[Congressional Record Volume 155, Number 112 (Thursday, July 23, 2009)]
[Senate]
[Page S8030]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       AUTOMOBILE DEALER ECONOMIC RIGHTS RESTORATION ACT OF 2009

  Mr. ROCKEFELLER. Mr. President, I take this opportunity to discuss 
the recent decisions by General Motors and Chrysler to eliminate 
thousands of automobile franchises across America. This is an extremely 
important issue: GM's and Chrysler's actions have had a negative impact 
on small businesses, employees, consumers, and communities in every 
corner of my State, West Virginia.
  Although I do not question the automakers' need to restructure their 
companies and become financially viable, I do have serious concerns 
about the way they have handled these dealership terminations. Neither 
company has been fully transparent in explaining why they needed to 
terminate dealerships or how they decided which ones to eliminate. 
Neither company has provided dealers with an adequate opportunity to 
fully appeal their terminations--in fact, Chrysler has not established 
an appeals process at all. And though both companies claim that dealers 
will be fairly compensated for vehicles, parts, and specialty tools, 
the reports I continue to receive from terminated Chrysler dealers is 
that they still have hundreds of thousands of dollars in parts and 
specialty tools and many have received ``no response at all'' from 
Chrysler to their ``numerous requests for assistance.''
  I also continue to hear the argument that ``this is how things happen 
in the normal bankruptcy process.'' But GM's and Chrysler's 
bankruptcies are anything but normal. How many bankruptcies are funded 
with billions of taxpayer dollars? How many bankruptcies result in the 
government obtaining a majority interest in the restructured companies? 
Under these circumstances, the thousands of small business owners whose 
franchise agreements have been summarily revoked deserve more from the 
companies that would not exist but for taxpayer support.
  That is why I have been fighting from the beginning to find a better 
resolution for the thousands of terminated auto dealers throughout this 
country. And although we have seen improvements on behalf of dealers so 
far, I must admit that I am thoroughly disappointed that GM and 
Chrysler have refused to do more. For that reason, I am cosponsoring S. 
1304, the Automobile Dealer Economic Rights Restoration Act of 2009.
  I fully understand the serious concerns that have been raised about 
this bill. But the reality is that GM and Chrysler need to understand 
that they cannot ignore repeated requests by Congress and the American 
people to treat terminated dealers fairly. It is my hope that by 
cosponsoring this bill, I can help the automakers better appreciate 
that very important point and ultimately come to the table. They should 
work with Congress and the dealers on a reasonable resolution--one that 
provides dealers with fair compensation and a meaningful opportunity to 
challenge their terminations. That is what the people of West Virginia 
and America expect, and that is what the terminated dealers deserve.

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