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NADA demands dealer closings reconsideration

November 15, 2010

The National Automobile Dealers Association is imploring Congress, the Obama administration and two domestic automakers to reexamine the decisions to close nearly 2,000 GM and Chrysler dealerships.

"It is reckless for Chrysler, with the approval of the auto task force, to shut down almost 800 dealerships with barely more than three weeks notice and then refuse to buy back vehicle and parts inventories," the NADA said in a May 21 statement. "Forcing these dealers to liquidate their vehicle inventory and parts supplies before June 10, and requiring them to lay off their employees in a careless and disorderly manner will cause additional economic harm both locally and nationally."

The NADA wants the Obama administration and the automakers to ensure that affected dealerships and their employees have enough time to properly close their businesses and find new jobs.

"Furthermore," the NADA statement added, "these forced closings will cause a ripple effect through the economy that will make the nation’s overall recovery substantially more difficult.

"The dealerships being shuttered represent more than 100,000 jobs as well as billions of dollars in sales tax revenues for the towns, cities and states."