Auto Task Force Warns Against Plan To Restore Closed Dealerships

By: Associated Press Email
By: Associated Press Email

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Tuesday, July 21, 2009

The head of the White House's auto task force is warning Congress against a House-approved plan to restore General Motors and Chrysler dealerships being closed by the car companies' bankruptcies.

Ron Bloom told a House subcommittee Tuesday that the plan would set a "dangerous precedent" and raise legal concerns, according to remarks prepared for delivery.

Bloom said if Congress intervenes, it could jeopardize the ability of taxpayers to recoup billions in federal aid to GM and Chrysler.

The House approved a measure last week that would force GM and Chrysler to restore about 3,000 dealerships expected to be closed in the bankruptcies. The Senate has not yet considered the plan.

Dealers support the bill, arguing that nearly 200,000 workers could lose their jobs.

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