WASHINGTON, D.C. – In response to concerns raised at a June 3 Commerce Committee hearing, U.S. Senator Kay Bailey Hutchison, Texas’ senior Senator, today received a letter from Chrysler President Jim Press outlining the company’s steps to protect auto dealers forced to close under Chrysler’s new business strategy.
“I have been exceedingly concerned about the impact Chrysler’s dealer closings will have on hundreds of small businesses, thousands of employees, and entire communities across
The letter to Sen. Hutchison, Ranking Member of the Senate Committee on Commerce, Science, and Transportation, addressed the following issues she raised in the hearing.
· Chrysler has committed that 100 percent of closing dealers’ inventory will be purchased at cost, minus $350 for inspection, cleaning, and transport.
· Chrysler will work with closing dealers to redistribute remaining parts inventory for 90 days, and the company will then repurchase qualified parts at an average transaction price.
· Chrysler has provided assurances that discontinued dealers will have first consideration of new dealerships if Chrysler reenters or expands operations in impacted dealers’ markets.
Sen. Hutchison’s work on behalf of Chrysler dealers began in May, when she learned that select dealerships had been informed they had three weeks to close down their businesses with virtually no assistance from Chrysler. On May 21, she introduced an amendment to deny Chrysler additional Treasury funding unless it gave dealers slated for closing adequate time to do so.
She withdrew the amendment when Mr. Press personally assured her that Chrysler was taking the appropriate measures to help automotive dealers across the country. The June 2 Commerce Committee hearing was set so that Sen. Hutchison and other committee members could hear from affected auto dealers and receive detailed explanations of Chrysler’s efforts to help the dealer community.
Click HERE for a timeline of Sen. Hutchison’s efforts on behalf of the auto dealers.
Click HERE to watch Sen. Hutchison’s statement during the Commerce Committee hearing on the General Motors and Chrysler dealership closures.
Click HERE to read the letter sent to Chrysler Dealers.
Click HERE to read the Commerce Committee letter to Chrysler and GM CEOs.
Click HERE to read the letter to Sen. Hutchison from Chrysler.