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

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 →
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 →
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 →
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 →
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 →
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 →
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 →
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 →