Dems express 'growing concern'

Dems express 'growing concern'

By AMIE PARNES

House Majority Leader Steny H. Hoyer and Reps. Chris Van Hollen and
Daniel Maffei have circulated this letter today ...

.... to Obama expressing “growing concern” with the closures of GM and
Chrysler dealerships across the country. The lawmakers say they’re
asking for a “compelling justification as to how closing healthy
dealerships will make the automakers more financially sound. The
lawmakers are asking for lawmakers to sign this letter by 5p.m.
today.

Full letter below:

Dear President Obama:

We are writing to express our concerns about General Motors’ and
Chrysler’s decision to close profitable automobile dealerships across
the country, and urge you to ask GM and Chrysler to delay final action
on proposed closures pending further review of the decision to
consolidate dealerships and the process by which Chrysler and GM
selected the dealerships to close.

Closing these dealerships will put over 100,000 jobs at risk at a time
when our country is shedding jobs at an alarming rate. We also
question the criteria being used to determine which dealerships should
be closed and the fundamental fairness involved in this effort. It is
our view that the market rather than leaving it up to the
manufacturers whose poor leadership contributed to their demise.
Furthermore, we believe car dealers will be key players in any effort
to revive the American auto industry.

We believe the dealerships are one of the auto industry’s key sources
of strength and the manufacturers should continue to honor their
agreements and contracts. The dealerships, and their more than 1
million employees, form personal relationships with customers that
often contribute to brand loyalty and will be key to General Motors’
and Chrysler’s recovery following this economic downturn. While we
understand the desire to reduce the number of unprofitable
dealerships, no one has yet sufficiently explained the need to close
profitable dealerships.

We recognize that efforts by your Auto Task Force prevented the total
liquidation of General Motors and Chrysler, as well as their
dealership networks. We commend your efforts to help these businesses
survive these challenging economic times.

However, we are concerned that manufacturers are closing profitable
dealerships to circumvent current contracts which could require
expensive buy-outs under normal conditions. We are also concerned
about allegations that dealers that have previously stood up for their
rights against the manufacturers are being targeted by these closures.
We believe that the forced closures of profitable dealerships needs to
be scrutinized by the Task Force to prevent additional future
financial loses to General Motors and Chrysler and job loses across
the United States

We may consider legislative proposals to ensure that dealers and their
employees are treated fairly, and we look forward to your timely
response.
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