As many West Virginians know, auto dealers are critical to the local economy. They are an essential part of our tax base. They sponsor youth softball teams, hold fundraisers for worthy causes, donate cars to schools, and are an important part of the fabric of our towns.
Pete Lopez is one of those loyal dealers. Soon after Chrysler announced its plans to terminate 789 franchises nationwide, I spoke with Pete, who had just learned that the franchise agreement for his dealership in Roane County is on the chopping block.
He was devastated and filled with anxiety. In a flash, the work he is so proud of and the economic security of his employees are in serious jeopardy. And compounding this news, Pete learned just a few days later that GM plans to terminate his other dealership, putting even more of his workers at risk of losing their jobs.
Sadly, this story is not unique to Pete Lopez. It is echoed throughout West Virginia and across the country – as nearly 2,000 dealerships are closing and more than 100,000 jobs are at risk.
We have to do better. We need to protect our dealers from being saddled with excess inventory, find ways to reduce job losses, and make sure loyal customers have access to the quality service they’ve come to count on.
Pete’s two dealerships are located on Main Street in Spencer. And I was proud to welcome him to testify before our Committee so Chrysler and GM could see the face of Main Street – the real people their restructuring plans are affecting.
I understand the need for Chrysler and GM to reorganize. But I absolutely don’t believe companies should be allowed to take taxpayer funds for a bailout, and then leave local dealers and their customers to fend for themselves with no real notice and no real help.
We are talking about dealers who have invested everything they have in their dealerships that rely on these franchise agreements – people who have contributed to their communities, and whose families in many cases have been selling automobiles for decades.
We are also talking about customers who purchase cars locally so they can rely on their town’s dealer for service and vehicle support – people who are working as hard as they can to make a living in this challenging and difficult economy.
Chrysler is eliminating 40 percent of its dealerships in West Virginia, and I have heard that GM has already terminated 30 percent, which could grow even higher as GM announces additional terminations. This means some customers will have to travel much further distances to get their cars serviced under warranty, and such a dramatic decrease in dealerships could mean less competition in the new vehicle market.
My concerns run deep when it comes to the economic viability of Main Street, West Virginia. I will never stop fighting to see that hard working families get a fair shake.
That’s why I pushed Chrysler and GM officials about the insufficient length of time some dealerships have been given to close, the inability of terminated dealerships to sell their inventory, ways to reduce job losses by helping dealerships maintain used vehicle businesses, and how to make sure consumers have access to the quality service they’ve come to count on.
I pushed for answers, and I am pushing for more. I am asking the companies to address a number of issues – such as buying back unsold inventory, giving profitable dealerships a chance to re-enter the market when possible, and protecting consumers’ access to service in rural areas.
These are the most challenging economic times we’ve faced in decades – and we all have to come together and do everything we can to make sure dealers, employees and consumers are treated right.





