Isakson Announces Support of Bill to Force Chrysler, GM to Reimburse Dealerships
Isakson Announces Support of Bill to Force Chrysler, GM to Reimburse Dealerships
WASHINGTON – U.S. Senator and Senate candidate Johnny Isakson cosponsored legislation on Friday that would force Chrysler and General Motors to use any funding they receive from the U.S. Treasury while they are in Chapter 11 bankruptcy to fully reimburse all GM and Chrysler rejected dealerships for the cost of all parts and inventory.
Jun 13, 2009
“When you close your dealerships, you’re firing your sales force, because these dealers are not a liability. They’re an asset,” Isakson said. “In some cases, these dealers were asked to make additional purchases of products in order to save these companies. It’s only right that we help ensure the promises to these dealerships are fulfilled and they are reimbursed for their inventories of vehicles and parts.”
The legislation comes in the wake of letters that GM and Chrysler have sent to hundreds of dealerships across the country announcing that their dealership contracts will not be renewed. The legislation also would allow rejected dealerships a minimum of 180 days to shut down their businesses and sell off their inventories.
The legislation specifies that a bankruptcy court may not allow GM or Chrysler to obtain access to debtor-in-possession funding unless the credit agreement or agreements expressly provide for this treatment of the dealerships.
