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Conyers Praises Compromise on Auto Dealer Agreements

Congressman John Conyers

For Immediate Release
December 11, 2009
Contact: Nicole Triplett

Rep. John Conyers (D-Mich.), Chairman of the House Judiciary Committee, applauded the compromise legislation concerning dealer terminations included in the end of the year appropriations bill.

"The language approved by the House yesterday takes into account the interest of both manufacturers and dealers and develops an arbitration process that will serve the interests of both parties. Just as manufacturers need a strong and robust dealer network, dealers are critical parts of the distribution chain and important economic actors in their local communities, offering hundreds of thousands of jobs. The compromise language takes the needs of both parties into account and will benefit Michigan and the nation as a whole."

The compromise language, which passed the House by a vote of 221 to 202 will be taken up by the Senate shortly. The key features of the legislation include:

  • A requirement that covered (TARP-funded) manufacturers provide information to affected dealerships regarding the specific criteria used to terminate, not continue, or not renew their dealerships.
  • An option for covered dealerships to elect to arbitrate using a neutral professional arbitrator selected by the parties or an arbitration association.
  • A neutral decision by the arbitrator on the dealership’s franchise, based on consideration of all relevant information and a weighing of the economic interest of the covered dealership, the economic interest of the covered manufacturer, and the economic interest of the public at-large, given the taxpayer’s substantial financial investment in covered automobile manufacturers.
  • A preservation of any legally binding agreements based on a voluntary negotiation between a manufacturer and a dealer, whether acting individually, as a group, or through an organization acting on behalf of one or more dealerships.

 

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