Rep. Kilroy Calls For Auto Franchise Trimming Moratorium

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Yesterday Chrysler notified dozens of Ohio dealers that their franchises would be terminated. Today General Motors is doing the same thing. Ohio Congresswoman Mary Jo Kilroy is calling for a one-month delay in the terminations.

In a letter to a treasury official, Democrat Representative Mary Jo Kilroy says closed door, back room decisions to shut down dealerships are not based on credible evidence.

“I have asked the auto industry task force to give us a good reason why this would be a good thing for American auto, for the American economy or for central Ohio and in the meantime to put a moratorium on these dealership closings,” Kilroy says.

The franchise terminations have angered some dealers. George Byers of Byers Chevrolet is adamant that General Motors cannot terminate franchises because, he says, the corporation is not in bankruptcy.

Another GM dealership head, Chris Haydocy, says he’s breathing a sigh of relief because his franchise won’t be pulled. But he says

“The whole thing reeks. Never in the history of the United States has a task force and a manufacturer and a bankruptcy judge decide to arbitrarily shut down thousands of small businesses,” Haydocy says. “It’s a malicious attack on our basic freedoms.

It’s not yet known how many Ohio dealers will lose their affiliations with General Motors.