Bill to overturn dealer closings passes House vote
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Bill to overturn dealer closings passes House vote
http://www.leftlanenews.com/bill-to-...ouse-vote.html
Bill to overturn dealer closings passes House vote
A bill that seeks to overturn dealer closings at Chrysler and General Motors has passed the House and is now on its way to a Senate vote. The bill passed a House vote last night with a final tally of 219-208. Although the bill is now on to a Senate vote, it still faces heavy opposition, namely from the Obama administration.
If the bill is voted into law, Chrysler would have to reverse its decision to close 789 U.S. dealerships and GM would be forced to renew 1,300 franchise agreements recently earmarked for termination. Not surprisingly, both automakers oppose the measure.
“If Congress reverses this process, it flies in the face of a U.S. vehicle market that has declined 40 percent since 2007,” Chrysler Vice President Peter Grady said in a statement.
“Indeed, the U.S. dealer network was built to serve a market that once sold 16 million vehicles a year. Those days are gone.”
The Obama administration also opposes the bill as it will unravel bankruptcies at both automaker and billions in government funding. It remains to be seen if the bill has enough momentum to pass the Senate, but a vote is expected in the coming weeks.
A bill that seeks to overturn dealer closings at Chrysler and General Motors has passed the House and is now on its way to a Senate vote. The bill passed a House vote last night with a final tally of 219-208. Although the bill is now on to a Senate vote, it still faces heavy opposition, namely from the Obama administration.
If the bill is voted into law, Chrysler would have to reverse its decision to close 789 U.S. dealerships and GM would be forced to renew 1,300 franchise agreements recently earmarked for termination. Not surprisingly, both automakers oppose the measure.
“If Congress reverses this process, it flies in the face of a U.S. vehicle market that has declined 40 percent since 2007,” Chrysler Vice President Peter Grady said in a statement.
“Indeed, the U.S. dealer network was built to serve a market that once sold 16 million vehicles a year. Those days are gone.”
The Obama administration also opposes the bill as it will unravel bankruptcies at both automaker and billions in government funding. It remains to be seen if the bill has enough momentum to pass the Senate, but a vote is expected in the coming weeks.
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As much as GM and Chrysler need to reduce dealers, if the closings were done without regard to bankruptcy laws, then I would support this bill (I don't know if they were or not). I think it's more important to ensure that established bankruptcy laws are followed in all cases, and can't be subverted by a presidental whim.
On the other hand, if the closings were done by the book, and this is just a case of congressmen trying go around the laws for sake of votes in their home riding, then this bill shouldn't pass.
On the other hand, if the closings were done by the book, and this is just a case of congressmen trying go around the laws for sake of votes in their home riding, then this bill shouldn't pass.
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Thats exactly what it is. Its lead by a Senator from Ohio who had the most closings of all 50 states....atleast Chrysler dealers.
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The closings were done by the book - but the book was rewritten right before the closings.
It's a double-edged sword...a catch-22. I despise gov't interference in private business, so my instinct is to oppose this bill without second thought. However, it was heavy gov't intervention that got all this going in the first place, so its a matter of "can two wrongs make a right in this case"?
They opened the can of worms....now those worms are crawling around in all kinds of cracks and crevices...
It's a double-edged sword...a catch-22. I despise gov't interference in private business, so my instinct is to oppose this bill without second thought. However, it was heavy gov't intervention that got all this going in the first place, so its a matter of "can two wrongs make a right in this case"?
They opened the can of worms....now those worms are crawling around in all kinds of cracks and crevices...
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From: Sterling Heights, MI
The closings were done by the book - but the book was rewritten right before the closings.
It's a double-edged sword...a catch-22. I despise gov't interference in private business, so my instinct is to oppose this bill without second thought. However, it was heavy gov't intervention that got all this going in the first place, so its a matter of "can two wrongs make a right in this case"?
They opened the can of worms....now those worms are crawling around in all kinds of cracks and crevices...
It's a double-edged sword...a catch-22. I despise gov't interference in private business, so my instinct is to oppose this bill without second thought. However, it was heavy gov't intervention that got all this going in the first place, so its a matter of "can two wrongs make a right in this case"?
They opened the can of worms....now those worms are crawling around in all kinds of cracks and crevices...
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Somebody already said it, but the rules were changed in the middle of the game so they could do this. This seems to be an ongoing theme with this administration though.
I don't necessarily think that having all of these dealerships was the right business thing to do, but I also don't think that the way that the bankruptcy laws that had existed in this country for almost 100 years were pissed on in the process is something that should be tolerated.
My leanings to following the rule of law are more powerful than my belief in what may or may not be the correct business model for the current automotive landscape.
I don't necessarily think that having all of these dealerships was the right business thing to do, but I also don't think that the way that the bankruptcy laws that had existed in this country for almost 100 years were pissed on in the process is something that should be tolerated.
My leanings to following the rule of law are more powerful than my belief in what may or may not be the correct business model for the current automotive landscape.
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From: Albany, NY
I'd love to see my home town dealership re-authorized to sell and service Chevys but this bill is clearly just pandering to constitutes. If it does pass can someone tell me how exactly it will hurt GM. It doesn't cost them anything, the dealer pays for just about everything.
you are such a tool, do you even read the articles, or just immediately post your anti Obama troll posts?
here is another = GM, Chrysler, White House officials try to block House bill reversing planned shutdowns
This is a bipartisan bill with a lot of Republican support.
here is another = GM, Chrysler, White House officials try to block House bill reversing planned shutdowns
This is a bipartisan bill with a lot of Republican support.
Last edited by Z28x; Jul 17, 2009 at 03:31 PM.
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From: Miami, Fl USA
somebody already said it, but the rules were changed in the middle of the game so they could do this. This seems to be an ongoing theme with this administration though.
I don't necessarily think that having all of these dealerships was the right business thing to do, but i also don't think that the way that the bankruptcy laws that had existed in this country for almost 100 years were pissed on in the process is something that should be tolerated.
My leanings to following the rule of law are more powerful than my belief in what may or may not be the correct business model for the current automotive landscape.
I don't necessarily think that having all of these dealerships was the right business thing to do, but i also don't think that the way that the bankruptcy laws that had existed in this country for almost 100 years were pissed on in the process is something that should be tolerated.
My leanings to following the rule of law are more powerful than my belief in what may or may not be the correct business model for the current automotive landscape.
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From: Sterling Heights, MI
Correct. I think what he is saying is that IF the dealerships are being closed as a result of playing fast and loose with established bankruptcy law, the sponsors of the bill are doing the right thing by effectively blocking it with this legislation. Rule of law before what's best for business.
Whether or not that is actually the case, I do not know. I'm sure there are gray, debatable areas somewhere in this.
Whether or not that is actually the case, I do not know. I'm sure there are gray, debatable areas somewhere in this.
Last edited by Z28Wilson; Jul 17, 2009 at 03:55 PM.
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From: Albany, NY
Correct. I think what he is saying is that IF the dealerships are being closed as a result of playing fast and loose with established bankruptcy law, the sponsors of the bill are doing the right thing by effectively blocking it with this legislation. Rule of law before what's best for business.
Whether or not that is actually the case, I do not know. I'm sure there are gray, debatable areas somewhere in this.
Whether or not that is actually the case, I do not know. I'm sure there are gray, debatable areas somewhere in this.
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Joined: Jan 2009
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Wow, reading comprehension owns you yet again!And you accusing someone of being a troll is completely laughable considering half the threads you make.
I think what he is saying is that IF the dealerships are being closed as a result of playing fast and loose with established bankruptcy law, the sponsors of the bill are doing the right thing by effectively blocking it with this legislation. Rule of law before what's best for business.
Whether or not that is actually the case, I do not know. I'm sure there are gray, debatable areas somewhere in this.
Whether or not that is actually the case, I do not know. I'm sure there are gray, debatable areas somewhere in this.
And thank you. At least you're able to understand what is being written.
This guy is simply looking for any angle on me since I embarrassed him in the "NK missile" thread and the "defense spending chart" thread.
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From: Sterling Heights, MI
He's allowed to have an opinion (as long as he doesn't cross a line with the mods).
Neither you nor I nor (likely) anyone else here is a bankruptcy attorney. Quite frankly I don't have the time or the sanity to dive too deep into researching what laws were bent or broken, if any. From what I can gather, there were some gray areas, as I mentioned before. I'd think that often times there WILL be gray areas in such an unprecidented filing.
Neither you nor I nor (likely) anyone else here is a bankruptcy attorney. Quite frankly I don't have the time or the sanity to dive too deep into researching what laws were bent or broken, if any. From what I can gather, there were some gray areas, as I mentioned before. I'd think that often times there WILL be gray areas in such an unprecidented filing.