P&A Providers & Administrators
MenuMENU
SearchSEARCH

Top House Republican Calls on Obama to Suspend GM Dealer Cuts

October 25, 2010
3 min to read



The House's top Republican called on the Obama administration to suspend plans to close 500 General Motors Co. dealerships this week until a federal investigation of dealer cuts has been completed, reported Automotive News.


House Minority Leader John Boehner of Ohio joined another Republican lawmaker from the state, Rep. Steven LaTourette, in sending an Oct. 22 letter to the U.S. Treasury Department asking it to intercede with GM.

Ad Loading...


“As the findings of this investigation may shed much-needed light on the proceedings affecting hundreds of dealerships nationwide, we believe it is necessary to thoroughly analyze its results before continuing with the closures of hundreds of dealerships,” the joint letter said.


500 dealers at stake


Boehner stands to replace Rep. Nancy Pelosi, D-Calif., as House speaker if Republicans take control of the chamber in the Nov. 2 congressional elections.


About 500 GM dealerships that were tagged for termination last year as part of GM's bankruptcy proceeding will see their sales and service agreements expire Sunday, Oct. 31. The federal government owns 61 percent of the automaker.


GM, in an e-mailed statement, said it has no plans to extend the wind down agreements' deadlines with dealers.

Ad Loading...


"GM and its dealers have made significant progress over the last several months with a clear focus on selling great cars and trucks and providing a superior retail experience," the statement said.


"An extension would only divert our collective attention at a critical time and would ignore the independent decisions of arbitrators and individual settlement agreements between GM and its dealers."


Treasury spokesman Mark Paustenbach declined to comment.


The Office of the Special Inspector General for the U.S. Troubled Asset Relief Program has said it is investigating possible illegal misconduct in more than 2,000 GM and Chrysler dealer terminations by the automakers and the administration.


The investigation is a follow-up of a July audit performed by the office, headed by former federal prosecutor Neil Barofsky.

Ad Loading...


Barofsky's office has not said who it is investigating or what specific actions are involved. Nor have investigators said when they expect their work to be completed.


Doubts about savings


The audit raised doubts about the automakers' estimates of cost savings from the dealer cuts. It also expressed concern about GM's lack of documentation on its decision-making process for dealer cuts and the company's deviation from its stated criteria for dealer terminations.


LaTourette had scheduled a 1 p.m. news conference today in the Cleveland area with several auto dealers, including Alan Spitzer, a leader of a group of rejected dealers called the Committee to Restore Dealer Rights.


Last year, LaTourette was the first to introduce a bill to reverse the 2,000 dealer terminations. The legislation, which Spitzer's group pushed, ultimately led to a law setting up dealer arbitration.


More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →