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Dealerships Use Congressional Bill to Fight GM, Chrysler Ordered Closings

posted 06/10/09 6:12 pm
NewsChannel 8 - Dealerships Use Congressional Bill to Fight GM, Chrysler Ordered Closings
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WASHINGTON - Local lawmakers stood outside the Capitol building defending U.S. auto dealerships, after GM and Chrysler announced plans to cut thousands of franchises.

Lawmakers made it clear that it doesn't make sense to close dealerships that would result in thousands of lost jobs. In an effort to keep the dealerships alive, the Automobile Dealer Economic Rights Restoration Act intends to protect jobs, workers and small business owners

House leaders from both parties protested against GM and Chrysler's decision to close thousands of dealerships as a part of their restructuring plan.

"Why has somebody arbitrarily decided which are going to be closed when the market is the best judge of who can survive competitively out there or not," said Maryland Rep. Chris Van Hollen.

Executives from the two companies say there are too many dealers to support their current operations. Local lawmakers say making cuts won't solve the problem.

Members of Congress from across the state of Maryland say a recently introduced bill can restore the rights of auto dealers.

"We're trying to adopt this from a principle position. Let's adopt a principle that's fair to everybody and then determine based on those principles who should continue to operate and who should not," said Van Hollen.

Local owners stand by the bill. "It protects our constitutional rights in America. That's what this bill does," said Darcars' Tammy Davish.

Dealerships say it's an extra lifeline to keep their businesses going. "If we gotta close up, we gotta look somebody right in the eye and say I can't keep ya. I don't have anything for you to do," said Jack Fitzgerald, Fitzgerald Auto Malls.

Maryland Rep. Steny Hoyer says this issue is a top priority and he hopes lawmakers will act on the bill before the July 4th recess.

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