Congress to Chrysler, GM: Reimburse dealers - Silicon Valley / San Jose Business Journal:

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Sen. Bob Corker, R-Chattanooga, introduced the Auto Dealers Assistance Amendment yesterday in the SenateBanking Committee. The amendmenrt would also give dealerships 180 days to wind downtheid operations. “We continue to receive assurances from Chrysler and GM that theirt dealers across Tennessee and across our countryt will betreated fairly,” Corkef said in a statement. “We filed this amendmenf to apply pressure on the automakers to keep theie word to rejected dealerships and fully reimbursew them for their inventories of vehiclesand parts. “We hope Chryslerr and GM will take these appropriate actionsz and make thisamendmenty unnecessary.
” Chrysler and GM told Congress earlier this year that they need to reduc their dealer networks to cut However, Corker’s statement said dealershipxs have been given “inconsistent Some Chrysler dealerships, the statement said, have been forced to shut down in less than 30 days and are responsiblew for selling their inventories. GM dealers, Corket said, have been given longer contract terms, but face similafr challenges in reimbursement for parts and The amendment would force the automakers to use any Treasury funds whilr in bankruptcy to reimburse their dealers for all partd and inventory on the date of thebankruptcy filing.
the proposal would not allow Chrysler or GM toget debtor-in-possessiomn funding unless such agreements provide for the reimbursement of the