GM, Chrysler defend dealer cuts

0 Comments | USA TODAY, June, 2009 | by Jayne O''Donnell

General Motors CEO Fritz Henderson and Chrysler President James Press had to defend efforts to trim their dealer networks and other moves before the Senate Commerce Committee on Wednesday.

Chrysler has given 789 dealers until Tuesday to close up shop. General Motors has given more than 1,000 dealers until late 2010 to wind down and also is requiring dealers who want to stay to sign new agreements that many believe violate their rights. Dealers are independent retailers who have franchise contracts with the automakers.

"I don't believe that 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," said Sen. Jay Rockefeller, D-W.Va., who chairs the...