Congressmen push feds to spare dealerships
Sixty-eight U.S. congressmen, including Batavia Democrat Bill Foster, and Illinois Republicans Aaron Schock and John Shimkus, released a letter Monday that asked the Treasury Department's Auto Task Force to reverse the closing of GM and Chrysler auto dealerships.
The letter, sent late Friday, said that the nationwide efforts by GM and Chrysler would put about 150,000 people on the unemployment rolls just as the economy has been struggling to recover. The congressmen are seeking to learn the rationale for revoking certain franchises, including dozens around Illinois.
In addition, U.S. Senator Dick Durbin on Monday sent separate letters to Chrysler and to GM, asking them to reconsider the closure of their dealerships.
While auto dealer associations were happy for the efforts, they wondered if it might be too little, too late.
"Where were they back in March when all of this was taking place?" Jerry Cizek, president of Oakbrook Terrace-based Chicago Automobile Trade Association, said Monday.
Last week, Chrysler told nearly 800 dealerships nationwide to close by June and GM told about 1,100. dealerships to close by late 2010. More such announcements are expected. The corporations cited low performance for the consolidation while they each retrench amid massive losses.
Durbin's letters to each corporation stressed the importance that dealerships played in their communities, including as an employer, tax payer and supporter of local community activities and organizations.
"Clearly, closing dealerships will translate into job loss and an economic hit to the region," Durbin wrote. "The last few years have been challenging for cities and rural communities across Illinois. The unemployment rate in the state is 9.1 percent. The state lost 51,600 jobs in April. Closing Chrysler dealerships in Illinois will only contribute to this bleak climate."
The congressional letter said auto dealerships, which employ about 50 workers each, are among the largest private sector employers nationwide. "In addition, many auto dealerships are minority owned and have traditionally provided strong local community support," the letter said.
Foster's staff said he signed onto the letter because some auto plants in North Aurora and St. Charles as well as dealerships in DeKalb have been affected. Dealerships and citizens contacted him for help to reverse these decisions to close, said spokeswoman Shannon O'Brien.
"He's a scientist and a businessman, and he wants to get more facts about why this has happened," said O'Brien. "We need to really know why some are closing and others are not."
Other congressmen were not part of the letter. Calls to Congressmen Judy Biggert and Mark Kirk were not immediately returned. The press secretary for Congressman Peter Roskam declined to comment. A spokesman for Melissa Bean could not immediately comment.
Calls and e-mails to the Auto Task Force spokespeople were not returned.
Jerry Cizek said his association and others consistently told congressmen what the economic impact would be if all of these dealerships closed. The calls and letters just attracted form letters back from congressmen, he said.
"We told them all along this is what the impact would be on the people who vote for them," Cizek said.
The National Automobile Dealers Association in Washington, D.C., was happy that government leaders were eager to save dealerships marked for closure.
"Hopefully, the Auto Task Force will realize that closing that many dealerships is a mistake," said association spokesman Bailey Wood. "Let's just hope they can create some type of soft landing for those who do close."