House Approves Compromise for GM, Chrysler Dealers
The House has approved a compromise plan to give General Motors and Chrysler dealers an appeals process to keep their showrooms open, reported The Associated Press.
A $1.1 trillion spending bill approved Thursday includes provisions to give 789 Chrysler dealers closed in June and more than 1,350 GM dealers expected to be shut down next year an opportunity to challenge the automakers' decisions.
GM and Chrysler have attempted to shed dealerships as part of their government-led bankruptcies. But the moves have riled up members of Congress, who have received numerous complaints from dealers being shut down.
"We need to make sure that the companies give a fair consideration to dealers that have put a lot of their time, sometimes generations, money, effort and talent into building their dealerships," said House Majority Leader Steny Hoyer, D-Md.
General Motors Co. and Chrysler Group LLC said last week they would reconsider decisions to close the dealers as part of a compromise plan including face-to-face reviews with dealerships and binding arbitration for dealers who challenge the decisions.
But dealers and key lawmakers pushed back, saying the GM and Chrysler approaches wouldn't do enough. The compromise developed by Hoyer and Dick Durbin of Illinois, the Senate majority whip, requires the arbitration panels to consider a number of circumstances, giving some car dealerships a better chance of surviving.
The arbiter would weigh issues such as the economic interests of the terminated dealer, the company and the public, the dealer's profitability during the past four years and conditions that could have led to a poor sales performance, including natural disasters and a poor local economy.
"We do not want to hurt the auto manufacturers in their restructuring efforts moving forward, but auto dealers are a big part of our local communities and national economy, and they should be treated fairly," said Rep. Dan Maffei, D-N.Y.
The spending plan needs to be approved by the Senate. Durbin said he does not expect the dealer provisions to be changed.
GM is working on a "resolution that balances the interests of GM and its dealers," the company said in a statement.
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 →