GM, Congress In Talks Over Release Of Dealer List
04 Juni 2009 - 11:04PM
Dow Jones News
General Motors Corp. (GMGMQ) and their dealers are negotiating
with U.S. lawmakers about congressional demands that the company
provide a list of dealerships slated to be shut.
Top executives at the auto maker and representatives of dealers
were in discussions Thursday with staffers from the Senate Commerce
Committee to find a compromise. Among the issues is whether the
list should be made public, a move opposed by dealers because of
the stigma associated with such a list.
"It would just be a devastating financial effect if their names
were released," GM spokesman Greg Martin said, since many dealers
would remain open through the fall of 2010. GM and the National
Automobile Dealers Association said dealers should have the option
of whether to come forward.
GM Chief Executive Frederick "Fritz" Henderson agreed during a
Senate Commerce Committee hearing on Wednesday to provide the list
to Congress. But in talks scheduled to resume Friday, the company
and congressional staffers were discussing what, if any
information, the company provided to the committee would be made
public. Committee aides were studying whether Senate rules
protecting the disclosure of proprietary information would block
such a list from being made public.
GM, which filed for bankruptcy this week, plans to close as many
as 2,600 dealerships as part of its restructuring, but many
wouldn't be closed until October 2010. Chrysler LLC, also in
bankruptcy and which plans to close 789 dealerships next week, has
agreed to provide a list to the committee.
Senate Commerce Committee Chairman John D. Rockefeller IV,
D-W.Va., and other U.S. lawmakers said they need the list to
determine the companies' rationale in choosing which dealerships to
shut. Some lawmakers have said rural areas are being
disproportionately hit by the closings and questioned whether
politics influenced the process.
Henderson and Chrysler President Jim Press testified Wednesday
that they targeted underperforming dealerships. They said the cuts
are needed to improve the value of their brands and ultimately
boost sales.
-By Josh Mitchell and Kristina Peterson, Dow Jones Newswires;
202-862-6637; joshua.mitchell@dowjones.com