GM, Chrysler Car Dealers Plan Protest to Stop Closure
By Paul Bedard, Washington Whispers
In just a few weeks, a group backing legislation to stop General Motors and Chrysler from closing dealerships has gained steam, with over 100 dealers planning to stage protests in Washington next Monday and Tuesday. "We expect a big crowd. We have over 100 RSVPs from dealers, and we've had to find more and more rooms for people," said Jack Fitzgerald, a large East Coast dealer and cochairman of the Committee to Restore Dealer Rights. While the group is not expecting a total reversal of the closings, essentially endorsed by the administration as part of Detroit's restructuring and federal bailout, it does expect passage of legislation to restore dealer rights lost in the bailout.
"We have a tough road ahead and need your continued relentless support," said cochair Tammy Darvish, a Washington-area dealer and director of the National Automobile Dealers Association. "Remember, no rights, no franchises, and none of our futures can be protected if we do nothing." The goal of the legislation—H.R. 2743/S. 1304—is to restore the type of dealership rights companies had before the bailout, such as franchise agreements typically governed by state laws. There are 221 House cosponsors and 14 cosponsors in the Senate. "It's bipartisan, I might add," said Fitzgerald. The legislation could hit the House floor as early as next Wednesday.
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Tags: General Motors | Chrysler
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Reader Comments
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Dropping the dealers is Good Business
Dealerships have manipulated state laws for decades to favor them at the expense of manufacturers and the consumer.
It is contrary to any business model to keep all the dealerships. GM and Chrysler have been in bankruptcy - just as the Right proclaimed they ought. During bankruptcy dealer agreements can be dissolved as part of the bankruptcy. These companies do not need so many dealers. The dealerships are selling 1/3 as many cares as in the 1990's, so why would the manufacturers have more dealers? These unrequited dealers just expect GM and Chrysler to keep ladling money to them.
It is ridiculous to expect them to support a bloated dealer network. I would rather buy my car online than deal with most of the car salesmen out there. Over the years they have demonstrated their underhanded tactics, and have gotten away with many things based otheir local pull with paid off politicians.
Congress would once again show it is bought off by local money that wants nothing that is good for the USA - just good for their own pockets - AT MY EXPENSE. I now own part of GM and Chrysler, so I want them to be SUCCESSFUL. That does not mean keeping huge overhead to support a bunch of dealerships that spend most of their days attaching balloons to antennae.
America - you are always so cold when it comes to cutting other people's jobs - I heard nothing but talk about how the unions were aweful, so let GM and Chrysler go down. Now that the dealers are screaming - suddenly GM and Chrysler are supposed to cover them? What happened to letting them fall? If GM and Chrysler fall, don't ALL the dealers too? Is it better to have them all fall, instead of just half of them?
The logic is missing, the payoffs to politicians will be totally obvious if this legislation passes.
Disgusting politicians - only thinking about getting re-elected instead of what's best for the nation. Both sides of the aisle too - Democrats are just a s bad as the sleezy Republicans on this.
Anyone who votes to allow dealers to sue the manufacturers just out of bankruptcy loses my vote - and all the rest of us who have invested in these companies. Shame on all of you for even considering it. I vote Libertarain next time.
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