Letter to White House follows decision By GM to drop Royal Buick of Tucson
WASHINGTON – U.S. Rep. Gabrielle Giffords and other members of Congress are urging President Obama to ask General Motors and Chrysler to delay the closure of several automobile dealerships.
The lawmakers’ effort comes in the wake of Friday’s announcement by GM to drop Tucson’s only Buick dealership despite healthy sales.
In their June 8 letter to the president, Giffords and 115 colleagues question the criteria used to determine which dealerships should be closed as part of the auto companies’ attempts to restructure themselves and emerge from bankruptcy.
“It is our view that the market should make these decisions rather than leaving it up to the manufacturers whose poor leadership contributed to their demise,” they write. “We are concerned
that manufacturers are closing profitable dealerships to circumvent current contracts which could require expensive buy-outs.”
The lawmakers note that the dealership closures come as the American economy is shedding jobs at an alarming rate and that more than 100,000 jobs would be put at risk by the closures.
“The dealerships, and their more than 1 million employees, form personal relationships with customers that often contribute to brand loyalty and will be key to General Motors’ and Chryslers’ recovery following this economic downturn,” they tell the president. “While we understand the desire to reduce the number of unprofitable dealerships, no one has yet sufficiently explained the need to close profitable dealerships.”
According to published news reports, Royal Buick of Tucson has the second-highest sales volume for Buicks in 14 Western states and just last week received a Buick Division award for sales and service excellence in 2008.