[Congressional Record Volume 156, Number 76 (Wednesday, May 19, 2010)]
[House]
[Pages H3601-H3602]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RECOGNIZING SIGNIFICANT CONTRIBUTIONS OF U.S. AUTOMOBILE DEALERSHIPS
Mrs. CAPPS. Madam Speaker, I move to suspend the rules and agree to
the resolution (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, as amended.
The Clerk read the title of the resolution.
The text of the resolution is as follows:
H. Res. 713
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;
(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 in the
public interest and necessary to increase the competitiveness
of automobile manufacturers;
Whereas the economic downturn put thousands of jobs at
risk, including those at automobile dealerships and
automobile manufacturers; 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
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
consideration to obtain a dealership franchise when the
automobile market rebounds and stabilizes.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
California (Mrs. Capps) and the gentleman from Pennsylvania (Mr. Pitts)
each will control 20 minutes.
The Chair recognizes the gentlewoman from California.
General Leave
Mrs. CAPPS. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Mrs. CAPPS. Madam Speaker, I am pleased to yield such time as he may
consume to the gentleman from Texas (Mr. Al Green).
[[Page H3602]]
Mr. AL GREEN of Texas. Madam Speaker, I thank the managing Member for
yielding me this time, and I also thank the Member who is managing for
the other side for allowing this important piece of legislation to come
to the floor. I want to thank Representative Hensarling who is not here
today. He is in Financial Services, and we have a hearing there that is
exceedingly important; but for that, I am confident he would be here.
He and I serve on the committee together.
Representative Hensarling and I have been working on this resolution
for some time. For us it has become a means by which we not only
developed what I believe to be a good piece of legislation for the
House, but also we have developed a good relationship as a result of
working together. This is truly a bipartisan piece of legislation. We
have 107 cosponsors from both sides of the aisle.
I also would like to thank Representative John Dingell for helping us
with this piece of legislation. He, at a crucial time, stepped forward
to help us move the legislation such that we are now on the floor with
it. I would also mention the staff members from Congressman
Hensarling's office and from my office, my staff, I thank you for what
you have done, Representative Dingell's staff, and all of the persons
who have been associated with this piece of legislation, especially
Representative Capps because I thank you for helping us get it to the
floor as well.
This resolution, H. Res. 713, does two things: it recognizes the
significant contributions of the auto dealerships; and it expresses the
sense of the House of Representatives that dealerships which were
successful, and I highlight and underline successful, dealerships that
were successful and are being closed, some have been closed because of
the economic crisis, that these dealerships be given consideration when
the market rebounds and we start to bring on new auto dealerships. It
is an opportunity for consideration.
With these two things in mind, I would share these thoughts: one,
that the auto dealerships are the face of the auto industry within our
various communities. As the face of the industry, they do more than
simply sell cars, which is a good thing to do. Selling cars promotes
growth and jobs, and helps us have people who are employed, but they do
more than this. They also engage in being good corporate citizens,
which means that they allow their largess to be shared by various not-
for-profit organizations in the community, various community
organizations that are involved at the grass-roots level in
communities. For example, the Little League baseball teams will often
be sponsored by auto dealerships. Other small, but significant,
organizations in our communities benefit from these auto dealerships.
They are across the length and breadth of the community in large
cities and small towns. They make it possible for us to experience the
opportunity of having largess that we would not ordinarily have, and I
will tell you that that largess is being sorely missed at this time of
economic crisis. So we want to get them back. We want to get them back
online because they are good corporate citizens.
My next point, 20,000 independently owned dealerships exist across
the country--maybe a little more, maybe a little less, depending on who
is counting and how you count--employing about 900,000 people, new car
dealerships alone. These 900,000 jobs are jobs that our country
benefits from greatly, and we have missed many of the jobs because of
the dealerships going offline. We want to see these dealerships give
the community the job base it has enjoyed by virtue of these many
persons who were trained to do various and sundry things, giving these
jobs back to the community.
Bringing them back will be an important part of these dealerships
coming back online as a result of the rebound in the economy. In 2008,
there was about $650 billion that we can call revenue generated from
the dealerships. They are truly small businesses at their best, and
some of them large businesses because of just the sheer amount of
revenue that they generate. But they are small businesses that benefit
greatly from what we are trying to do in Financial Services today, but
they are also small businesses that cause a community to benefit
greatly because of what they do in the various communities wherein they
are located.
I would simply remind us that as we vote on this, please, dear
friends, give thought to your community; give thought to the fact that
this is a small business that brings jobs back to the community; give
thought to the fact that these corporations are good corporate
citizens, for the most part; that they are part of the fiber and the
fabric of the communities; that they help the Little League baseball
teams, the Girl Scouts and Boy Scouts, all of these organizations that
benefit from their largess; and give some thought to the fact that but
for them, many of our communities would not be as vibrant as they are.
In fact, many of our communities are not as vibrant as they were
because we have lost some of these various small businesses, these auto
dealerships.
I beg all of my colleagues, please support this resolution. It
encourages us to do the right thing, and that is give these dealerships
that were successful that went offline the opportunity, not because of
some fault of their own but because of some economic crisis that they
had little control over. In fact, no control over for the most part.
Mr. PITTS. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise in support of H. Res. 713, expressing the sense
of the House of Representatives that the automobile dealers whose
franchises were terminated through no fault of their own, be given an
opportunity of first consideration once the auto market rebounds and
stabilizes.
Dealerships play an important function in the distribution model. It
was the economic downturn that exacerbated the already slowing
automobile sales. Some dealers assert that they had sufficient sales
and should not have been marked for closure. Despite their importance
to manufacturers, the fact that they were well-run businesses and the
Federal Government's bailout of GM and Chrysler, to the tune of $80
billion, many franchises were taken away from these dealerships. Jobs
supported by these dealerships were eliminated, and this lost income
continues to plague American families.
In addition, the lost tax revenue and absence of those dealerships
that played an important civic role in their communities has further
strained local communities. When the auto market recovers, these
dealerships should be given an opportunity to reclaim their franchises
as manufacturers expand their distribution channels.
I would like to commend Congressman Green and Congressman Hensarling
for their leadership on this issue. I support the resolution and urge
my colleagues to support it.
Madam Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mrs. CAPPS. Madam Speaker, I would like to make the point that
several minor changes were made in House Resolution 713 in order to
clarify that the focus of the resolution is on automobile dealerships
and not on automobile manufacturers.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from California (Mrs. Capps) that the House suspend the
rules and agree to the resolution, H. Res. 713, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the resolution, as amended, was agreed to.
The title of the resolution was amended so as to read: ``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 be given consideration to enter
the automobile market once it rebounds and stabilizes.''.
A motion to reconsider was laid on the table.
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