Ex-Obama Car Czar Blasts House Leader, Rejected Dealers over Lobbying
WASHINGTON - A former Obama administration official takes potshots in his new book at House Majority Leader Steny Hoyer, a fellow Democrat who led congressional efforts to reinstate dealerships terminated by General Motors and Chrysler, reported Automotive News.
Steven Rattner, who headed the administration’s auto task force that shepherded GM and Chrysler through bankruptcy, also takes aim at dealers Jack Fitzgerald and Tamara Darvish.
The Maryland dealers are two of the three leaders of the Committee to Restore Dealer Rights, a group of rejected GM and Chrysler dealers that joined forces with Hoyer to help get a dealer-arbitration law enacted last year.
“When Congress did try to intervene, as with auto dealer closures, the result was an enormous, pointless distraction for the two companies at a critical time,” says Rattner in his book, Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry. The book went on sale Monday.
Following numerous meetings with Fitzgerald and Darvish last year, Hoyer teamed up with Rep. Chris Van Hollen, D-Md., to draft and steer the dealer-arbitration bill through the House.
It was passed by the Senate a few days later and signed by President Obama in December.
Rattner expresses particular pique with Hoyer, whose district is in Maryland, for lobbying him on Fitzgerald’s and Darvish’s behalf.
“I was mystified that the House majority leader chose to devote so much time to this,” Rattner writes. Hoyer, the No. 2 Democrat in the House, “wasted so much time browbeating the task force about a couple of Maryland car dealers,” he says.
A Hoyer spokeswoman defended the lawmaker’s actions.
He “worked hard to ensure that there was a fair process in place, which was needed after dealers were closed and tens of thousands of jobs were cut amid serious questions about the true economic benefit,” Hoyer spokeswoman Katie Grant said.
She cited a July report by an independent government auditor that faulted the auto task force for seeking dealer cuts at a time of economic hardship and without rigorous analysis of their impact on the automakers.
Referring to the dealer arbitrations, Grant said the audit “confirmed (Hoyer’s) belief that such a process was necessary.”
During arbitration, GM reversed course on more than 700 of the 2,000 dealerships targeted for closure during its bankruptcy proceeding last year. These stores were offered letters of intent by the company after Ed Whitacre became CEO.
Chrysler stood by its decision to close 789 stores during bankruptcy and battled dealers in arbitration. Only 29 of these shuttered stores are on track for reinstatement.
More Industry

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 →
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 →
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 →
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 →
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 →
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 →
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 →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
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 →
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 →