Obama's Auto Task Force Putting Dealers Out of Business

Posted: May 21, 2009 3:02 PM
Small businesses are the backbone of our nation's economy, yet the Obama Administration Auto Task Force is planning to eliminate more than 3,000 Chrysler and GM auto dealerships. Sadly, these closings are expected to put more than 150,000 people out of work, devastating many small towns.

These aren’t necessarily unprofitable dealerships.  In fact, many of them have been doing quite well even in the economic downturn, yet the Administration finds it necessary to close them down. This is unprecedented and simply astonishing, as neither the Administration nor any government official should have any authority over the management of private companies.

My staff and I have been in close contact with the National Automobile Dealers Association (NADA), which represents auto dealers’ interests in Washington.  NADA has hired a firm to represent the legal interests of those auto dealers that have been chosen by the Task Force to close.  Any such auto dealer should call 703-821-7000 for more information.  I shared that information with several Chambers of Commerce throughout the Sixth District of Minnesota so that businesses that are hurting or worried can look for concrete help.  And I urge you to get it to anyone you know that might need such assistance.

The Administration’s Car Czar has put theory above real hard-working Americans, while simultaneously standing rock-solid American legal principles on their head.  If he can throw a dart at a map and determine which car dealers don’t deserve to be open, what business is next?  Will the drive for socialized medicine mean that a “health czar” in Washington will determine which hospitals can remain open or which doctors can keep their practices?   The precedents we are setting are scary and we must consider them carefully now before the consequences gain too much momentum to stop.