Auto Dealers Descend On D.C., Demand Right To Keep Dealerships Open

By Sam Wechsler – Talk Radio News Service

At a news conference on Tuesday, over 150 Chrysler and GM car dealership owners, whose lots have been or will soon be closed, expressed their support for the Automobile Dealer Economic Rights Restoration Act of 2009 (HR-2743).

Rep. Dan Maffei (D-N.Y.) last month introduced the bill, which aims to restore the rights and franchise agreements to General Motors and Chrysler car dealerships as they existed prior to each company’s bankruptcy. The bill is gaining momentum with over 240 co-sponsors in the House.

Rep. Sheila Jackson Lee (D-Texas), who spoke at the news conference, vocalized her support for the bill by asking, “Who among us would stand against the restoration of the civil rights of working Americans?”

“[Chrysler and GM] could not tell me how shutting down any of these dealers saved them money,” added House Majority Leader Steny Hoyer (D-Md.).

According to Darcars of Rockville owner Tammy Darvish, almost 170,000 jobs will be lost as a direct result of these closings.

Prior to the companies’ bankruptcies, none of the dealerships represented at the news conference could have been terminated because they were compliant with all franchise requirements. Many of the dealerships were extremely profitable. Jim Tarbox, who owns dealerships in both Massachusetts and Rhode Island, owned a Jeep dealership in the top five percent in sales volume nationally that was shut down due to personal gripes, he said.

In June, James Press, the CEO of Chrysler, stated that shutting down dealerships would save the company three billion dollars.

Lelica Callaremi, whose family has been with Chrysler and GM combined for 41 years, learned that her dealership terminated with no explanation given. She pleaded, “Mr. Henderson and Mr. Press [CEO’s of GM and Chrysler, respectively], how do you sleep at night?”