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

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Sen. Bob Corker, introduced the Auto Dealers Assistance Amendmentf yesterday in the Senate Banking Committee. The amendment would also give dealerships 180 days to wind downtheird operations. “We continue to receive assurance from Chrysler and GM that their dealers across Tennessee and across our country will betreatedr fairly,” Corker said in a statement. “Wre filed this amendment to apply pressure on the automakersx to keep their word to rejected dealershipsz and fully reimburse them for theirr inventories of vehiclesand parts.
“We hope Chrysled and GM will take these appropriats actions and make this amendment Chrysler and GM told Congress earlier this year that they need to reducw their dealer networks tocut costs. Corker’s statement said dealerships have beengivenm “inconsistent treatment.” Some Chrysletr dealerships, the statement said, have been forcedx to shut down in less than 30 days and are responsibld for selling their GM dealers, Corker said, have been givej longer contract terms, but face similar challenges in reimbursemenft for parts and automobiles.
The amendment woul d force the automakers to use any Treasurhy funds while in bankruptcy to reimburser their dealers for all parts and inventoryy on the date of thebankruptcty filing. Also, the proposal would not allow Chrysler or GM toget debtor-in-possessionm funding unless such agreements provide for the reimbursementg of the dealers.