Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

House Approves Compromise for GM, Chrysler Dealers

December 11, 2009
2 min to read


The House has approved a compromise plan to give General Motors and Chrysler dealers an appeals process to keep their showrooms open, reported The Associated Press.


A $1.1 trillion spending bill approved Thursday includes provisions to give 789 Chrysler dealers closed in June and more than 1,350 GM dealers expected to be shut down next year an opportunity to challenge the automakers' decisions.

Ad Loading...


GM and Chrysler have attempted to shed dealerships as part of their government-led bankruptcies. But the moves have riled up members of Congress, who have received numerous complaints from dealers being shut down.


"We need to make sure that the companies give a fair consideration to dealers that have put a lot of their time, sometimes generations, money, effort and talent into building their dealerships," said House Majority Leader Steny Hoyer, D-Md.


General Motors Co. and Chrysler Group LLC said last week they would reconsider decisions to close the dealers as part of a compromise plan including face-to-face reviews with dealerships and binding arbitration for dealers who challenge the decisions.


But dealers and key lawmakers pushed back, saying the GM and Chrysler approaches wouldn't do enough. The compromise developed by Hoyer and Dick Durbin of Illinois, the Senate majority whip, requires the arbitration panels to consider a number of circumstances, giving some car dealerships a better chance of surviving.


The arbiter would weigh issues such as the economic interests of the terminated dealer, the company and the public, the dealer's profitability during the past four years and conditions that could have led to a poor sales performance, including natural disasters and a poor local economy.

Ad Loading...


"We do not want to hurt the auto manufacturers in their restructuring efforts moving forward, but auto dealers are a big part of our local communities and national economy, and they should be treated fairly," said Rep. Dan Maffei, D-N.Y.


The spending plan needs to be approved by the Senate. Durbin said he does not expect the dealer provisions to be changed.


GM is working on a "resolution that balances the interests of GM and its dealers," the company said in a statement.

More Industry

Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →
Bar graphic showing car segment activity for the previous week
Industryby StaffMarch 31, 2026

Black Book: Weekly Market Update

Last week's wholesale auction activity was stable, though buyers exercised selectivity as they focused on certain segments.

Read More →
Ad Loading...
gray background with white text that says Dealer Debrief 03/25/2026 with Lauren Lawrence. picture of a white woman (Lauren) with red hair
Industryby Lauren LawrenceMarch 25, 2026

Dealer Debrief: Safety, Supply & Partnership

In this week's Dealer Debrief, host Lauren Lawrence covers a new safety assessment, current inventory issues, and a new payables process for dealerships.

Read More →
Line chart depicting retail used-vehicle auction volume
Industryby StaffMarch 24, 2026

Black Book: Weekly Market Update

Both conversions and values were up last week, though business was spotty depending on the segment in question.

Read More →
red battery-electric vehicle using a Tesla Supercharging station
Industryby Lauren LawrenceMarch 24, 2026

Stellantis Expands Charging Network

Five of its brands now have greater access to battery-electric vehicle charging through Tesla’s Supercharger network across North America.

Read More →
Ad Loading...
blue subaru crosstrek in city with Save with SUVS text and Providers and Administrators logo
Industryby Lauren LawrenceMarch 17, 2026

Safety Drives Insurance Rates

Sixteen out of the 20 cheapest vehicles to insure in 2026 are SUVs, according to CarInsurance.com, largely because of their safety features and lower repair costs.

Read More →
Close-up photo of the front of a new-looking white car
Industryby Hannah MitchellMarch 17, 2026

New-Vehicle Shoppers Get Some Relief

Overall conditions in February tipped slightly in consumers’ favor as prices stayed high, granting a reprieve of sorts just before the war on Iran commenced and started to reverse the welcome trend.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Ad Loading...
text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →