House bill seeks to reverse dealer closings at GM, Chrysler
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From: Charleston, WV
House bill seeks to reverse dealer closings at GM, Chrysler
http://www.leftlanenews.com/house-bi...-chrysler.html
House bill seeks to reverse dealer closings at GM, Chrysler
More than 3,100 General Motors and Chrysler dealers could be in line for a new lease on life as a House bill to overturn dealer closing passed a House committee vote last night. The bill, part of larger spending bill, will move to the House floor next Wednesday.
Championed by Rep. Steven LaTourette, R-Ohio, the bill would restore thousands of dealers that were terminated during bankruptcies at General Motors and Chrysler. GM plans to shed about 2,400 dealers through its bankruptcy process while Chrysler has already eliminated 789 dealers.
“Car companies have used bankruptcy to run roughshod over state bankruptcy laws,” LaTourette told Automotive News.
Not surprising, General Motors opposes the House bill. “Such legislation, if passed, would put our long-term viability at risk,” GM spokesman Greg Martin said.
“We’ve taken extraordinary efforts, from product planning to manufacturing to labor agreements, to reinvent the company, and we need a dealer network to match. This legislation seeks to overturn the Bankruptcy Court’s decision after the fact to protect a single stakeholder among so many that have been called to sacrifice during our restructuring.”
Chrysler has yet to comment on the bill.
Although the bill passed a House committee last night, it still faces plenty of opposition. The move to reinstate all dealers cut by GM and Chrysler would largely negate the government’s efforts to save the Michigan automakers, which could prove to be a costly reversal for the U.S. taxpayers.
More than 3,100 General Motors and Chrysler dealers could be in line for a new lease on life as a House bill to overturn dealer closing passed a House committee vote last night. The bill, part of larger spending bill, will move to the House floor next Wednesday.
Championed by Rep. Steven LaTourette, R-Ohio, the bill would restore thousands of dealers that were terminated during bankruptcies at General Motors and Chrysler. GM plans to shed about 2,400 dealers through its bankruptcy process while Chrysler has already eliminated 789 dealers.
“Car companies have used bankruptcy to run roughshod over state bankruptcy laws,” LaTourette told Automotive News.
Not surprising, General Motors opposes the House bill. “Such legislation, if passed, would put our long-term viability at risk,” GM spokesman Greg Martin said.
“We’ve taken extraordinary efforts, from product planning to manufacturing to labor agreements, to reinvent the company, and we need a dealer network to match. This legislation seeks to overturn the Bankruptcy Court’s decision after the fact to protect a single stakeholder among so many that have been called to sacrifice during our restructuring.”
Chrysler has yet to comment on the bill.
Although the bill passed a House committee last night, it still faces plenty of opposition. The move to reinstate all dealers cut by GM and Chrysler would largely negate the government’s efforts to save the Michigan automakers, which could prove to be a costly reversal for the U.S. taxpayers.
Thread Starter
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Joined: Dec 2002
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From: Charleston, WV
I doubt this goes anywhere. It is led by a Senator from Ohio. They had the most closures (Chrysler) of any state I'm sure GM dealerships were similar. If they didn't "try" to do something about this, their chance of re-election would be severly hurt.
Chrysler dealerships have been shut down for a month now, and I'm sure most employees (atleast the best ones) have already found new jobs.
Chrysler dealerships have been shut down for a month now, and I'm sure most employees (atleast the best ones) have already found new jobs.
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Joined: Jul 2001
Posts: 1,808
From: FL/MI
When I hear any Washington D.C. politician foment on anyone riding roughshod over the states, well, that's been going down for a long time. He should have stayed awake in Civics class.
Ohio is ranked as having 46th-worst tax climate for business compared to the other 49 states. It's also ranked 49th in business climate after a survey of numerous CEO's. I'll grant they attract some big biz on occasion to to Ohio, but it's likely that it's due to "running roughshod over tax rules" to draw the bigger outfits.
THE GUY IS AN IDIOT to make such assertions in this economy.
Ohio is ranked as having 46th-worst tax climate for business compared to the other 49 states. It's also ranked 49th in business climate after a survey of numerous CEO's. I'll grant they attract some big biz on occasion to to Ohio, but it's likely that it's due to "running roughshod over tax rules" to draw the bigger outfits.
THE GUY IS AN IDIOT to make such assertions in this economy.
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Joined: Jan 2000
Posts: 10,285
From: Albany, NY
all the dealers near me have already gotten rid of all their cars. Some have even taken down signs. Where was this bill 3 months ago. Too little too late for 80%+ of the dealers I'd say.Or how about no sales tax on GM, Chrysler, Ford, and Tesla cars. That should get sales moving.
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Joined: Jul 2001
Posts: 1,808
From: FL/MI
I'll tell you that I don't like to see anyone go out of business. I don't like to see folks out of work, and the dealers that are no longer GM and can't pick up another brand to sell is sad deal for some good folk who worked there.
However, with the demand far lower for new vehicle purchases, the less need for the number of dealers.
My opinion is that some dealers did more to hurt GM through their arrogance toward their customers and toward the GM Corporation than any good they did by being in a convenient location. Making certain the point of purchase and service is something the customer finds good rather than horrid is something every brand must address. Imports have done well moving product without a store on every corner.
Done correctly, the focus can be pressed home regarding customer satisfaction with sales and service.
I don't suggest that every dealer that was closed was "bad". I only suggest that being the best at every opportunity is going to play a big part in any chance of GM being successful.
Some dealers needed to go in a big way and this restructuring was a narrow window of opportunity to do what would not have been possible in a different economic climate, IMO.
However, with the demand far lower for new vehicle purchases, the less need for the number of dealers.
My opinion is that some dealers did more to hurt GM through their arrogance toward their customers and toward the GM Corporation than any good they did by being in a convenient location. Making certain the point of purchase and service is something the customer finds good rather than horrid is something every brand must address. Imports have done well moving product without a store on every corner.
Done correctly, the focus can be pressed home regarding customer satisfaction with sales and service.
I don't suggest that every dealer that was closed was "bad". I only suggest that being the best at every opportunity is going to play a big part in any chance of GM being successful.
Some dealers needed to go in a big way and this restructuring was a narrow window of opportunity to do what would not have been possible in a different economic climate, IMO.
Last edited by 1fastdog; Jul 10, 2009 at 08:56 AM.
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Joined: Oct 2003
Posts: 1,647
From: Jupiter, FL
Another issue with having too many dealers is competition between the dealers. With too much competition that gives the buyer more bargaining power and lowers the profit margin. In my area there are easily 10 different chevy dealers I can go to within a 1/2 hour drive.
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Joined: Jan 2000
Posts: 10,285
From: Albany, NY
Another issue with having too many dealers is competition between the dealers. With too much competition that gives the buyer more bargaining power and lowers the profit margin. In my area there are easily 10 different chevy dealers I can go to within a 1/2 hour drive.
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