Today on Capitol Hill, the Senate Commerce Committeewill question GM CEO Fritz Henderson and Chrysler President Jim Press about their moves to close roughly 2000 dealerships. For all the importance that comes with a Congressional hearing, don't expect much to change after this one.
Chrysler and GM are taking full advantage of the bankruptcy laws which allow them to kick out contracts.
It's the one "advantage", if you want use that word, of Chapter 11 for the auto makers. The only hope for Chrysler's 789 dealers being eliminated is with a bankruptcy judge. Today, the court will rule on whether those contracts can rejected.
This is not what dealers want to hear. They believe they are being cut for no good reason. They don't buy the auto makers idea of fewer, stronger dealers being better for GM and Chrysler.
They have some valid arguments. Unfortunately for them, there's not much relief they can find on Capitol Hill.
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