Providers and Administrators in blue logo
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

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
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 →
Ad Loading...
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 →