North Dakota Delegation Warns of Serious Impact from Dealership Closings

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Lawmakers Ask President to Justify Shut Down of Hundreds of Auto Dealerships

May 22, 2009 -- Washington – Senators Kent Conrad and Byron Dorgan and Congressman Earl Pomeroy today expressed serious concern about how the closing of Chrysler and General Motors dealerships will impact North Dakota and other rural states.

In a letter to President Obama the delegation requested that the Administration’s Auto Task Force provide more transparency and justification about the decision by the auto companies to shut down hundreds of dealerships, especially those in rural America. The delegation noted the closures could lead to additional hardships for rural auto owners, who will have to travel even further to get their vehicles serviced.

“Closing dealerships in North Dakota will mean many of our constituents will have to travel an additional 50 miles or more for warranty work or if their vehicles are recalled. Moreover, many of these local GM or Chrysler dealers are the largest private employers in the rural communities they serve,” the delegation wrote. “We understand that further thinning of the dealer ranks through normal market and other forces is inevitable. However, Chrysler and GM ought to take into account the impact that closing dealerships will have on rural communities.”

Chrysler has announced plans to terminate franchise agreements with close to 800 dealerships across the United States, including 7 out of the 22 dealerships in North Dakota. GM announced that it would close 1,100 dealerships nationwide.

“Many of the dealerships that have been slated for closure have loyally served Chrysler and GM for decades. These dealers have worked hard to promote Chrysler and GM products in their communities, and now they believe that their investments have not been given due consideration,” the delegation writes.

Source: Senator Kent Conrad