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Senate considers help for dealers

November 15, 2010

The Senate has introduced a companion bill to a House measure that would restore the state franchise rights of GM and Chrysler dealers to what existed before each company’s bankruptcy.

Senate Bill 1304 was read twice when it was introduced June 18, then referred to the Senate Judiciary Committee. It is sponsored by Sen. Chuck Grassley (R-Iowa) and has four co-sponsors.

House Resolution 2743, which shares the same short title—the Automobile Dealer Economic Rights Restoration Act of 2009—had 189 co-sponsors on June 25, but it had not moved out of a committee since shortly after its June 8 introduction.

Rep. Daniel Maffei (D-New York), who introduced the House bill, said the automakers are buoyed by taxpayer dollars and should negotiate with dealers "in a way that will help to find a soft landing for the workers and communities" of rejected dealerships.