Nation?s Auto Dealers Fight to Slow Store Closings

WASHINGTON, D.C. — With the threat of store closings looming, dealers across the country are taking action. 

On Wednesday, more than 100 dealers met with House and Senate members to encourage them to ask President Obama?s auto task force to slow down plans to reduce General Motors? and Chrysler?s dealer networks.

John McEleney, chairman of the National Automobile Dealers Association, which organized the dealer fly-in, called the proposed rapid cuts a ?bad idea? that would put thousands of residents out of work and hinder the country?s efforts to climb out of a recession.

?This would have adverse affects on the auto industry and hurt an already struggling U.S. economy,? he stated. ?It would result in another 200,000 Americans losing their jobs. State and local governments will lose millions of dollars in auto sale tax revenue that is essential for economic recovery.?

McEleney emphasized that the association?s primary problem is not with dealer consolidation, but with the accelerated time frame for dealer closings.

?Keep in mind that dealers are not a cost center for their manufacturers,? McEleney said. ?Dealers are an automaker?s main source of revenue. Cutting dealers at this time would do absolutely nothing to make either GM or Chrysler more viable.?

NADA are also scheduled to meet with the president?s task force today in Washington, D.C.