Lawmakers ask Obama to give carmakers time
WASHINGTON (AP) — Lawmakers appealed to the Obama administration Friday to slow down the restructuring of General Motors and Chrysler, wary of shuttered car dealerships, job losses and the big unknown of a GM bankruptcy.
“We are asking President Obama to call ‘timeout’ on his automobile task force,” said Rep. Steve LaTourette, R-Ohio.
Members of Congress urged the White House to re-examine its work to stabilize the U.S. auto industry, prompted by sweeping plans outlined last week by Chrysler LLC and General Motors Corp. to shutter hundreds of car dealerships.
They said a pending June 1 deadline for a GM bankruptcy created more uncertainty for the industry and could lead to a rash of more job losses and dealership closings.
Thirty-six members of Congress, mostly Republican, told the White House they were troubled by the work of the auto-industry task force appointed by the president earlier this year. The panel has worked with GM and Chrysler to try to restructure the companies.
“They represent various Wall Street interests who have long looked at exporting jobs out of this country,” said Rep. Dennis Kucinich, D-Ohio, who accused the task force of facilitating plans by GM to import Chinese-made vehicles to the U.S.
Five House members, including Kucinich, LaTourette and House Judiciary Chairman John Conyers, D-Mich., met with a representative of the Obama task force Friday.
The White House said it was focused on helping the companies become viable to preserve jobs and strengthen the auto industry.
Chrysler LLC, which has received $5.8 billion in federal aid, disclosed in bankruptcy court last week its plans to close about a quarter of its 3,200 U.S. dealerships by June 9.
Included on Chrysler’s list was Frederick Chrysler Jeep Dodge in Boardman and Preston Chrysler Jeep BMW, which will continue to sell BMWs. GM’s closing list included Reichenbach Motor Sales in Columbiana County.
General Motors, which has received $15.4 billion in aid and could be forced into bankruptcy, has told about 1,100 of its dealers — about 20 percent — that their franchise agreements will not be renewed by late next year.
The loss of car dealership jobs affect communities throughout the country, not just Rust Belt states.
43
