Support is growing on Capitol Hill for a bill that would reverse General Motors’ decision to earmark about 2,400 dealers for closure, but the Detroit automaker is reportedly using some shady tactics to help sweep the measure under the rug.
According to Automotive News, at least one U.S. Senator, a dealer group and dealer representatives have accused General Motors of strong-arming dealers into signing a letter of opposition against the bill.
“Some dealers fear that GM could take action against them if they do not sign a letter of opposition” to the bill, Sen. Charles Grassley, R-Iowa, said in a letter to GM CEO Fritz Henderson. “It’s alarming to have GM corporate leaders force dealers — some who are losing everything they worked hard to build — to take an active stand against it.”
If passed, the bill would reinstate those dealers eliminated during bankruptcies at General Motors and Chrysler . GM plans to cut about 2,400 dealers nationwide while Chrysler has already eliminated 789 U.S. dealers.
The GM National Dealer Council sent out a letter for dealers to sign on July 6th that said: “I agree with the National Dealer Council’s position to NOT support the passage of HR 2743.” Several dealer groups have vowed not sign the letter, calling GM’s initiatives “heavy handed pressure tactics and veiled threats”.
GM has yet to fully respond to the accusations, but we expect more on the subject in the coming days.
