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Obama praises GM's decision to offer dealers reinstatement

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Obama praises GM's decision to offer dealers reinstatement

David Shepardson / Detroit News Washington Bureau

Washington -- President Barack Obama praised the decision by General Motors Co. to allow hundreds of dealerships targeted for closure to remain open -- after his administration opposed legislation that led to the reversal.

In a speech to party donors in Boston on Thursday, the president defended the government bailout of automakers, and pointed to the restoration of dealerships as evidence of success.

"A year later, GM is hiring again, on the verge of reopening hundreds of dealerships," Obama said. He said GM's decisions are evidence that the government's $50 billion bailout of the automaker "was the right thing to do."

GM said last month it offered more than half of the 1,160 dealers who appealed its attempts to shutter them a chance to stay open.

But Obama's statement was criticized by the National Automobile Dealers Association, which noted that his administration "strongly opposed" legislation passed by Congress last December that gave 789 closed Chrysler dealerships and roughly 2,000 GM dealerships the right to appeal their closings.

Last July, the White House said that legislation could set a "dangerous precedent."

The White House "strongly opposes the language in the bill that attempts to restore prior Chrysler and General Motors franchise agreements," the administration said at the time. "The decision by Chrysler and GM to rationalize their dealer networks was a critical part of their overall restructuring to achieve long-term viability in order to save jobs in the long run, and to improve the prospects for the companies' repayment of the substantial taxpayer investments."

Bailey Wood, a spokesman for the dealers association, said Friday that Obama's auto task force last year "required the closure of nearly 2,500 dealerships at a cost of 100,000 jobs.

"Now," Wood said, "he is touting the fact that jobs were created after dealer arbitration legislation, which his administration opposed, forced GM/Chrysler to reevaluate closing these dealerships."

The Detroit automaker, which is 61 percent owned by the Treasury Department, sent letters to 661 dealers offering to reinstate their stores if they meet requirements for facilities, capitalization and inventory financing. Dealers who have appealed their termination, and not been offered reinstatement, will continue toward arbitration.

Chrysler has sent letters to 86 dealers offering them a chance to reopen.

From The Detroit News: http://www.detnews.com/article/20100402/AUTO01/4020417/1148/AUTO01/Obama-praises-GM-s-decision-to-offer-dealers-reinstatement#ixzz0kEGYCQCR

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'We want to keep these dealerships open.'

'No; you cannot keep these dealerships open!'

'OK, you can reopen some of these dealerships.'

'LOOK- WE CREATED MORE JOBS !!'

:wacko: :wacko: :wacko: :wacko: :wacko:

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OK..., but the article does read that way.

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OK..., but the article does read that way.

I saw nothing about jobs.

It was I was against this but now I am for this. It is just regular DC spin both sides play. No one wants to look like they lost anymore.

Edited by hyperv6
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I saw nothing about jobs.

>>""A year later, GM is hiring again, on the verge of reopening hundreds of dealerships," Obama said."<<

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>>""A year later, GM is hiring again, on the verge of reopening hundreds of dealerships," Obama said."<<

Sorry I missed it. I guess it is my way of thinking they did not create a new job as most just got the old job back. That is if the dealer had closed. Some are still open yet in this area that were to close.

Good news that is if those folks don't mine giving up that really cool newly created temp job with the census.

Like I said DC spin. Lies, Dam Lies and Statistics. :lol:

Edited by hyperv6
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Allowing GM and Chrysler to close dealerships put them back on more even footing.

Obama did not want Congress to get in and muddy the issue up by forcing GM and Chrysler into arbitration. Doesn't mean he was against reopening dealers, he was against congressional action.

but to sum it up.... I think that everyone involved wanted to see GM and Chrysler do what ever it took to get healthy again so they could start hiring more people back. That was the point of this whole exercise.

Obama isn't bragging about created jobs. He is bragging that GM and Chrysler are back into growth positions again.

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but to sum it up.... I think that everyone involved wanted to see GM and Chrysler do what ever it took to get healthy again so they could start hiring more people back. That was the point of this whole exercise.

Obama isn't bragging about created jobs. He is bragging that GM and Chrysler are back into growth positions again.

This.

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