Press Releases

Sen. Hutchison: Chrysler Makes Additional Concessions for Auto Dealer Community

Promises Opportunity for New Dealerships and Parts Buy-Back

June 15, 2009

WASHINGTON, D.C. – In response to concerns raised at a June 3 Commerce Committee hearing, U.S. Senator Kay Bailey Hutchison, Texas’ senior Senator, today received a letter from Chrysler President Jim Press outlining the company’s steps to protect auto dealers forced to close under Chrysler’s new business strategy.

“I have been exceedingly concerned about the impact Chrysler’s dealer closings will have on hundreds of small businesses, thousands of employees, and entire communities across Texas and the nation. I am pleased that Chrysler is responding to our calls to treat these dealers, who were forced to close through no fault of their own, fairly and equitably.” said Sen. Hutchison. “What Chrysler has promised me is not nearly as important as the promises Chrysler must honor for its closing dealers: a fair process that will limit the economic damage on businesses, families, and communities. I will continue to work with all involved parties to ensure that each impacted dealer has ready access to the resources they need to close down their operations smoothly.”

The letter to Sen. Hutchison, Ranking Member of the Senate Committee on Commerce, Science, and Transportation, addressed the following issues she raised in the hearing.

·         Chrysler has committed that 100 percent of closing dealers’ inventory will be purchased at cost, minus $350 for inspection, cleaning, and transport.

·         Chrysler will work with closing dealers to redistribute remaining parts inventory for 90 days, and the company will then repurchase qualified parts at an average transaction price.

·         Chrysler has provided assurances that discontinued dealers will have first consideration of new dealerships if Chrysler reenters or expands operations in impacted dealers’ markets.

 

At the hearing, Sen. Hutchison expressed concern that closing dealers would be left with millions in parts and inventory that they could not resell. She also questioned Mr. Press on whether the dealers that had been forced to close would be given first consideration of buying into a new dealership if the Chrysler corporation reentered their markets. Mr. Press’ letter directly addresses these concerns, as well as those raised by other Commerce Committee members. Click HERE to read Mr. Press’ letter in its entirety.

Sen. Hutchison’s work on behalf of Chrysler dealers began in May, when she learned that select dealerships had been informed they had three weeks to close down their businesses with virtually no assistance from Chrysler. On May 21, she introduced an amendment to deny Chrysler additional Treasury funding unless it gave dealers slated for closing adequate time to do so.

She withdrew the amendment when Mr. Press personally assured her that Chrysler was taking the appropriate measures to help automotive dealers across the country. The June 2 Commerce Committee hearing was set so that Sen. Hutchison and other committee members could hear from affected auto dealers and receive detailed explanations of Chrysler’s efforts to help the dealer community.

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RESOURCES:

Click HERE for a timeline of Sen. Hutchison’s efforts on behalf of the auto dealers.

Click HERE to watch Sen. Hutchison’s statement during the Commerce Committee hearing on the General Motors and Chrysler dealership closures.

Click HERE to read the letter sent to Chrysler Dealers.

Click HERE to read the Commerce Committee letter to Chrysler and GM CEOs.

Click HERE to read the letter to Sen. Hutchison from Chrysler.