Van Hollen Supports The Bipartisan Automobile Dealer Economic Rights Restoration Act Of 2009

Press Release

Today, Congressman Chris Van Hollen joined Congressmen Maffei and Kratovil as an original co-sponsor of the bipartisan Automobile Dealer Economic Rights Restoration Act of 2009. The legislation, introduced earlier today, will restore the economic rights of automobile dealers in order to protect jobs, workers, and small business owners.

"Our efforts to revitalize the auto industry in America must include a vibrant dealer network to sell and service first rate GM and Chrysler products," said Van Hollen. "These small businesses employ hundreds of thousands of people and are an integral part of local communities all across this nation. The legislation being introduced today by Congressmen Maffei and Kratovil will save jobs, protect the rights of small business owners, and help the U.S. auto industry and the economy get back on firm ground."

The Automobile Dealer Economic Rights Restoration Act of 2009 would do the following:

Restore the economic rights of General Motors and Chrysler car dealers as they existed prior to each company's bankruptcies.

Preserve General Motors and Chrysler car dealers' rights to recourse under state law.

At the request of an automobile dealer, require General Motors and Chrysler to reinstate franchise agreements in effect prior to each company's bankruptcies.

Make clear that 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 builds on the bi-partisan letter signed by over 100 members of Congress, including Congressmen Chris Van Hollen and Steny Hoyer, which will go to the President today and a letter that was mailed on May 19th to Steven Rattner, Senior Advisor on Auto Issues at the Treasury Department.

Source