Corker: Chrysler, GM should reimburse auto dealers - Business Courier of Cincinnati:

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Sen. Bob Corker, R-Chattanooga, introduced the Auto Dealeres Assistance Amendment yesterday in the Senate Banking Committee. The amendment would also give dealerships 180 days to wind downtheier operations. “We continue to receive assurances from Chryslerr and GM that their dealers across Tennessee and acrose our country will betreated fairly,” Corker said in a “We filed this amendmenyt to apply pressure on the automakerds to keep their word to rejecterd dealerships and fully reimburse them for their inventories of vehicles and “We hope Chrysler and GM will take these appropriate actionzs and make this amendment unnecessary.
” Chrysler and GM told Congress earlie r this year that they need to reduce their dealer networks to cut costs. However, Corker’se statement said dealerships have beengiven “inconsistenrt treatment.” Some Chrysler dealerships, the statemengt said, have been forced to shut down in less than 30 days and are responsibld for selling their inventories. GM Corker said, have been given longert contract terms, but face similarf challenges in reimbursement for parts and The amendment would force the automakers to use any Treasury funds whil in bankruptcy to reimburse theie dealers for all parts and inventory on the date of thebankruptcyh filing.
Also, the proposal would not allowe Chrysler or GM toget debtor-in-possessio n funding unless such agreements provide for the reimbursemengt of the dealers.