House Votes to Block Dealership Closings

By Rob Quinn, Newser Staff

Posted Jul 17, 2009 5:41 AM CDT

(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.

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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. (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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