Chrysler And GM CEOs Summoned To Washington To Testify On Dealership Closures

The Senate Commerce Committee plans to call the CEOs of Chrysler LLC and General Motors to testify early next month about concerns over their plans to close hundreds of dealerships.

The companies need to address "the short and insufficient transition period given to dealerships for franchise terminations," said Senators John Rockefeller and Kay Bailey Hutchison, the panel's Democratic chairman and ranking Republican, today in a letter to Chrysler's Robert Nardelli and GM's Fritz Henderson.

They said the executives must address what happens to the closing dealers' inventories of vehicles and parts, along with the companies' efforts to minimize job losses and provide consumers with details about warranties and future service needs. The committee plans to hold a hearing June 2 on the dealer closures, Hutchison said Thursday.

2010 BMW 550i And 530d GT PHOTO GALLERY

2010 Lexus IS-C And HS250H Photo Gallery

2009 Lexus LX570 Photo Gallery

2009 BimmerFest Photo Gallery

If you want to see your photos running on our homepage photo ticker, be sure to upload your photos on the go by sending them to Mobile@AutoSpies.com

There are photos and then there are AutoSpies.com photos!

AutoSpies.com is ranked number one on Google search for auto shows

Share on Facebook

Read Article

Whelan - 5/26/2009 2:41:18 PM

0 Boost

A dealership does not really cost the makers anything in the big picture. They are the facilitators that are there to sell the product and they own the cars technically through different banks and credit unions. They then pay the manufacturer for the vehicles.

When they were worried GM and Chrysler said they were covered and not to worry about the products on the lots. Then they get notices that they are being shut down and whatever they have in inventory they are now responsible for. I call BS. But then again this was Obama's work from the beginning so let's see how he runs with it now. He is trying to help our auto industry, but in doing so he has them continually come to DC to get yelled at for bad business practices and the like.

I don't recall AIG being brought to question on the money being given to them. Nor any other institutions.

Question as well. If you have a dealership, I am assuming there are ones that are franchised and others where the land is owned. So couldn't the owners of some dealers go to different companies (Toyota, Honda, etc.) if they could? Also why not keep open as a service center or parts supplier? If the sales part closes, you can still claim to be a Chrysler Service Center. Keep your certification, etc.

daverave - 5/27/2009 12:57:39 AM

-2 Boost

What a bunch of nonsensical posturing by the politicians. I hate Chrysler and GM, but they did in fact give dealers an incredible amount of advance lead time that franchises would be terminated. Any "good"/performing dealership can sell everything on the lot in 60 days. A crap ass dealer might take 6 months. Were they NOT given more than 6 months notice? Yes. Do Ford and GM need crappy dealers to keep losing them sales, cos the dealers don't respond to leads or have poor conversion rates? No. Politicians posturing in Washington; nothing new about that.