[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.
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