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In Congress, 535 New GM Boardmembers

Legislators strong-arm automaker to keep dealerships, factories open

By Jason Farago,  Newser Staff

Posted Oct 29, 2009 7:02 AM CDT
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(Newser) – GM might not have realized when it took $58 billion in bailout money that it would now be beholden to members of Congress, who have been acting like 535 new board members as they angle for their constituents' (and their own) interests. Dems and Republicans alike have pressured companies to keep unprofitable factories open, and several have persuaded GM to reverse closure orders on dealerships in their districts. "When GM took federal dollars, they lost some of their autonomy," one GOP congressman tells the Wall Street Journal.

In one case, a GM dealer in West Virginia who received a closure notice promptly called Sen. Jay Rockefeller, who brought him to Washington and introduced him to the CEO. The dealer got a reprieve, one of 70 won through government intervention. One Montana rep made his interests clear: "I was elected to represent the interests of Montana, not General Motors, which is something that GM should have considered before letting the federal government assume control of their company."

In this Sept, 13, 2009 photo, 2009 Chevrolet Cobalts sit at a Chevrolet dealership in Englewood, Colo.
In this Sept, 13, 2009 photo, 2009 Chevrolet Cobalts sit at a Chevrolet dealership in Englewood, Colo.   (AP Photo/David Zalubowski)
In this June 1, 2009 file photo, a customer looks at vehicles at a General Motors dealership in Burlingame, Calif.
In this June 1, 2009 file photo, a customer looks at vehicles at a General Motors dealership in Burlingame, Calif.   (AP Photo/Paul Sakuma, file)
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COMMENTS
Showing 3 of 9 comments
northeast
Oct 29, 2009 12:20 PM CDT
That's what Frank's new bill will aim to re-create. I'm just saying, lets wait a few months or even a few years before we decide that the bailouts helped the average taxpayer.
Netstorm2k10
Oct 29, 2009 12:11 PM CDT
So how many dealership owners were screwed by GM but didn't have a pocket politician to bail them out? Must suck to lose your business because the company you sell cars for doesn't know how to manage itself. Feels weird to defend a car dealership.
tomodachi
Oct 29, 2009 8:21 AM CDT
@northeast: A recession is primarily about GDP... and not specifically employment. But yes... i hear you... and won't argue with you about the lack of US economic health. But the primary point here is that GWB overspent this country into historic economic turmoil by taxing few... by spending insanely... by creating more debt than any before him... by borrowing much from the Chinese... by warring with many... by neglecting US infrastructure... and by giving corporations historic freedoms, allowing many of them to wreck financial havoc to the entire US financial system. The point is: Remember WHY the US is in economic trouble... and thank God that the white house no longer seats a republican (so called) "fiscal conservative."

 
Congress • General Motors • auto industry • Jay Rockefeller • bailout • auto bailout

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