With Congress looking at the possibility of passing legislation requiring GM and Chrysler to restore the thousands of dealerships they collectively terminated during their bankruptcy proceedings, the White House issued a statement strongly opposing that legislation. Automotive News reports:
The White House issued a “Statement of Administration Policy” saying that the dealer cuts at GM and Chrysler were “a critical part of their overall restructuring to achieve long-term viability.”
“It 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 said.
The legislation to reverse those dealer terminations has been appended to a spending bill that is likely to pass. The provision has more than half the members as sponsors in the House and 24 sponsors in the Senate. Meanwhile, GM and Chrysler have opened negotiations with members of Congress to reach a non-legislative agreement on the matter, but no specific proposals have been made public at this point.