Tuesday, July 21, 2009

Congress to Restore GM, Chrysler Franchisees?

I admit I am of two minds about House bill aims to restore GM, Chrysler dealers as I can sympathize with the impulse but really do not like the method. Here, I would leave the matter to the market and let that judge the wisdom of the bankruptcy process.

Palmer Chrysler Jeep Dodge on the west side closed last month as part of Chrysler LLC's bankruptcy reorganization. But the dealership would sell the company's cars once more given the chance.

"We would do it again, yes," said Garry Huffman, a partner in the Palmer dealership that had sold Chrysler vehicles since 1956.

There's a slim chance he'll get it. The U.S. House of Representatives yesterday approved a plan to force Chrysler and General Motors Co. to restore agreements with dealers shed during their bankruptcy proceedings.

The provision, part of a spending bill that passed 219 to 208, would require the automakers to restore franchise agreements with thousands of dealers as a condition of receiving federal aid.