Ron Bloom, leader of Obama’s auto task force, warned the U.S. Congress today that the House-approved measure to restore some 3,000 dealerships scheduled to be closed by General Motors and Chrysler would threaten the recovery of the two automakers that recently exited bankruptcy.
Bloom told a House Judiciary subcommittee that the plan would set a “dangerous precedent.”
“By all measures, these companies had far too many dealers relative to the number of cars they were selling,” said Bloom. He said that if Congress gets involved, it could jeopardize the ability of the two companies to repay billions in taxpayer loans.
The House approved a measure last week that would force General Motors and Chrysler to restore some 3,000 dealerships that were scheduled to close by next year. Dealers argue that nearly 200,000 workers could lose their jobs as a result of closings.
– By: Stephen Calogera