P&A Providers & Administrators
MenuMENU
SearchSEARCH

Congressman Wants Obama to Suspend GM Dealer Cuts

October 19, 2010
2 min to read


WASHINGTON - The Obama administration should ask General Motors to suspend the 500 dealership terminations it plans Oct. 31 until a federal investigation of dealer cuts is completed, a U.S. congressman said.


Rep. Steven LaTourette, R-Ohio, said the investigative findings of the Special Inspector General for the U.S. Troubled Asset Relief Program could come too late for the GM dealerships scheduled to be closed, reported Automotive News.

Ad Loading...


The inspector general's office, headed by former federal prosecutor Neil Barofsky, has not said when it would complete its investigation of dealer cuts by the administration, GM and Chrysler.


“It's like someone's in prison and the DNA that would prove his innocence is hidden,” LaTourette said in a phone interview today. “Once a dealer is shut down, it's difficult if not impossible for him to get back on his feet.”


LaTourette's advocacy for auto dealers has proven effective in the House. Last year he introduced a bill to reverse more than 2,000 dealer terminations during GM's and Chrysler's bankruptcies.


LaTourette's bill passed the House but stalled in the Senate. It was a precursor to the dealer-arbitration bill that eventually became law in December.


He said he plans to join with Cleveland-area dealers soon to call formally for administration action. The U.S. Treasury's ownership of 61 percent of GM enables it to secure the automaker's cooperation, the lawmaker said.

Ad Loading...


GM spokesman Greg Martin declined comment. Treasury spokesmen did not respond to requests for comment.


About 500 GM dealerships that were tagged for termination last year will see their sales and service agreements expire Oct. 31, GM spokeswoman Ryndee Carney said.


These dealerships will not be allowed to sell new GM vehicles or perform warranty service, she said.


There were 5,023 active GM dealerships as of Sept. 30, Carney said.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →