Wednesday, June 3, 2009
Top executives from General Motors and Chrysler are defending their decision to slash dealerships around the country despite many hardships.
They say the moves are unavoidable as they fight to overcome bankruptcy and survive.
GM president Fritz Henderson and Chrysler President James Press tell the Senate Commerce Committee in prepared testimony that there are too many dealers and the networks date from the 1940s and 1950s when their companies were giants.
Henderson says that reinventing GM is "quite painful" for the company, customers and especially for our dealers.
Committee Chairman Jay Rockefeller is complaining that the car companies are leaving local dealers and their customers out in the cold. That, Rockefeller said, is just plain wrong.