And they said they wouldn't interfere in their operations. That lasted all of about ten minutes. [
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So, President Obama buys GM, but reassures Americans: "What we are not doing … is running GM.”
Got that? Then, GM tries to close hundreds of excess dealerships to cut costs…and now Congress is stepping in to stop them.
More here. [
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Under legislation that has rapidly gained support, GM and Chrysler would have to reinstate more than 2,000 dealerships that the companies had slated for closure.
The automakers say the ranks of their dealers must be thinned in order to match the fallen demand for cars. But some of the rejected dealers and their Capitol Hill supporters argue that the process of selecting dealerships for closure was arbitrary and went too far.
Since federal money has been used to sustain the automakers, they say Congress has an obligation to intervene.
At a gathering of dozens of dealers who came to Capitol Hill yesterday to lobby their representatives, House Majority Leader Steny H. Hoyer (D-Md.) and several other congressmen spoke in support of the dealers. More than 240 House members have signed onto the bill, supporters said.
"We are going to stand with them for as long as it takes," Hoyer told an approving crowd.
The expanded role of the government in the companies it has bailed out has stirred warnings that the federal bureaucracy could smother the once-private companies, stymieing their recovery.
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