Congressman Murphy hails passage of Automobile Dealer Economic Rights Restoration Act language by House of Representatives

(Washington, DC) – Congressman Patrick Murphy (D- 8th District) joined Fred Beans and Beth Beans Gilbert to announce House passage of the Automobile Dealer Economic Rights Restoration Act as part of H.R. 3170, the Financial Services and General Government Appropriations Act. The bipartisan legislation will help save jobs and keep vital local businesses across the country afloat by ensuring that GM and Chrysler reinstate dealerships’ rights. For the dealerships that were carried through bankruptcy, the legislation additionally requires GM and Chrysler to reinstate the terms of the dealerships’ original franchising agreements. Fred Beans and Beth Beans Gilbert are the owner and vice president, respectively, of the Fred Beans Family of Dealerships. Fred Beans was ordered to wind down operations of his Buick-GM-Pontiac Limerick facility last month, jeopardizing the jobs of the nearly 50 employees who work there, as well as 1500 others who work at the Fred Beans Family of Dealerships facilities across Pennsylvania.

“This legislation helps protect jobs, helps small businesses by restoring GM and Chrysler dealerships that serve as important job-creators in our communities, and benefits consumers”, said Rep. Patrick Murphy. “Fred and Beth have been fierce advocates not only for their employees, but for hundreds of thousands of employees across the country. We’re committed to saving these jobs.”

“As a businessman, I’m deeply concerned about my 1500 employees in Southeast Pennsylvania”, added Fred Beans. “Protecting their jobs matters to their families and to our community, and GM hasn’t provided any explanation as to how closing good dealerships like ours restores them to profitability.”

As part of the restructuring agreement developed with the Automobile Task Force, GM and Chrysler severed franchise agreements with dealers across the country, stripping away protections afforded those dealers by state franchising laws under bankruptcy funded by the federal government.  By closing more than 2,000 dealerships across the country, the National Automobile Dealers Association estimates that more than 100,000 jobs will be lost.

For Immediate Release, July 17, 2009
Contact: Kate Hansen, (202) 225-4276