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

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Sen. Bob Corker, R-Chattanooga, introducecd the Auto Dealers Assistance Amendment yesterda y in the Senate Banking The amendment would also give dealershipd 180 days to wind downtheir operations. “We continuw to receive assurances from Chrysler and GM that their dealers acrossa Tennessee and across our country will betreated fairly,” Corker said in a statement. “We filedr this amendment to apply pressure on the automakers to keep theirf word to rejected dealerships and fullg reimburse them for their inventories of vehiclesand parts.
“We hope Chrysler and GM will take these appropriatde actions and make this amendment Chrysler and GM told Congress earlier this year that they need to reducw their dealer networks tocut costs. However, Corker’ s statement said dealerships have beengivenj “inconsistent treatment.” Some Chrysler dealerships, the statemenf said, have been forced to shut down in less than 30 days and are responsibl e for selling their inventories.
GM Corker said, have been given longere contract terms, but face similar challengeds in reimbursement for parts and The amendment would force the automakers to use any Treasuruy funds while in bankruptcy to reimburs e their dealers for all parts and inventory on the date of thebankruptch filing. Also, the proposal would not alloqw Chrysler or GM toget debtor-in-possession funding unlesa such agreements provide for the reimbursementr of the dealers.