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H.R. 2743, The Automobile Dealer Economic Rights Restoration Act of 2009 (50 comments ↓)

H.R. 2743 would restore the economic rights of automobile dealers.

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From the Blog

Save the Auto Dealers!

Two bills introduced in Congress this week are apparently meant to save automobile dealers from hardship in the auto industry. H.R. 2743 and H.R. 2750 both say they would “restore the economic rights” of automobile dealers. What’s an ...

Visitor Comments Comments Feed for This Bill

Lew Waters

June 9, 2009, 2:53pm (report abuse)

I urge support of this legislation. Losing so many dealerships can only hurt local economies. Dealers support and donate much to events such as The March of Dimes, scholarships to local Colleges, Teacher of the Year and much more.

Each dealer employs many people and they support local businesses as well.

Losing these dealers in this number will stop the support, add to unempoyment and cease much needed community donations.

Support HR 2743.

Andy Claydon

June 9, 2009, 5:46pm (report abuse)

Manufacturers have encouraged others to believe that 'over-dealering' is their biggest problem, and that removing 25% of their dealers will somehow help them. It isn't; it won't. Each dealer stands on his own, invests his own money, and is the carmaker's customer, buying tools, parts, cars, training, IT, brochures etc. He in turn makes customers for the manufacturer in his community. It is a self-regulating relationship - if the dealer is inefficient, he goes out of business... no-one bails him out. With the bankruptcies of Chrysler and GM, dealers are being closed for a variety of reasons, and in many cases their franchises taken and awarded to others. These dealers have invested and risk everything they ever had, as well as money they have had to borrow.

GM and Chrysler have been bailed out. The banks, now wary of lending to dealers, are bailed. The dealer stands alone, ready to lose all because others made dumb decisions, and forgot his loyalty to them. This bill must pass!

Jerry Clapp

June 11, 2009, 4:30pm (report abuse)

I have been a GM dealer and Volkswagen dealer and can testify that the cost to service a dealership by the manufacturer is minimal. We write checks to the manufacturer for many items they claim to be a cost. We are a source of money to them and not an expense. I listened to Chryler's man in the Senate hearing claim dealer expense as being "reserch and developement of products" and a dollar amount of over a billion described a lost opportunity in having "under performing" dealers that could and would be replaced by "high performing" dealers. This is all speculation and they may be suprised to find they had it better than they thought. In business for 74 years and this has not changed. Bill should and must pass!

MarciaAndrews

June 11, 2009, 11:05pm (report abuse)

My husband has been in the same Chevrolet business as Gen. Mgr. and owner for 45 years. He has been a loyal customer of Chevrolet's and made them money. By customer I mean buying their product to retail to the public. No cost to Chevrolet. By the way we received a termination letter and just today also received a special tool of which we are required to purchase from Chevrolet along with a bill for $500.00. Please tell me what we need with a $500.00 tool when we are so unjustly being forced to close. How can a piece of paper with a little black ink snuff your business out with no explanation as to why? For the sake of all dealers who have invested so much, employees, and communities this bill must pass.

Chrysler Dealer

June 13, 2009, 1:55pm (report abuse)

My Chrysler dealership sells more new Chryslers than almost any other dealer in my state. I am not a poor performer and my customer satisfaction scores are high. Chrysler president Jim Press makes it seem that the Company is getting rid of poor performing, bad dealerships. This is not the case with many of the hard working dealers being closed. I am outraged and watching my family business of 42 years being stolen from me. I think its more about corporate greed and executive branch hubris than anything else. This law will be controversial, but it is essential to restore fairness. Our government is trying to do the right thing to improve our countrys standing abroad. It must pass this bill to restore its credibility with hard working men and women all around our great country.

Chrysler Tech

June 15, 2009, 12:17am (report abuse)

I have been a chrysler technician for 15yrs now and this very hard for me, My dealer was on the list and we are now officially a non chrysler dealer, just a used car dealer, Please support this bill, We have had 5star rating through service and sales in the south shore, mass area. People don't relize how much this will impact workers and people who buy cars. People are gonna have to travel far away to get to there nearest dealer for service, It's ridiculous, I dont know if chrysler knows this but we are in a recession alot of people are not buying new cars,I thought the the bail out was to help the economy and make jobs for the middle class well as usual it goes to the big companies, Chrysler and Gm and what do they do cut off dealers I cannot believe our president is alowing this to happen. This has taken a deep tole on me and my family because now i dont know if i will have a job in the next few weeks.This is america Do right thing support this bill, keep our jobs.

joe taxpayer

June 15, 2009, 12:29am (report abuse)

It is crazy to have the governement pay GM dealers $250 million to go away. They employ peoeple. People must stay employed or else everything bad happens- unemployment, mortage and credit card delinquencies, etc.

elmdodge

June 15, 2009, 8:43am (report abuse)

Plain and simple how can govt take an asset from person without at least giving him fair markt value. Why should dealers be the sacrifical lamb for mfg mismanagement. In the past 50 years the mfg could not legally make a case to take these well run profitable dealers out.

Duane F.Hill

June 15, 2009, 8:44am (report abuse)

Our government is for "WE THE PEOPLE" it doesnt seem so on this one! Forcing hard working American Businessman out of business for political gain is wrong.

The amount of families that will be displaced is in the hundreds of thousands! They are creating unemployment, not ending it.

Please support HR2743 it creates a level playing field for the American people (Dealership Employees). This will help force the government out of business enterprises.

gm dealer

June 15, 2009, 5:48pm (report abuse)

Our store sells over 600 new vehicles a year. As a BPG dealer in these times that puts us in the top 75 in the country. We have a "top box" over 89% and are 1/2 mile from the busiest highway in the midwest. Henderson LIED in his testimony, its as simple as that. Dealers targeted for closure all do not fit the "criteria for termination" they have discussed. If a dealer is profitable, has average to above average CSI and can make it through these tough times, it should be their choice----not a result of "the easy way out" in a bankruptcy.

DB33

June 16, 2009, 3:54pm (report abuse)

Look at the majority of the dealers that are being terminated. Would you be willing to buy a vehicle from them? Probably not, they don't provide the right image for you to feel good about buying from them. The product needs to be properly represented in the market in order to grow volume for the dealer and the factory. Tough times call for tough actions. The government is forcing it on the manufacturer and the dealers that, only looked out for themselves, are now being forced to respond. You can't go BK without pain being forced on the creditors and in this case the dealers. The alternative is chapter 7.

M Andrews

June 16, 2009, 10:47pm (report abuse)

I understand Mark LaNeve, Vice President of Sales, General Motors has sent participating dealers letters to contact their State Reps and ask they vote against HR2743. How low will he go? We must ask everyone to contact their Reps and ask they do support this bill. If I were a participating dealer I would never do this to a fellow dealer.

Chrysler Tech

June 17, 2009, 12:07am (report abuse)

DB33 i disagree look at these triple pack dealers they created, You and me and all the peopleare are now gonna pay alot more money for a new car, no more deals , high priced cars is what is happening here, Its called Monopoly, Big dealers getting there fingers into more dealer franshises, Example: My friend went to one of the Big dealers in my city that got our franshise, he asked the salesmen how much for this new Jeep Wrangler , Salesman's response well we can put u into this for 350.00 to 400.00 a month, again my buddy asked how much is the car, Sales man said well lets do a credit check, so guess what happens next he has good credit and now he is gonna overcharge my buddy becuase he cannot answer a simple question THE PRICE, Give me a break,Some of these buildings may not look great but i'll tell you this customers are loyal and still come to us why Because we show them exactly what is wrong with there car. They feel confortable talking with our dealerships that have been around.

Mary at Ford

June 17, 2009, 3:39pm (report abuse)

I have been in this industry since birth since my father is a mechanic. I personally have worked in a dealership for 21 years in almost every position imaginable. I am now a controller of a Ford store and though my dealership is obviously not on any list right now I am completely taken aback by what our government has forced. I know for a FACT that my dealership subsidizes the costs for the manufacturer - NOT THE OTHER WAY AROUND. We are their best customer. We are their ONLY customer. Poor performance results in the shutting down of dealerships through natural economies. Not because somebody threw a dart in a dartboard because that is certainly what seems to have happened to these dealers. They should be allowed to run a business in which they have spent millions of dollars and decades of time building without it being artbitrarily taken away. Please support this bill.

Lindsay Smith

June 18, 2009, 5:45pm (report abuse)

We need a new model of sales delivery for the automotive industry. it is time to see the dealership model change. no need to restore a broken process.
do not pass the bill

JahMike

June 19, 2009, 1:22pm (report abuse)

Welcome to the new America, kids!!! Change is what you voted for and exactly what you are getting... also, closed Deomcrat owned dealerships obviously did not donate enough cash to the Democratic party... Republican owned dealerships got slaughtered.

GM Dealer Employee

June 19, 2009, 2:58pm (report abuse)

It is unfortunate that many people do not know the story about dealers. Dealers do not cost GM or Chrysler money to stay in business. WE as dealers pay upwards of $60,000+ per year just to be able to carry their products. More dealers give consumers more options to drive prices down, enabling them to get the best deal. Less dealers=less competition and less money reduced on vehicles/parts/and service. We have been in the automotive business for 52 years, 31 of which were selling GM products. I am the third generation of our family dealership. We are in a rural area and over 1600 of our loyal customers came out to sign a petition to keep us open with GM We have over 10 employees who have been here for over 20 years. We create a family atmosphere for our customers which is why they are so loyal and keep coming back. We want to KEEP jobs in this economy, not lose them!If this bill is passed it will save the franchise rights of ALL dealers and potentially save over 500,000 jobs.

John McWilliams

June 19, 2009, 4:32pm (report abuse)

I am a retired parts manager of a
Ford dealership. I know the Dealers are the life's blood of any
auto manufacturer. This is insanity to close these retail business. This bill must pass.

Chris McWilliams

June 19, 2009, 4:59pm (report abuse)

I am the general manager of a chevrolet chrysler dealership and we lost both franchises . we lost chrysler because we are a gm dealer ,not because of sales we were always in the top of our district in sales and service. then one day later we lose chevrolet ,we are a profitable business , all of the unprofitable dealers have gone out of business in the last year!! times have been tough but we made it , only to be told your not good enough by people that have no clue about the car business , the auto task force and obama !!! my tax money is buying them out and then they take my job with my own tax money , this is not america , please pass this bill , there are thousands of us with familys that are in total limbo !!! help us now !!!

Terminated

June 19, 2009, 5:18pm (report abuse)

881 dealerships closed in 2008. More would close on their own in 2009. There was no need to push these hard working tax paying dealers off the cliff without compensation.

Pay the dealers what you would have had to pay them under state franchise laws.

No one has the right to steal what is not theirs from anyone in this country.

Pass this bill!!!!

another affected dealer

June 19, 2009, 9:00pm (report abuse)

Chrysler says they are cutting the dealer network because it is too large for them to support. HOWEVER, in my city they will be replacing my dealership, a family owned business for 39 years, with another dealer next month. We too were profitable, had good CSI and sold hundreds of vehicles for Chrysler yearly. In my opinion, they have stolen our dealership to give it to someone else. In fact, we believe the agreement was reached before Chrysler even went into bankruptcy....collusion....theft....anti-american. Pass the bill!!! Protect ALL dealers as this could be Toyota, Ford or Nissan next.

Junk pededler

June 20, 2009, 11:01am (report abuse)

Pass this bill. I sold Cadillacs to my friends, neighbors, and relatives.I recomended such products as Cimmeron, Catera, 8.6.4.v8, converted diesel, and the renowned 4100 v8. Many friends, neighbors, and relatives are still pissed off. GM wants to reinvent the automobile business by replacing loyal dealers and replace us with dealers who never recomended and sold the above GM junk, a clean slate. Customers hated the product not the dealers.H.R.2743 must be passed.

Sue Mathews

June 20, 2009, 2:09pm (report abuse)

No good can come from closing 25% of the dealerships, the countless unemployed that would be added to an already staggering number would be devastating. Whole families are losing their livelihood when, family owned dealerships close. Bail out the manufactures if you must but don't close the dealerships.

J Hudson

June 20, 2009, 3:53pm (report abuse)

I've worked for a family run GM dealer for 38 yrs which has been in business for 71 yrs.THEY OWN 2 CHEVY FRANCHISES.Both dealers are profitable in the central Fl. area.
I alone sell $100,000.00 or more in parts a month. GM has not scrutinized the closings very close obviously.Our town needs these dealerships for many obvious reasons.PLEASE KEEP US OPEN! Pass this Bill!

John & Carol Hare

June 21, 2009, 6:56pm (report abuse)

We have brought cars from Holler in Orlando since 1960's when they were by the railroad track in Orlando, Florida. We have family members who have purchased vehicles from Holler and we have purchased four vehicles from them.
We need to keep Holler here in Orlando as we no longer have a dealer in Sanford and loosing both Holler dealers would be a great injustice to us and to the Holler family who have been in business for many years. It is an injustice to us as customers and is taking away our freedom of choice.. please vote yes on this bill. I PRAY THAT GOD WILL BLESS THE HOLLER FAMILY OWNED DEALERS AND THERE EMPLOYEES IN ALLOWING THEM TO REMAIN OPEN AS A GM DEALER. AGAIN PLEASE VOTE YES ON THIS BILL....

JB

June 21, 2009, 9:36pm (report abuse)

The fact is the industry has taken a hit. From 17Million cars sold ina a year down to approx 10 million. When you adjust the number of nameplates and reduce the production drastically you cannot supply enough units for all the dealers to remain healthy. You either starve the entire group of dealers OR you adjust to a lower number of dealers that can sell cars and get healthy. The reduction is necessary. Sorry but you can thank your wonderful congressmen DODD and FRANKS for tanking the economy by forcing banks to make stupid loans under the philosophy of "Everybody should be able to own a house" . Well everybody shouldn't as we all have found out the hard way.

Chevrolet Owner

June 23, 2009, 11:59pm (report abuse)

America is no longer the land of free enterprise. What you legally own can be taken just like that.We are all paying for the sins of GM. I hope you have all contacted your Congressmen asking them to support HR2743. For some of us it is our last hope. We need to regain our rights. There is strength in #'s & we can share helpful info if you would contact me at jj2875@comcast.net

Citizen

June 24, 2009, 10:15am (report abuse)

I have read all comments and can add little to the disgust the majority of citizens feel. We lost a wonderful dealership in our area, because GM couldn't support underperformance they cited the dealership wasn't aligned with Buick/GMC/Pontiac. The dealership tried for several years to approve Buick, they delayed and delayed. Basically, they provided the franchise to a dealer who is not well respected, financially sound, or someone I want working on my vehicle. My choice of dealer was removed. Who know's why they chose who they chose. I know the dealer who is being eliminated supports many wonderful programs in our community, scholarships, sports , fund raisers, etc. It's our loss, the least we can do is give these dealers back their franchise rights, the state rights granted when they agreed to become a dedicated sales force for the automakers. Over 38 years in business, I'm so disappointed in many aspects of our government right now.

G M EMPLOYEE

June 24, 2009, 5:28pm (report abuse)

I THINK IF WE GET A SECOND CHANCE FLORIDA DEALERS SHOUL BE CLOSED ON SATURDAYS

Michelle Bergondy

June 26, 2009, 9:40am (report abuse)

I'll tell you what. I've never seen the economy the way it is, and I've been in the car business for almost 3 years, now, for my first time. It's actually getting scary to me, even though I work for a Honda dealer, and we do well. I really do feel bad for everyone at the Chrysler and GM dealers. This bill really does need to be passed. I do agree, that the dealers shouldn't just be taken away. Things could be worked out. Please pass this bill.

American and a human being

June 26, 2009, 1:02pm (report abuse)

We are being shut down even though we Aligned with Buick/Pontiac/GMC, aquiring Ponitac only 10 months ago with GM's blessings and support. Now we've had all 3 taken away and still owe the money for Pontiac. We can lose all of our savings and our home. GM got the government's help. We need it too!!

Sandra Harrison

June 27, 2009, 9:48am (report abuse)

It would be a horrendous injustice to take the franchises from a well- respected, home-grown, profitable Florida GM dealer who has been in business for 71 years. The Holler family franchises are part of the American fabric, symbolic of the American Dream. Taking away their franchises, and others like theirs, would send a message to the American people. The message would be that although the "American Dream" is still achievable in this country, BEWARE you are at the mercy of BIG GOVERNMENT. The government can shatter your American Dream by unjustly taking away everything that your family has worked for generations to achieve.

Pass HR2743.

Sandra Harrison

June 27, 2009, 9:49am (report abuse)

I am a high school teacher. I teach my students, that although it may be more difficult than in the past, the American Dream is achievable. The economic condition of the country has many of my students, and others around the country, questioning our country's evolving values. Please, demonstrate to my students, and others throughout the country, that we have a government “for the people” and “by the people” by passing HR2743.

Nate Sherman

July 2, 2009, 12:23pm (report abuse)

This bill must pass to restore the constitutional rights of free enterprise in this country. The actions o this current government is digusting and it is ruining american families all over this country. We are supposed to be preserving and creating jobs and wealth in this country not destroying business and famlies. The bankruptcies that were government sponsored are biased and unfair. This country is appauled at the actions taken by the auto task force and current administration. For the sake of the auto industry and all the real people and famlies that are effected please restore dealer rights and cut out the bureaucratic nonsense that is hurting me and thousands of others who helped make this country what it is today.

elected urban county representative from Florida

July 5, 2009, 1:49pm (report abuse)

Urban counties are being hit especially hard. We all benefit from the auto industry. Jobs,land & specialized building not sitting vacant and most importantly tax revenue-both in property taxes and sales tax (auto being one of the largest generators). I strongly believe in the free enterprise system and the United States government has crossed the line!Investing our tax dollars in a failing business is NOT the American way. I strongly encourage ALL of our Congressional and US Senate representatives to stop "going along" and start doing your job, which is to defend against abuse and wasteful spending of our revenues & speak up for the people!It is bad enough that the US Government has invested in a FAILING business, now the largest shareholder of GM) but to dictate that 50% of the current dealership be closed is about as Un-American is it gets! This country was founded on certain principals and rights and it's your job to defend them. Free Enterprise should be at the top of your list!

Rolan Coomer

July 6, 2009, 11:07pm (report abuse)

Why would you punish dealers that have been profitable and had the business savvy to be able to stay open through a lot of economical down times yet rewarding Manufacturers that have been mismanaged and are failing. What happened to the old saying that competition is good for business. That is exactly what makes America prosper. I understand that these dealers cost the Manufacturers very little because they pay most of their expenses up front. If this bill does not pass the American People will be the loser and Big Government Beauracracy will be the winner. Then there will be more goverment money to spend paying unemployment to all of the employees of these dealers, instead of them having the pride of owning their own living and feeding the tax base that makes this great country GREAT. Please pass this bill.

Tired

July 7, 2009, 5:32pm (report abuse)

Survival of the fittest. Let all the dealerships duke it out for business. Those with the best business plans and reputations live, other fall. The government and the auto manufacturers have no business playing god and deciding who lives and who dies.

out_west

July 9, 2009, 11:05am (report abuse)

has there ever been congressional action when the local Starbucks or Circuit City closed? You know why??? Car dealers spend lots more on politicians than the stupid barrista ever did!

spitzer motor city employee

July 9, 2009, 4:51pm (report abuse)

i've been employed at spitzers for a very long time. this is what i do, this is all that i know, please pass the bill,please

Rich

July 16, 2009, 8:51am (report abuse)

The GM and Chrysler model of fewer dealers selling more cars has already failed. Look at the failed Saturn model. Saturn had fewer dealers with large exclusive marketing areas. But, it failed. Why? Its the product not the dealers! If McDonalds want to sell more hamburgers they would not close restaurants.

phil for usa

July 21, 2009, 9:28pm (report abuse)

who in the hell is Lindsay Smith? Is she related to Mark LaNeve, Obama or the Car Czar? We know she's a Democrat! Lets get this bill DONE. I need my job.

Jimmy B.

July 22, 2009, 11:26am (report abuse)

As a GM dealership employee for the last 16 years, I am very saddened to see what GM has done. With no regard for those that have helped them over the years, they plan to cut and run. It is very difficult to represent GM products in a sales environment knowing that they are stabbing us in the back. This has got to stop. GM needs dealers more than the dealers need GM. I have lost all respect for GM and their top executives and I believe most of the general population feels the same way. They ought to be ashamed of themselves. And so should you, Lindsay Smith. Pass H.R. 2743 NOW!

Unemployed Texan

July 22, 2009, 6:03pm (report abuse)

As being currently unemployed due to the forced Chrysler dealer termination, along with 85 other employees. While we are currently seeking gainful employment I say Shame on you. No longer as dealership are we able to continue support to the local churches and schools we as taxpayers can no longer spend money to fuel the ecomomy as we struggle to feed our families. The overspending and greed was done by the manufacturer not the dealer and certainly not by their employees. This bill needs to be passed to help fuel the economy not create more panic than it already has.

lester

July 24, 2009, 10:04pm (report abuse)

As a former employee of Jack Fitzgerald in the early 90s I can credit him in being instrumental in convincing me to make a career change back then. He convinced me that his philosophy of one price shopping would catch on and be the ultimate demise of the industry. Mr Fitzgerald needs to accept the fact that his dealerships are gone due in part to his inability to make a profit on the sales side, leaving him with salespeople who couldn't make a living. Impoort dealer's facilities look modern because the manufacturer has the leverage to force their dealers to re-invest a portion of their healthy profits into the constant modernization of their facilities. Mr Fitzgerald and his sons need to accept the dysfunction of their business model and solicit the new Chrysler into allowing them to purchase a NEW store with a commitment to hiring a sales team and invoking a sales strategy that allows them to be PROFITABLE on the sales side.

Arthur

July 25, 2009, 8:52am (report abuse)

I have read online that there are analysts who believe that the dealership networks of GM and Chrysler are too large for the market, which has shrunk to 10 million. If so, shouldn't the dealership network be downsized accordingly?

25 years

August 4, 2009, 9:03am (report abuse)

I have been a general motors dealer for 25 years and now they decide I cost them money. Let me tell you, If I ran my dealership like they do I would have been out of business after the first year. Their wasteful spending is what broke them not the dealer. Over paid execs and upper level management is where their wast is. Some days we would receive 5 envelopes from the same facility. Add that up and see how to cut costs. Re instate the dealerships and trim the fat from execs and lets make some money together.

taxpayer $

August 6, 2009, 12:27pm (report abuse)

As an American Tax Payer I feel that since the US Government owned General Motors has decided to terminate my dealership that all people affected by the termination of these dealerships should not pay one more cent to this government. They fired us and still want us to support their habits, of wasteful spending. Perhaps if enough of us could stop paying our taxes maybe they would get the picture to reinstate the terminated dealers. Of course with our government we would be put in jail for not paying our taxes. Where are our constitutional rights? Freedom to own our own business and employ people. Too bad you can't fight government.

ChuckL

(logged in user) August 25, 2009, 6:54pm (report abuse)

Unfortunately this bill like its predecessor on the list only supports government owned dealers.

It has got to go.

Replace it with a non discriminatory bill.

carguy

September 9, 2009, 7:42pm (report abuse)

I am deeply involved in the automobile retail network and I can tell you the dealer reductins were necessary. When one's piece of the pie is too small a business cannot thrive. GM's market share is now around 19% down from the high of 51%. Their network was laid out when they had the larger market share. The market can no longer sustain all of these points or retail. Now that those who are left have chance to compete with their foreign competitors on a dealer to dealer level. They will make more money in most cases and that will allow for them to sponsor more than one little league team etc. This bill needs to be killed.

Frank ODonnell

October 5, 2009, 2:48pm (report abuse)

I have been a GM customer for 49 yrs., if I cannot buy a new Chevrolet from my local dealer who has been canceled by GM then I
will simply purchase a Honda. I plan to buy a new car in November of 2009, I sincerely hope that
my Chevy Dealer is still in business here in Colorado Springs,
CO (Daniel's Chevrolet). Thanks !

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