stay open such as Mac McClarty, Clinton crony!
sw
This was not an auto dealership bill, it was a massive appropriations bill. Just because the excrement sandwich had a candy bar in the middle was no reason to consume it. And note well it was a symbolic vote at best. The clause will die in committee and as someone posted above, the Chrysler dealers are pretty much toast at this point. The RATs will simply tout their vote for 2010 even though it won’t do squat.
It was a good amendment to a bad bill.
Thus, Republicans voted for the amendment, but against the final bill.
You might also READ some of the other posts.
A REPUBLICAN offered the Car Dealership Amendment, it seems almost ALL Republicans voted FOR that Amendment -—
But that Amendment was tacked to a VERY BAD BILL, overall.
So, they made a horrible Appropriations Bill, that was going to pass, anyway, slightly better with a very smart Amendment.
This is the REPUBLICAN PARTY making things hard for Obama and the Democrats.
This is the REPUBLICAN PARTY forcing Democrats to vote against Obama.
Please stop the circular firing squads, ok?
It honestly seems like some of you like the taste of your own better than you like the taste of your enemy!
Why do you insist on eating our own?
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