agent Entrepreneur logo
MenuMENU
SearchSEARCH

Congressman Wants Obama to Suspend GM Dealer Cuts

October 19, 2010
2 min to read



WASHINGTON - The Obama administration should ask General Motors to suspend the 500 dealership terminations it plans Oct. 31 until a federal investigation of dealer cuts is completed, a U.S. congressman said.


Rep. Steven LaTourette, R-Ohio, said the investigative findings of the Special Inspector General for the U.S. Troubled Asset Relief Program could come too late for the GM dealerships scheduled to be closed, reported Automotive News.

Ad Loading...


The inspector general's office, headed by former federal prosecutor Neil Barofsky, has not said when it would complete its investigation of dealer cuts by the administration, GM and Chrysler.


“It's like someone's in prison and the DNA that would prove his innocence is hidden,” LaTourette said in a phone interview today. “Once a dealer is shut down, it's difficult if not impossible for him to get back on his feet.”


LaTourette's advocacy for auto dealers has proven effective in the House. Last year he introduced a bill to reverse more than 2,000 dealer terminations during GM's and Chrysler's bankruptcies.


LaTourette's bill passed the House but stalled in the Senate. It was a precursor to the dealer-arbitration bill that eventually became law in December.


He said he plans to join with Cleveland-area dealers soon to call formally for administration action. The U.S. Treasury's ownership of 61 percent of GM enables it to secure the automaker's cooperation, the lawmaker said.

Ad Loading...


GM spokesman Greg Martin declined comment. Treasury spokesmen did not respond to requests for comment.


About 500 GM dealerships that were tagged for termination last year will see their sales and service agreements expire Oct. 31, GM spokeswoman Ryndee Carney said.


These dealerships will not be allowed to sell new GM vehicles or perform warranty service, she said.


There were 5,023 active GM dealerships as of Sept. 30, Carney said.


More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...