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

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 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
Industry•by Hannah Mitchell•September 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 →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 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...