Corker: Chrysler, GM should reimburse auto dealers - South Florida Business Journal:

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Sen. Bob Corker, R-Tenn., introduced the Auto Dealerws Assistance Amendment yesterday in the SenateBankinyg Committee. The amendment would also give dealerships 180 days to wind downtheier operations. “We continue to received assurances from Chrysler and GM that theirr dealers across Tennessee and across our country will betreaterd fairly,” Corker said in a “We filed this amendment to apply pressure on the automaker to keep their word to rejected dealerships and fully reimburse them for thei inventories of vehicles and We hope Chrysler and GM will take thes appropriate actions and make this amendment unnecessary.
” Chrysler and GM told Congress earlier this year that they need to reducse their dealer networks to cut costs. However, Corker’s statement said dealershipss have beengiven “inconsistent treatment.” Some Chryslerr dealerships, the statement said, have been forcerd to shut down in less than 30 days and are responsiblew for selling their inventories. GM dealers, Corker have been given longer contract but face similar challenges in reimbursement for parts and The amendment would force the automakerzs to use any Treasury funds whilw in bankruptcy to reimburse their dealers for all parts and inventor y on the date of thebankruptcy filing.
the proposal would not allow Chryslerf or GM toget debtor-in-possession funding unless such agreementz provide for the reimbursement of the dealers.