The Conservative Cave
Current Events => Politics => Topic started by: thundley4 on June 03, 2009, 10:41:38 AM
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WASHINGTON (Reuters) – General Motors Corp and Chrysler LLC, both bankrupt, will try on Wednesday to ease congressional concern, and in some cases anger, over their plans to slash more than 2,400 dealerships.
Members of the Senate Commerce Committee plan to grill GM Chief Executive Fritz Henderson and Chrysler President Jim Press about the lone aspect of restructuring that has triggered a broad response from Congress since dealers are nationwide.
"Rapid dealer reductions increase unemployment, threaten communities and decrease state and local tax revenue without any material corresponding decrease in an automaker's costs," said John McEleney, chairman of the National Automobile Dealers Association who sells vehicles made by GM, Toyota Motor Corp and Hyundai Motor Co in Iowa.
At risk are dealers at both companies that employ more than 100,000 people, industry estimates show.
In his testimony, McEleney will emphasize the need for government to provide new financing to Chrysler so the company can buy back unsold inventory, parts and other assets, and give dealers more time to close their businesses.
Link (http://news.yahoo.com/s/nm/20090603/bs_nm/us_autos_dealers_3)
Will anyone bring up the subject of politically motivated dealership closings? Yeah, right.
On a side note, Kay Bailey Hutchison , this morning said she does intend to question whether the closing were the car makers idea/choice or the car czar.
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Michelle Malkin has been on this for quite a while. Lots of Republican owned dealerships closed, and a few franchises were switched from Republicans to politically connected democrats.
We should have let it all die back in October. TARP just looks worse and worse as day follows day.
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TARP is designed not to work. So, with under 10% distributed, it is failing, as designed. Why is this a shock.
Recovery will not occur until we require government t put a FLOOR on the $ printed to cover debt, and we should have with the Bush Admin. bail.