Alabama auto dealers rejected by Chrysler LLC and General Motors Corp. could see their franchise agreements restored if U.S. Representative Artur Davis has his way. Davis, D-Birmingham, was among 14 members of Congress who introduced H.R. Bill 2743, called the Automobile Dealer Economic Restoration Act. The bill aims to force GM and Chrysler to restore franchise agreements that existed with dealers prior to each automaker’s bankruptcy filing. He said:
This may be the dealers’ last hope. Our hope is that we can get other members of Congress and the Obama Administration to support our efforts to save these dealers and preserve jobs. GM and Chrysler’s assumption is that they have too many dealerships and thus they take business away from each other, costing them money. The arbitrary closing of thousands of dealerships will not save GM and Chrysler money, but will cause the loss of potentially a hundred thousand jobs including some in Alabama.
The bill appears to have strong bipartisan support and the backing of automobile dealer groups across the country. Among its provisions, the legislation aims to preserve affected GM and Chrysler dealers’ franchise agreements as protected by state laws. Hopefully, the bill will pass and become law.
Source: Birmingham News
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