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| U.S. House Majority Leader Steny Hoyer, D-Md., speaks at a news conference June 10 in support of legislation that would prevent automaker bankruptcies from trampling dealers' rights under state franchise laws. |
WASHINGTON, June 10, 2009 – NADA today joined five members of Congress at a news conference at the Capitol to share their concern about dealership closings and to announce their support for H.R. 2743, the Automobile Dealer Economic Rights Restoration Act. The proposed legislation seeks to ensure that the bankruptcies of Chrysler and GM do not eviscerate dealers’ rights under state franchise laws.
The members were House Majority Leader Steny Hoyer (D-Md.) along with Reps. Christopher Van Hollen (D-Md.), Daniel Maffei (D-N.Y.), Frank Kratovil (D-Md.), and Roscoe Bartlett (R-Md.).
Just two weeks ago in a conversation with the White House, Hoyer said he asked, “ ‘What money does it save the manufacturers if you shut down a dealership?’ The answer: ‘Zero. Zero. Zero.’ If that’s correct, why are we – who are working so hard to stop the hemorrhaging of jobs – why would we not want to save jobs in the dealerships?”
Van Hollen noted that the legislation is about “simple fairness” and that it’s important to let the market work. “Lots [of dealers] are going out of business” because of changes in auto retailing.
Maffei and Kratovil, sponsors of H.R. 2743, said they were both hearing from a number of their constituents that dealerships are vital to the economic and general well-being of their communities.
Kratovil said that nothing demonstrates the Main Street/Wall Street divide better than dealership closings. “It’s a bailout for the big guys, a force-out for the little guys,” he said. Of the 15 dealerships in his district, four are being closed, which he says has “a massive economic impact.”
Bartlett, noting that dealers pay for the right to sell manufacturers’ vehicles, said that with fewer dealers, there will be less competition and higher prices for buyers.
“Brand loyalty is linked to the dealer,” he said. “Customers go to the dealer of their choice.”
At the press conference, NADA President Phil Brady provided a written statement in support of the legislation (
click here for the NADA statement). Suburban Maryland dealers Jack Fitzgerald and Tammy Darvish, NADA Metro Washington director, spoke to reporters and thanked the lawmakers for their support.
Asked about the timing for movement on the proposed legislation, Hoyer said that “time is of the essence.” He expects the measure to come up for a vote before the July 4 recess.
Source: NADA Newswire