Congress may help dropped auto dealers

As Chrysler, GM announce cuts, Senate and House officials consider possibility of legislation to at least soften the blow.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

Photos
American cars: Red, white and cheap
A bad economy and crumbling auto sales have created absurdly low prices for some truly great American cars.
Do you think the changes being made at Chrysler and General Motors will save the companies?
  • Yes, both of them
  • Only GM
  • Only Chrysler
  • Neither

WASHINGTON (Reuters) -- U.S. lawmakers whose home districts include General Motors Corp. and Chrysler LLC operations in Michigan are weighing the possibility of legislation to help auto dealers being dropped by the two distressed companies.

Senate and House officials told reporters on Thursday that Congress could intervene to at least soften the landing for dealers being notified this week that their contracts will not be renewed.

Bankrupt Chrysler said earlier on Thursday that it would terminate 789 U.S. dealerships. GM (GM, Fortune 500) is expected to notify up to 2,000 dealers about termination, sources have told Reuters.

"I have more questions for the companies themselves as to what the process is going to be going forward," said Rep. Gary Peters. "Dealers understand there will be consolidation. They want an orderly process."

Dealers have met with congressional officials and members of the Obama administration's autos task force, which is overseeing industry restructuring, to try to get Washington to slow the downsizing. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 things you'll love about Windows 10 There's a lot to like about Windows 10. Here are our favorite features in Microsoft's soon-to-be-released operating system. More
Warren Buffett's gone cold. How his top 10 stocks are doing The Oracle of Omaha is an investing legend. But several of Berkshire Hathaway's biggest investments are off to a lousy start in 2015. Will shareholders complain at the annual meeting in Omaha on Saturday? More
BMW's M235i doesn't compromise BMW's new M235i gives you the performance of an M car for a lot less money. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Copyright 2009 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.