Posted on 07/16/2009 8:44:56 AM PDT by La Lydia
The White House on Wednesday blasted growing, bipartisan congressional efforts to aid closed auto dealers but stopped short of threatening a veto. An amendment to put dealers back in business survived a challenge in the House Rules Committee on Tuesday and is to be voted on as part of the financial services appropriations bill this week. The Obama administration said reversing dealer closings would set a "dangerous precedent, potentially raising legal concerns, to intervene into a closed judicial bankruptcy proceeding on behalf of one particular group at this point." The statement is consistent with the administration's position during the bankruptcies of General Motors Corp. and Chrysler LLC, in which the automakers shed more than 3,000 dealerships. Nonetheless, battle lines are being drawn as a number of high-ranking congressional Democrats back a measure opposed by a president of their own party...
The administration was instrumental in this spring's bankruptcy reorganizations of GM and Chrysler. The automakers argued with administration backing that they needed leaner, more profitable dealer networks. GM spokesman Greg Martin said Tuesday that the dealer legislation puts the automaker's current restructuring plan "at risk."
A leading supporter of dealer relief, House Majority Leader Steny H. Hoyer, Maryland Democrat, defended the amendment Wednesday but signaled there was room for compromise....
(Excerpt) Read more at washingtontimes.com ...
Oh I see ... NOW Obozo is worried about “dangerous precedents, potentially raising legal concerns” ...
“Oh I see ... NOW Obozo is worried about “dangerous precedents, potentially raising legal concerns” ...”
I think he’s worried his UAW goons won’t get to hand pick the surviving dealers and stock them with union guys...
We cut the dealers, let them die, they are rich folk. They didn’t vote for me, we want them gone.
Our politicians do this frequently. They come up with a new program to deal with the damage they created through an old program. It would be helpful if they realized that they are not the solution for everything.
Excuse me. Didn’t he say the bailout was for small busineses. Very few are still open here. Only the Unions and the big banks are his prioities I see.
“They come up with a new program to deal with the damage they created through an old program.”
And then act like they didn’t create the original problem so they appear like they’re doing something.
I still can’t figure out why the numbers of dealerships are any of the Govt’s business in the first place.
only diehard contributors to the Democratic party need apply.
He's freaking joking, right?
Just a glimpse of what we will see with national health care.
Until the bailout, they weren’t. And the dealerships and auto manufacturers fell under state law, not federal law. The auto companies had to obey state law and honor the contracts they had with the dealers. But the bailout bill put the feds in the driver’s seat, so to speak, overriding state law and the dealers’ rights. The feds sided with the auto companies, in which the federal government now has a big stake, and agree to cut off the dealers that the auto companies wanted to get rid of, that is, screw. (And there were earlier posts showing this was done, in some cases, in a way that punished dealers who supported Republicans.) Hence you have this mess that we now apparently get to pay for.
They found that dealerships in areas were Obama won were more likely to remain open. Areas where he lost were more likely to get closed.
Any class action suits regarding the White-Crib-Engineered bankruptcy restructure of GM and Chrysler which obliterated states’ franchise laws (10th Amendment)?
Don’t know, but it seems to me that would be the obvious next move.
Yeah. He sure as hell didn’t give a sh!t about that when he steamrolled the debt holders to give the auto companies to the unions.
winner winner chicken dinner. exactly!
Notice this is originating in the House. This is clearly about 2010, with congressmen waking up and thinking “Holy Crap. The closed dealerships in my district are going to sink my chances for re-election!”
What percentage of car dealers do you think are registered Republicans? Obama doesn’t help his enemies.
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