Right Lane Cruiser
06-03-2009, 07:36 AM
http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg The court must still approve Chrysler's dealership strategy. (http://www.reuters.com/article/newsOne/idUSTRE5521D220090603)
http://www.cleanmpg.com/photos/data/501/Chrysler_Cars_on_Dealership_lot.jpgJohn Crawley - REUTERS (http://www.reuters.com) - June 3, 2009
These guys are getting hit hard. :( --Ed.
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.
Press told Congress last month in a letter the company would help dealerships losing their franchise agreements beyond the... http://www.reuters.com/article/newsOne/idUSTRE5521D220090603
http://www.cleanmpg.com/photos/data/501/Chrysler_Cars_on_Dealership_lot.jpgJohn Crawley - REUTERS (http://www.reuters.com) - June 3, 2009
These guys are getting hit hard. :( --Ed.
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.
Press told Congress last month in a letter the company would help dealerships losing their franchise agreements beyond the... http://www.reuters.com/article/newsOne/idUSTRE5521D220090603