House Votes to Block Dealership Closings

By Rob Quinn,  Newser Staff
Posted Jul 17, 2009 5:41 AM CDT
Liquidation signs fill the windshields of new cars in the showroom of the Timberline Dodge dealership in Portland, Ore.    (AP Photo/Don Ryan)
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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.