US Rep Hoyer:Supports Car Makers Renegotiating Dealer Contracts
July 14 2009 - 12:32PM
Dow Jones News
A top House Democrat said Tuesday he supports a measure
requiring General Motors Corp. (GM) and Chrysler LLC to negotiate a
fairer settlement with the dealerships with which they cut ties as
part of their bankruptcy proceedings.
House Majority Leader Steny Hoyer, D-Md., said he expects the
measure to remain in a bill providing funding for the Treasury and
other government departments in fiscal 2010.
That legislation is slated to come to the House floor for debate
and vote this week.
The measure doesn't dictate terms the auto makers must meet with
the dealerships with which they have ended their franchise
agreements, but simply requires them to come back to the
negotiating table.
Another version of legislation introduced in the House by
Democratic lawmakers would state the auto companies must restore
the franchise agreements to the dealers.
Hoyer said that lawmakers are continuing talks with the two
carmakers to try and persuade them to do more to help the
dealerships.
The language directed at the auto makers was added to the
legislation at a lengthy committee hearing last week. It was
introduced by a Republican member of the House Appropriations
Committee, Rep. Steven LaTourette, R-Ohio.
Without the support of House leadership, it was unlikely to be
included in the version of the bill that came to the House floor,
as such non-pertinent additions are often stripped out of spending
bills at the late stages of the legislative process.
-By Corey Boles, Dow Jones Newswires; 202-862-6601;
corey.boles@dowjones.com