Dealership Ressurections
GM and Chrysler tried to reduce their dealer network for years only to be stymied by state politicians. The bankruptcy and takeover by the feds allowed the companies to downsize their networks. Now, federal politicians are resuscitating closed dealers.
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From USA Today:

When General Motors and Chrysler emerged from bankruptcy reorganization this year, they had new owners. The governments of the United States and Canada took majority control of GM, with a retirement fund and former creditors holding shares as well. Italian automaker Fiat and a union-affiliated retiree fund became the main owners of Chrysler.

These new owners — particularly taxpayers — are not in it for charity. They should expect a return on their investment.

But don't tell that to Congress. A bipartisan caucus of lawmakers has decided instead to reward an influential constituency: car dealers. A provision in a pork-laden spending bill headed for President Obama's desk would give dealers eliminated in Chapter 11 a chance to reopen their cases through binding arbitration.  More here.

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