Was Audit Critical of Dealer Cuts Delayed? Dealer Advocates Wonder
WASHINGTON - Dealer advocates are questioning whether a federal audit that challenged dealership cuts by General Motors and Chrysler was delayed until after arbitration hearings were completed, Automotive News reported.
The report by the inspector general for the Troubled Asset Relief Program was released Sunday, after the last of more than 100 dealer arbitration hearings was completed Wednesday, July 14. The federal audit began a year ago.
Two dealer advocates said they had had extensive contacts with audit staff, which suggested that the report was on the verge of being released at least six months ago. A third advocate said an auditor told him in May that a draft was being circulated within the administration.
The U.S. Treasury Department's brief response to the draft was sent Friday, July 16.
“This seems like too much of a coincidence to be a coincidence,” said Tammy Darvish, a co-leader of the Committee to Restore Dealer Rights, a rejected-dealer group.
Dealer lawyers said the 33-page report would have provided ammunition for them to use in seeking reinstatement for rejected dealerships.
The inspector general's office said today that the timing of its report was a coincidence and that no decision was made to withhold the report until after arbitrations were completed.
“It's impossible for a deadline to have been breached on this because we didn't set a deadline for it,” Kris Belisle, a spokeswoman for the inspector general, said in an e-mail. “We will sometimes predict a rough time frame, but always with the understanding that nothing is firm. We did not release this report earlier for the simple reason that it was not yet ready.”
Belisle declined to comment on dealer contacts with audit staff.
More Industry

Honda Embraces Hybrid Fever
The automaker plans a new Ohio factory, along with investments in existing U.S. and Canadian plants, to significantly boost hybrid production here.
Read More →
Dealerships Must Show Up Where It Matters
How car buyers find your dealership has fundamentally changed. New evidence reveals the importance of your presence on social media, Google search, and large language models.
Read More →
CPO Sales Could Take Off in the Right Conditions
A recent Cox Automotive consumer survey reveals the size of an undertapped market for the vehicle segment given affordability pressures.
Read More →
Global Consumer Trends Diverge
Price remains a top consideration for U.S. car buyers, and they are the most brand-loyal consumers to established automakers, according to a new survey.
Read More →
Badger State Dealership Gets New Owner
The longtime southern Wisconsin store moved from one area auto group to another, keeping the business in Dairyland.
Read More →
The Cycle of Negative Equity
Third-quarter data shows consumers still rolling over debt and stretching loan terms, raising their risk of remaining underwater.
Read More →
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 →
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 →
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 →
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 →