Paulsen Works to Protect Minnesota Auto Dealership Jobs
Co-sponsors bill to restore franchise agreements, fight arbitrary dealership closings

FOR IMMEDIATE RELEASE: June 9, 2009

CONTACT: Luke Friedrich (952) 405 -8510 / Andrew Foxwell (202) 225-2871

Washington, D.C. – In an effort to protect local auto dealership jobs in Minnesota, Congressman Erik Paulsen (MN-03) is cosponsoring the Automobile Dealer Economic Rights Restoration Act, which requires Chrysler and GM to continue to honor their previous commitments to local auto dealers.  Specifically, the bill would allow auto dealers to have their franchise agreements reinstated, while also protecting their right to recourse under state law.  Paulsen is an original co-sponsor of the bill, which was introduced late yesterday and has the support of both Republicans and Democrats, including House Majority Leader Steny Hoyer. 

“Picking winners and losers by arbitrarily closing local dealerships without rhyme or reason is simply wrong,” Paulsen said.  “Moreover, these small businessmen and women are being given no recourse from these closings. We need this bipartisan legislation to protect Minnesota jobs and give our local dealers an opportunity to keep the businesses they’ve worked so hard to build.”

Due to bankruptcy laws, both GM and Chrysler are currently allowed to bypass state franchise laws, of which Minnesota has some of the strictest in the nation.  Franchise laws protect local dealers from arbitrarily closings, among additional protections, and this bill would reinstate those rights in order to combat the scheduled and additional closing of local dealerships throughout Minnesota and across the country. 

The Automobile Dealer Economic Rights Restoration Act will:

• Restore the economic rights of General Motors and Chrysler car dealers as they existed prior to each company’s bankruptcies.

• Preserve General Motors and Chrysler car dealers’ rights to recourse under state law.

• At the request of an automobile dealer, require General Motors and Chrysler to reinstate franchise agreements in effect prior to each company’s bankruptcies.

For information on Congressman Paulsen’s work, please visit www.paulsen.house.gov.