Foster Continues To Stand Up For Area Auto Dealers

Press Release

Foster Continues To Stand Up For Area Auto Dealers

As part of his continued effort to ensure fair treatment of area auto dealers, Congressman Bill Foster (IL-14) became a co-sponsor of H.R. 2743, the Automobile Dealer Economic Restoration Act today, legislation that is co-sponsored by a group of bipartisan lawmakers, including Rep. Don Manzullo (IL-16).

"Our area auto dealerships provide hundreds of good paying jobs and benefits to families in the 14th District, and forced closures of these businesses would hurt our local economy," said Foster. "GM and Chrysler have announced dealership closures in an apparently arbitrary fashion - a move that came without any transparency or an explanation as to why some dealerships would close and some would remain open."

GM and Chrysler previously notified dealers that their relationship was ending, without an explanation as to why the termination was necessary, leaving dealers with millions of dollars invested in car stock, no options for consolidation and little leverage for liquidation.

H.R. 2743 restores the economic rights of GM and Chrysler car dealers as they existed prior to each company's bankruptcies, preserves GM and Chrysler car dealers' rights to recourse under state law and requires GM and Chrysler to reinstate franchise agreements in effect prior to each company's bankruptcies at the request of an auto dealer. The legislation is not intended to make null and void the court-ordered transfer of assets from Chrysler LLC to New CarCo Acquisition LLC or the transfer of General Motors assets that could be approved by a court after the introduction of the Act.

"This legislation would ensure that the contractual rights of individual auto dealers are preserved, meaning that dealers who believe their businesses are economically viable can remain open, saving jobs in our area," said Foster. "I am proud to stand up for area auto dealers, and am working with Democrats and Republicans to find common-sense solutions that will save jobs."

Foster has previously sent letters to President Obama and Steve Rattner, head of the U.S. Treasury's auto task force, asking that the Administration reconsider the forced closure of dealerships across the country in favor of a more flexible and transparent process that would allow for market forces to consolidate dealerships.

This legislation is endorsed by National Automobile Dealers Association (NADA) and American International Automobile Dealers Association (AIADA).

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