LOL. Awesome.
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The U.S. House approved legislation Thursday to force General Motors Co. and Chrysler Group LLC to reinstate as many as 3,200 dealers the car makers cut as part of their government-backed bankruptcy reorganizations.
The measure, if it becomes law, would disrupt the Obama administration's efforts to revamp the U.S. car industry, and is an indication of the role Washington's political machine will play in how the companies are run.
It's also a snub from Congressional Democrats to the White House, which strongly opposed the measure. This week, the White House stopped short of threatening a veto, but warned of the harm the bill would cause.
The provision, attached to a must-pass spending bill, forbids the administration from giving bailout funds to the auto makers unless they restore dealers' rights under state franchise laws.
The measure could effectively force GM and Chrysler to reopen dealerships or to increase the compensation provided to rejected dealers. The vote was 219-208.
Chrysler last month closed 789 dealers. GM has said it will close about 2,400 dealerships by October 2010, giving dealers the option to remain open until then to wind down their operations.
Efforts to negotiate a settlement between GM and the dealers appeared to break down this week, with GM accusing dealers of not acting in good faith. "We're at the table with Congress and we hope that the dealers decide to join us," GM spokesman Greg Martin said.
Bailey Wood, a lobbyist for the dealers, couldn't be reached for comment after the vote.
The Senate is crafting its own version of the bill and support there for the dealers is less certain. Senate Majority Leader Harry Reid, (D., Nev.), said this week the legislation wasn't a top priority. The House and Senate would have to resolve any differences before sending the spending bill to the president.
http://online.wsj.com/article/SB124779852293856027.html