Maffei Leads Bi-Partisan Coalition Of Senators, Representatives And More Than 100 Auto Dealers To Discuss Progress Of Economic Rights Restoration Act

Press Release

Maffei Leads Bi-Partisan Coalition Of Senators, Representatives And More Than 100 Auto Dealers To Discuss Progress Of Economic Rights Restoration Act

Today Leader Hoyer, Rep. Maffei, Senator Grassley, Senator Cardin, Rep. Van Hollen, Rep. Kratovil, Rep. Giffords, Rep. Bartlett, Rep. Sutton and Rep. LaTourette joined with more than 100 auto dealers from across the country to discuss the progress of the Automobile Dealer Economic Rights Restoration Act of 2009 (HR 2743). To date, the Act has more than 240 co-sponsors in the House, and was introduced by Congressman Maffei last month. Senator Grassley has introduced a companion bill in the Senate.

The momentum of this legislation is a testament to the importance of car dealerships in communities across the country. In a time of serious economic recession, it makes little sense to force closure of profitable small businesses that employ thousands of people in good paying jobs. Fundamentally, it is critical to maintain transparency and fairness in the process of restructuring American car manufacturers.

The Automobile Dealer Economic Rights Restoration Act of 2009 does this by:

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.

House Majority Leader Steny H. Hoyer (D-MD) said: "We all want to see a fair and transparent process that both protects American jobs and helps prepare the auto companies for a return to competitiveness. I am hopeful that an agreement can be reached that is fair to the companies, the dealers, their employees, and the taxpayers."

Congressman Chris Van Hollen (D-MD) said: "Standing here with my colleagues and auto dealers from across the country, I'm proud to say the Automobile Dealers Economic Rights Restoration Act has 242 bi-partisan cosponsors and a bi-partisan Senate companion bill. Clearly, this effort to re-open profitable dealerships and restore basic fairness to this process has tremendous momentum. Auto Dealers are on the frontlines in the fight to restore the U.S. auto industry to the once-dominant position it held. We have an opportunity to save the auto industry and protect the rights of auto dealers in the process, and I look forward to working with this broad coalition to make that happen."

Rep. Dan Maffei (D-NY), who introduced HR 2743, said: "Since the first letter I sent to the Auto Task Force on this matter in May, my goal has always been to protect small businesses. We need to ensure transparency and fairness as our auto manufacturers move forward with their plans-- and forced, arbitrary closure of profitable business strikes many of, across the country, as unfair."

Senator Chuck Grassley (R-IA) said: "The government has bent over backwards to save the big auto and financial corporations. But, it has failed to help the small businesses and workers in Middle America. With rising unemployment it seems an unfortunate time to be cutting jobs throughout America. So, we have to make sure the little guys are looked after and their rights are protected."

Senator Ben Cardin (D-MD) said: "Our constituents are rightly concerned about this latest economic threat to their communities, which is why we all want to understand the reason General Motors and Chrysler took such quick action to cut off dealerships that cost them little or no money to maintain. The end-goal is clear: restore the viability of the U.S. auto industry. But we should not and cannot allow the arbitrary action of the automakers to skirt the law and void legitimate contracts with auto dealers."

Rep. Frank Kratovil (D- MD)said: "Momentum for this legislation is building because our colleagues are seeing firsthand the impact that these dealership closures will have in their own communities, and so they understand the need for fairness in this process. Having the auto dealers here with us today sends the right message that this is fundamentally about fairness. Especially in these tough economic times, we ought to be giving small businesses every possible opportunity to stay open, and leave it up to the marketplace to sort out which dealerships will survive and which will not."

Rep. Steven C. LaTourette (R-OH) , who specifically thank Rep Maffei at the press conference for pushing forward his legislation, said: "Ohio has been devastated by dealer losses. Only two states had more Chrysler dealers fold, and only one state will have more GM closures. You have to travel far and wide to even find a Cadillac dealer in my state anymore. These bankruptcies have been job and dream killers."

Rep. Roscoe Bartlett (R-MD) said: "This is part of a bipartisan effort by the Congress to ensure the Rule of Law prevails to protect the private property rights of auto dealers. The auto dealerships targeted for closing are all independently-owned and operated small businesses and pillars of our communities. These men and women deserve better than the capricious closings by Chrysler and specious claims that eliminating or alienating their best customers will help Chrysler or GM, our economy, consumers or taxpayers."