WASHINGTON — To extend some relief to U.S. auto dealers impacted by Chrysler’s bankruptcy filing and falling sales, U.S. Senator Kay Bailey Hutchison (R-Texas) introduced an amendment that will give dealerships slated for closing on June 9 an extra 60 days to close down operations and sell remaining inventory.
Speaking on the floor of the U.S. Senate in support of her amendment, Sen. Hutchison said:
“Auto dealers are some of the biggest and best employers in our nation. In small towns across Texas, many of them are the largest employers in their entire county. While I understand that an auto dealer is forced to close its doors because the dealer is unable to make the business profitable, I cannot understand why Chrysler would arbitrarily shut down thousands of operating and profitable dealers across our country.
“My amendment simply states that no funds shall be expended from the Treasury to an auto manufacturer that has notified a dealership that it will be terminated without providing at least 60 days for that dealership to wind down its operations and sell its inventory. Sixty days are all we’re asking for. Frankly, I wish we could go much further, because I fundamentally disagree with the decision to arbitrarily and unnecessarily close down these auto dealers.”
Amendment 1189 to H.R.2346, the Supplemental Appropriations Act reads:
“No funds shall be expended from the Treasury to an auto manufacturer which has notified a dealership that it will be terminated without providing at least 60 days for that dealership to wind down its operations and sell its inventory.”
The amendment has been endorsed by the National Automobile Dealers Association.