[Congressional Record Volume 156, Number 62 (Thursday, April 29, 2010)]
[House]
[Pages H3061-H3062]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          CHRYSLER DEALERSHIPS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Illinois (Mr. Shimkus) is recognized for 5 minutes.
  Mr. SHIMKUS. I'd like to read a letter from a former Chrysler dealer 
in my district: ``Dear Congressman, I'd like to thank you for 
cosponsoring H.R. 2743, the Automobile Dealers Economic Rights 
Restoration Act of 2009, and H.R. 3179, the Financial Services and 
Government Appropriations Act for Fiscal Year 2010.
  ``The letter I received from you, dated August 7, 2009, was 
appreciated. The H.R. 3288 bill has no doubt done a great deal of good 
for a lot of GM and Chrysler dealers. However, the bill did not address 
the dealerships that lost everything and has no possible way of going 
back into business.
  ``When Chrysler informed me on May 14, 2009, that my franchise was 
going to be terminated effective at the close of business on June 9, 
2009, I had 263 new Chrysler vehicles in inventory and $412,000 of 
Chrysler parts. In their letter they stated: `We intend to maintain 
business as usual and after rejection, we want to work with you to 
assist in the redistribution of new vehicles and parts to ease the 
burden on you.'
  ``They did nothing except lie to Congress. Chrysler went out of their 
way to make sure I could not stay in business. The week of May 18, they 
sent

[[Page H3062]]

letters to all my customers informing them that I could not be a 
Chrysler dealer as of June 10, 2009, and if they need service work to 
take their vehicles to another dealership. At the time I was 
terminated, my dealership was in the top 5 percent of sales; my 
customer satisfaction was one of the highest Chrysler had. In 2006, my 
parts and service managers both were awarded Chrysler Managers of the 
Year and I was runner-up for Dealer of the Year.
  ``I could not believe I was being terminated. When I tried to call 
and inquire as to why I was terminated, no one would answer my call. To 
this day, no one has explained why I lost my franchise. By the close of 
business on June 9, the dealership had sold all but 186 vehicles at 
retail and reduced the parts inventory to $352,000. When I called 
Chrysler about what I should do with the leftover new vehicles, I was 
told that they had other issues to deal with and would get back to me 
in a few months. They also stated that I could not retain the vehicles 
as new, and the vehicles would not qualify for any of the factory 
rebates or factory warranties.

                              {time}  1915

  ``I was forced to sell all of the 186 vehicles to other Chrysler 
dealers at $3,000 to $4,000 loss per vehicle, which amounted to a loss 
of $700,000 of cash. When I tried to sell my Chrysler parts to other 
dealers, they received phone calls and were told if they need parts to 
call Chrysler, not Dave Croft Motors.''
  Madam Speaker, this is just the first page of three that I am 
submitting for the Record which talks about, really, the theft of 
personal-property in the government bailouts of automobile companies. 
This is an individual family business that has existed for decades that 
was destroyed, abused, and left with nothing.
  He ends with, ``I will keep telling my story to anyone who will 
listen. I hope that some kind of law will be put in place so this 
cannot happen to another business in the future. I still have to tell 
myself that I live in America and not in China.''
  What he experienced was the government intervention and taking over 
of personal, private wealth in this country. And it's an indication of 
a sad direction this country has taken when it thwarts the capitalist 
model of raising capital, taking a risk, and either benefiting from 
that risk or losing everything.
  When we get involved in bailing out Wall Street banks, and then we 
don't bail out small Main Street businesses, what we have here is a 
discrepancy. If we would allow the market to work, it's not 
compassionate. It's very, very tough, but it is the best way to turn 
around the economy. Otherwise, small businesses around this country 
will continue to get rolled over by Big Business and Big Government.
  And with that, I would like to submit the entire letter for the 
Record.


                                                   Dave Croft,

                                  Edwardsville, IL, April 5, 2010.
     Congressman John M. Shimkus,
     Regency Centre,
     Collinsville, IL.
       Dear Congressman: I would like to thank you for 
     cosponsoring H.R. 2743 ``The Automobile Dealers Economic 
     Rights Restoration Act of 2009'' and H.R. 3179, ``The 
     Financial Services and General Government Appropriations Act 
     for FY 2010.'' The letter I received from you dated August 7, 
     2009, was appreciated. The H.R. 3288 bill has no doubt done a 
     great deal of good for a lot of the GM and Chrysler dealers. 
     However, the bill did not address the dealerships that lost 
     everything and has no possible way of going back in business.
       When Chrysler informed me on May 14th, 2009 that my 
     franchise was going to be terminated effective at the close 
     of business on June 9th, 2009, I had 263 new Chrysler 
     vehicles in inventory and $412,000 of Chrysler parts. In 
     their letter they stated ``We intend to maintain ``business 
     as usual'' and ``After rejection, we want to work with you to 
     assist in the redistribution of new vehicles and parts to 
     ease the burden on you''. They did nothing except lie to 
     Congress. Chrysler went out of their way to make sure I could 
     not stay in business. The week of May 18th they sent letters 
     to all my customers informing them that I would not be a 
     Chrysler dealer as of 6/10/2009 and if they need service work 
     to take their vehicles to Cassens & Sons in Edwardsville.
       At the time I was terminated my dealership was in the top 
     5% of sales, my customer satisfaction was one of the highest 
     Chrysler had. In 2006 my Parts & Service managers both were 
     awarded Chrysler's managers of the year and I was runner-up 
     for dealer of the year. I could not believe I was being 
     terminated. When I tried to call to inquire as to why I was 
     terminated, no one would answer my call. To this day no one 
     has explained why I lost my franchise!!!
       By the close of business on June 9th, the dealership had 
     sold all but 186 vehicles at retail and reduced the parts 
     inventory to $352,000. When I called Chrysler about what I 
     should do with the left over new vehicles, I was told they 
     had other issues to deal with and would get back to me in a 
     few months. They also stated that I could not retail the 
     vehicles as new and the vehicles would not qualify for any of 
     the factory rebates or factory warranty. I was forced to sell 
     all of the 186 vehicles to other Chrysler dealers at $3,000 
     to $4,000 lost per vehicle which amounted to a loss of 
     $700,000 dollars of cash. When I tried to sell my Chrysler 
     parts to other dealers, they received phone calls and were 
     told if they need parts to call Chrysler, not Dave Croft 
     Motors.
       In 2006 the dealership did $47,251,683 in sales and 
     employed 55 families. In 2007 we had $55,894,301 in sales and 
     employed 53 families. Just think of the tax dollars the State 
     of Illinois, County of Madison and the City of Collinsville 
     was collecting from my dealership!
       After wholesaling my new car inventory to other Chrysler 
     dealers and selling most of the parts for 15% on the dollar, 
     it was the end of July and the dealership was out of cash. I 
     did everything I could to keep the dealership open but 
     without a franchise it was impossible to pay the overhead. I 
     had to let most of my employees go. On January 19th, 2010 I 
     had to file Chapter 7 bankruptcy. I was forced, to sell the 
     building, which I built in 1979, to pay my creditors. My 
     family and I lost everything we worked for the last 34 years.
       It is still hard for me to believe that this could happen 
     in America. I was always under the belief that my Congress 
     would make sure that nothing like this could ever happen to 
     anyone who worked as hard as my family did. I could 
     understand if Chrysler file bankruptcy and did not receive my 
     tax dollars to keep them in business, and then my government 
     gave 15% to Fiat who put no money into the deal--we the 
     people are going to lose billions of dollars on Chrysler! I 
     just look at Chrysler's sales! Anyone can see that the 
     government will have to give them more money. Crazy!!
       After Congress passed the Automobile Dealers Economic 
     Rights Restoration Act, 400 of the 798 dealers filed for 
     arbitration, I being one. Chrysler reviewed the 400 who had 
     requested arbitration and decided that 50 of the terminated 
     dealers should NOT have been terminated and gave them a 
     letter of intent (gave them back their franchise) without 
     going through the arbitration process, I am one of the 50 
     dealers. After losing my building, all of my parts, all of my 
     equipment, have no cash and they tell me sorry you should not 
     have been terminated--give me a break, and, oh yes, Chrysler 
     gave all my customers to other dealers. What do I do now? I 
     was making a profit when my dealership was terminated and 
     believe I would still be a strong dealer today if Chrysler 
     had not terminated my franchise. This has been a nightmare 
     for my customers.
       I know that when you cosponsored the above bill that you 
     had great intentions. You have to know that Chrysler will not 
     deal in good faith. They will make the requirements to get 
     reinstate so unreal that very few dealers will be able to 
     meet their requirements. What about dealers like myself who 
     cannot go back into business? It does nothing for me. At one 
     time NADA was trying to get compensation paid to the dealers 
     that lost their franchise: $3000 dollars for each unit 
     retailed in one of the following years, 2006, 2007 or 2008, 
     and purchase back all the Chrysler parts and special tools. 
     This would only be a fraction of what my family has lost, but 
     we have nothing now. Starting over at the age of 65 will be 
     very hard and I will have a hard time putting any trust in 
     the laws of our country.
       I will keep telling my story to anyone who will listen. I 
     hope that some kind of law will be put in place so this 
     cannot happen to another business in the future. I still have 
     to tell myself that I live in America and not in China.
     Dave Croft.

                          ____________________