House Votes to Block Dealership Closings

Lack of competition expected to drive up GM, Chrysler's prices

(NEWSER) - The shake-up of America's auto industry will mean fewer auto dealers but the streamlining won't be making the cars any cheaper, experts tell the Boston Globe. Chrysler and General Motors are likely to turn to the Japanese model of fewer brands and fewer dealers when they emerge from bankruptcy, and the lack of competition among dealers is expected to add as much as several thousand dollars to the price of a new car. More»

(NEWSER) - African-American and Latino car dealers will likely take a big hit in the dealership closures announced by Chrysler and planned at GM, the Wall Street Journal reports. The minority dealerships, located mainly in urban areas, have faced stiff competition as business has moved increasingly to suburbia. “We're more vulnerable,” said the president of a minority dealer group. “We were the last ones to come to the table.” More»

Comments a 'new low in dishonesty,' Obama campaign says

(NEWSER) - Mitt Romney says he deserves a lot of the credit for saving America's auto industry, despite his vocal opposition to taxpayer help for General Motors and Chrysler in 2008. The Republican, speaking at an auto parts maker in Cleveland yesterday, said Obama followed his lead by allowing both firms to go into a managed bankruptcy—although the course of action Romney suggested was very different from the one Obama took, because both firms were able to file an orderly bankruptcy on the strength of government loans Romney opposed, notes AP . More»

Some Republicans were ready to let GM, Chrysler die: Jonathan Cohn

(NEWSER) - Barack Obama reportedly plans to make the auto bailout a key part of his reelection campaign, and Jonathan Cohn of the New Republic thinks that’s a great idea. Chrysler and GM are in much better shape, he argues—GM in particular is “reporting big profits, it is winning design awards, and, most important of all, it is selling lots of cars.” More importantly, employment is creeping higher in states like Michigan with a heavy auto industry presence. More»

Half of those that appealed will be allowed to stay open

(NEWSER) - About 600 GM dealerships are getting a second life. Of the 1,160 dealers who appealed orders to shut down as part of bankruptcy proceedings, approximately half will be allowed to stay open. But one dealer tells the Detroit News that it's no cause for celebration until the conditions are made clear, possibly as soon as today. More»