Thursday, May 21, 2009
Lawmakers want the Obama administration to give poor-performing Chrysler dealers more time to wind down their dealerships.
Sen. Kay Bailey Hutchison, R-Texas, is pushing a proposal to give Chrysler dealers 60 days to close their dealerships instead of three weeks outlined by the company. Her measure would bar the Treasury Department from providing funding to an auto company that failed to give a dealership at least 60 days to wind down its operations and sell its inventory.
Chrysler LLC, which has filed for bankruptcy, said last week it intends to close about a quarter of its 3,200 U.S. dealerships by June 9. General Motors Corp. has told about 1,100 of its dealers — about 20% — that they would be dropped by late next year.