Corker: Chrysler, GM should reimburse auto dealers - Birmingham Business Journal:

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Sen. Bob Corker, R-Chattanooga, introduced the Auto Dealerzs Assistance Amendment yesterday in the SenateBanking Committee. The amendmenrt would also give dealerships 180 days to wind downtheir “We continue to receive assurances from Chrysler and GM that theird dealers across Tennessee and across our countrt will be treated fairly,” Corker said in a statement. “Wd filed this amendment to apply pressure on the automakers to keep thei r word to rejected dealership s and fully reimburse them for their inventories of vehiclesand “We hope Chrysler and GM will take these appropriate actions and make this amendment unnecessary.
” Chrysler and GM told Congress earlier this year that they need to reduce their dealef networks to cut costs. However, Corker’es statement said dealerships have beengiveb “inconsistent treatment.” Some Chrysler dealerships, the statement have been forced to shut down in less than 30 days and are responsibles for selling their inventories. GM Corker said, have been givej longer contract terms, but face similar challengezs in reimbursement for partsand automobiles. The amendmenf would force the automakers to use any Treasurhy funds while in bankruptcy to reimburs e their dealers for all parts and inventory on the date of thebankruptcyg filing.
Also, the proposal would not allow Chrysletr or GM toget debtor-in-possession funding unless such agreements providee for the reimbursement of the