WASHINGTON (July 19, 2010) – In response to the report requested by Congress from the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) on how General Motors and Chrysler dealerships were selected for termination, Ed Tonkin, chairman of the National Automobile Dealers Association (NADA), issued the following statement:
“The SIGTARP report confirms what was said in NADA’s testimony presented to Congress in several hearings and to the Auto Task Force in multiple meetings: ‘We do not see how these cuts make economic sense – not for the companies, not for the dealers, not for local communities and certainly not for the struggling U.S. economy.’
“Similarly confirmed by the report was NADA’s unwavering position – also presented to Congress on multiple occasions – that ‘rapid dealer reductions increase unemployment, threaten communities and decrease state and local tax revenue without any material corresponding decrease in the automaker’s costs.’
“Importantly, the Inspector General’s report also validates the Congressional efforts which gave thousands of dealers the opportunity to have a neutral arbitrator review their cases and possibly save thousands of jobs.
“Finally, the report demonstrates what NADA has maintained for many years – that the franchised automobile dealership is and will continue to be the most powerful job-creating entity on Main Streets all across America and that NADA’s 17,000 members provide long-term economic opportunity for nearly 1 million Americans.”
Read the SIGTARP Report Here.
TARP Inspector General Testifies on GM, Chrysler Dealership Closures
On July 21, Barofsky, Special Inspector General for the Troubled Asset Relief Program (SIGTARP) testified before the Senate Finance Committee on the TARP program. The hearing discussed SIGTARP’s recent report on the Auto Task Force’s role in the accelerated pace and scope of the dealership closures of auto companies who received TARP funds. Barofsky testified that the report looked at the accelerated dealer closure process and found that there was insufficient Auto Task Force consideration and analysis of the cost of thousands of lost dealership jobs and the actual benefit to the companies’ viability. He outlined how the Auto Task Force encouraged the use of the bankruptcy process to “get around the state franchise laws to terminate [dealerships] all at once.” While the companies selected the dealerships for termination, the report criticizes the Task Force for the lack of transparency, accountability, and oversight of the dealership closure process. To view Barofsky's testimony, click here. Watch TARP Inspector General Neil Barofsky discuss the report on CNBC.
WASHINGTON, Dec. 17, 2009 — President Obama signed the 2010 Spending Bill, which contains the provisions regarding dealer arbitration rights, late yesterday.
NADA distributed
a memo to GM and Chrysler dealers regarding this new law (
.pdf).
Following are key documents and NADA actions on dealer rights:
NADA Commends the U.S. Senate for Passing Dealers Rights Amendment in Spending Bill (Dec. 13, 2009)
NADA Encouraged by Prompt Passage of Dealer Rights Amendment in the House (Dec. 10, 2009)
NADA, ATAEs Support Compromise Dealer Rights Amendment (Dec. 8, 2009)
Dealer Rights Legislation Cosponsors (Dec. 3, 2009)
NADA Issues Statement on GM's Plans to Address Dealership Closings (Dec. 3, 2009)
NADA Issues Statement on Chrysler's Plans to Address Dealership Closings (Dec. 3, 2009)
Rep. Van Hollen Statement on Chrysler and GM Dealership Plans (Dec. 3, 2009)
NADA's Position on Dealer Rights (Oct. 28, 2009)
NADA member dealers testify in support of dealer rights legislation before the House Small Business Committee (Sept. 16, 2009)
NADA President Phil Brady Outlines NADA Actions on Dealer Rights in Letter to Automotive News (Aug. 31, 2009)
NADA Responds to Comments by the Head of the White House Auto Task Force (July 21, 2009)
Statement by 2009 NADA Chairman John McEleney: NADA Welcomes Congressional Oversight of Dealership Closures (June 12, 2009)
NADA Applauds Congressional Efforts to Restore Dealer Rights (June 10, 2009)
NADA Chairman Urges Congress to Intervene to Prevent Unfair Treatment of Auto Dealers (June 3, 2009)
Congress Highlights Need to Slow Down Dealership Closings and Layoffs (May 21, 2009)
NADA Statement on GM Dealership Cuts (May 15, 2009)
NADA Statement on Chrysler’s Dealership Reduction Announcement (May 14, 2009)
Auto Dealers Urge Congress to Intervene with the Obama Administration to Oppose Drastic Dealer Cuts (May 13, 2009)
National Auto Dealers Say Chrysler Bankruptcy Should Not Be Used to Cut Dealer Network (April 30, 2009)
NADA Urges GM to Treat Dealers Fairly and Equitably (April 28, 2009)