[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 713 Introduced in House (IH)]

111th CONGRESS
  1st Session
H. RES. 713

 Recognizing the significant contributions of United States automobile 
 dealerships, and expressing the sense of the House of Representatives 
  that in the interest of equity, automobile dealers whose franchises 
    have been terminated through no fault of their own be given an 
 opportunity of first consideration once the auto market rebounds and 
                              stabilizes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2009

 Mr. Al Green of Texas (for himself and Mr. Hensarling) submitted the 
following resolution; which was referred to the Committee on Energy and 
                                Commerce

_______________________________________________________________________

                               RESOLUTION


 
 Recognizing the significant contributions of United States automobile 
 dealerships, and expressing the sense of the House of Representatives 
  that in the interest of equity, automobile dealers whose franchises 
    have been terminated through no fault of their own be given an 
 opportunity of first consideration once the auto market rebounds and 
                              stabilizes.

Whereas auto dealers have deep roots in local communities and have helped 
        manufacturers with long-term customer relationships that create brand 
        loyalty and maintain customer convenience;
Whereas dealerships across the country provide jobs, give direct investments to 
        local economies, and supply tax revenue to State and local governments;
Whereas virtually all new cars and light trucks bought in the United States are 
        sold through franchised dealers;
Whereas dealers are independently owned, and combined, represent the largest 
        retail business in the United States, with approximately 
        $693,000,000,000 in revenues in 2007;
Whereas auto dealers are significant employers in local communities across the 
        country;
Whereas franchised dealers employ over 1,100,000 people, comprise nearly 20 
        percent of all retail sales in the United States, and, in total, pay 
        billions annually in state and local taxes;
Whereas the Nation's 20,700 independent franchised new car dealerships comprise 
        an industry that is largely privately held, with private ownership 
        accounting for 92 percent of the market;
Whereas the franchised dealership system in the United States is the independent 
        link between the manufacturer's assembly line and the consumer and its 
        functions include, but are not limited, to the following--

    (1) selling the product and providing information for consumers;

    (2) holding vehicle and parts inventory for a push oriented 
manufacturing system;

    (3) performing service and providing parts to fulfill manufacturer 
warranty obligations;

    (4) handling product safety recalls;

    (5) facilitating the exchange of used vehicles; and

    (6) arranging financing for consumers;

Whereas some restructuring of dealer networks was necessary to increase domestic 
        competitiveness, certain United States auto manufacturers' decisions to 
        close a combined 1,900 automobile dealerships, many of which were 
        successful, put thousands of jobs at risk; and
Whereas auto dealers will play a key role in any effort to revive the United 
        States auto industry: Now, therefore, be it
    Resolved, That--
            (1) the House of Representatives recognizes the significant 
        contributions of United States automobile dealerships; and
            (2) it is the sense of the House of Representatives that a 
        quantifiable number of automobile dealerships which have been 
        successful and are being closed not of their own doing, but 
        instead as a function of the auto market as a whole, should be 
        given an opportunity to obtain a dealership franchise when auto 
        manufacturers seek new partners to open future dealerships in 
        their respective geographic areas.
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