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SUNDAY, NOVEMBER 22, 2009
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House Votes to Block Dealership Closings

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(Newser) – A spending bill passed by the House last night includes a provision to reopen hundreds of Chrysler dealerships and prevent the closing of over 2,000 more planned by GM, the Detroit News reports. The measure, opposed by the White House, will force the automakers to give dealers targeted for closing under bankruptcy agreements "a decent review process, a decent appeals process," said the head of the House Appropriations Committee.

The National Automobile Dealers Association warns that the closures could cost the country up to 200,000 jobs, further delaying economic recovery. Automakers counter that there are simply too many dealers, and failure to streamline will threaten their own recovery.  A similar measure making its way through the Senate faces an uncertain future.

Liquidation signs fill the windshields of new cars in the showroom of the Timberline Dodge dealership in Portland, Ore.
Liquidation signs fill the windshields of new cars in the showroom of the Timberline Dodge dealership in Portland, Ore.   (AP Photo/Don Ryan)
Howar Selz, owner of Big Valley Chrysler Jeep Dodge, stands outside the dealership in Los Angeles. His franchise was not renewed under Chrysler's efforts to cut dealer numbers.
Howar Selz, owner of Big Valley Chrysler Jeep Dodge, stands outside the dealership in Los Angeles. His franchise was not renewed under Chrysler's efforts to cut dealer numbers.   (AP Photo/Reed Saxon)
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We will not as taxpayers in this country give billions to General Motors and Chrysler until they come to terms with the hundreds of thousands of people they have put out
of work. - Rep. Steve LaTourette (R-Ohio)

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2 comments
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Reader65069154
Jul 17, 09 9:12 AM CDT
Outstanding. Now my taxes can be used to prop up the fat even GM and Chrysler can recognize they need to cut. What's next, a mandate that every household must buy a GM? Reply
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Reader64481089
Jul 17, 09 9:34 AM CDT
In the late 60's and on into the 70's if you wanted the best deal on a car you could opt to travel to Michigan and purchase from a lot near the factory which induced GM, Ford to open even more dealerships forging contracts with these people which GM is now breaking and leaving no economic option other than the dealer to return the cars on the lot's and also file for bankruptcy because the returned cars do not cover what GM says is still owed. GM came out the winner in each case screwing over the private dealerships that now sit empty across not just Michigan but the entire country. GM had contracts which they voided ruining these companies and causing massive unemployment and they need to be allowed to reopen and at least build new markets and perhaps even begin by selling something other than GM once allowed to reopen, after all GM, Chrysler and Ford are not the only American made cars any longer if indeed the "Big Three" can actually be classified as American made since the majority are built in Mexico as well as elsewhere Reply
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