Automobile Dealer Economic Rights Restoration Act of 2009

Robert Farago
by Robert Farago

HR 2743 IH


1st Session

H. R. 2743

To restore the economic rights of automobile dealers, and for other purposes.


June 8, 2009

Mr. MAFFEI (for himself, Mr. KRATOVIL, Mr. VAN HOLLEN, Mr. HOYER, Mr. MCMAHON, Ms. SUTTON, Mr. BARTLETT, Mr. HALL of New York, Mr. POSEY, Mr. HEINRICH, Mr. PAULSEN, Ms. SHEA-PORTER, Mr. MANZULLO, Mr. DEFAZIO, and Mr. DAVIS of Alabama) introduced the following bill; which was referred to the Committee on Financial Services


To restore the economic rights of automobile dealers, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,


This Act may be cited as the ‘Automobile Dealer Economic Rights Restoration Act of 2009’.


The Congress finds the following:

(1) Automobile dealers are an asset to automobile manufacturers that make it possible to serve communities and sell automobiles nationally.

(2) Forcing the closure of automobile dealers would have an especially devastating economic impact in rural communities, where dealers play an integral role in the community, provide essential services and serve as a critical economic engine.

(3) The manufacturers obtain the benefits from having a national dealer network at no material cost to the manufacturers.

(4) Historically, automobile dealers have had franchise agreement protections under State law.


(a) In order to protect assets of the Federal Government and better assure the viability of automobile manufacturers in which the Federal Government has an ownership interest, or to which it is a lender, an automobile manufacturer in which the Federal Government has an ownership interest, or which receives loans from the Federal Government, may not deprive an automobile dealer of its economic rights and shall honor those rights as they existed, for Chrysler LLC dealers, prior to the commencement of the bankruptcy case by Chrysler LLC on April 30, 2009, and for General Motors Corp. dealers, prior to the commencement of the bankruptcy case by General Motors Corp. on June 1, 2009, including the dealer’s rights to recourse under State law.

(b) In order to preserve economic rights pursuant to subsection (a), at the request of an automobile dealer, an automobile manufacturer covered under this Act shall restore the franchise agreement between that automobile dealer and Chrysler LLC or General Motors Corp. that was in effect prior to the commencement of their respective bankruptcy cases and take assignment of such agreements.

(c) Except as set forth herein, nothing in this Act is intended to make null and void:

(1) the court approved transfer of substantially all the assets of Chrysler LLC to New CarCo Acquisition LLC; or

(2) a transfer of substantially all the assets of General Motors Corp. that could be approved by a court after the date of introduction of this Act.

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  • Smithrobjr Smithrobjr on Jun 20, 2009

    Newsflash...miliatary bases are branches of the government, that cost money of the government. Car dealers are NOT OWNED by the factory. Dealers own the land, buildings, etc. They sell a product offered by a manufacturer. So what if they want to offer Dell & HP???? That's what this really is. Manufacturers don't want customers to shop and compare, they want dependent dealers, on one product, consumers be damned. Customers deserve better. My new favorite is Fritz Henderson telling congress they will save money when they don't have to pay for the prep of cars, or the gas fill up...huh? The prep is paid to the dealer by the manufacturer because 50 years ago Congress said that cars HAD to be prepped to make sure they were does with the CAR! Same with the gas, who sells is doesn't matter, it goes with the car.

  • DealerEmployeeNJ DealerEmployeeNJ on Jun 23, 2009

    Its a shame that some people who commented on here really have NO IDEA what Dealers mean to their communities. We are NOT owned by GM. Our Building, Land, Taxes, etc. are OWNED and PAID by the Dealer... that same dealer provides anywhere from 30-100 jobs in that community in which he/she resides. Take EACH Dealer that just GM is closing down: That is 2400 Dealers in the USA. Lets say for estimate purposes that each dealer employees 20 people in that town. That is 72,000 jobs LOST in AMERICA. Last time I checked, this was America. We need to support our local communites and KEEP jobs in America, not throw people out on their asses. The estimated proposed job loss for Chrysler & GM is approx 200,000 jobs LOST... this does not include the small businesses which these dealers support such as parts stores and local repair shops that we sell parts to. Most dealers being shut down have been family owned and operated for over 30 years... 50 years... some as long as 94 years! These are families with long time employees. IF this bill HR2473 is passed AND the Companion bill S1304 is passed, it will restore the rights of these dealers so that they can fend for themselves and SAVE their employees jobs. This website was formed by the: Committee to Preserve Dealer Rights. You can check out that website to find out how to contact your local Senators and Congressmen/Congresswomen to tell them that you support this bill. It would be an absolute SHAME that people in AMERICA would not support the potential to save HUNDREDS OF THOUSANDS OF JOBS...

  • SPPPP The little boosters work way better than you would expect. I am a little nervous about carrying one more lithium battery around in the car (because of fire risk). But I have used the booster more than once on trips, and it has done the job. Also, it seems to hold charge for a very long time - months at least - when you don't use it. (I guess I could start packing it for trips, but leaving it out of the car on normal days, to minimize the fire risk.)
  • Bader Hi I want the driver side lights including the bazl and signal
  • Theflyersfan One positive: doesn't appear to have a sunroof. So you won't need to keep paper towels in the car.But there's a serious question to ask this seller - he has less than 40,000 miles on some major engine work, and the transmission and clutch work and mods are less than 2 months old...why are you selling? That's some serious money in upgrades and repairs, knowing that the odds of getting it back at the time of sale is going to be close to nil. This applies to most cars and it needs to be broadcasted - these kinds of upgrades and mods are really just for the current owner. At the time of sale, a lot of buyers will hit pause or just won't pay for the work you've done. Something just doesn't sit well with me and this car. It could be a snowbelt beast and help save the manuals and all that, but a six year old VW with over 100,000 miles normally equals gremlins and electrical issues too numerous to list. Plus rust in New England. I like it, but I'd have to look for a crack pipe somewhere if the seller thinks he's selling at that price.
  • 2ACL I can't help feeling that baby is a gross misnomer for a vehicle which the owner's use necessitated a (manual!) transmission rebuild at 80,000 miles. An expensive lesson in diminishing returns I wouldn't recommend to anyone I know.
  • El scotto Rumbling through my pantry and looking for the box of sheets of aluminum foil. More alt right comments than actual comments on international trade policy. Also a great deal of ignorance about the global oil industry. I'm a geophysicist and I pay attention such things. Best of all we got to watch Tassos go FULL BOT on us.