WASHINGTON, D.C. – Montana’s Congressman, Denny Rehberg, cosponsored a bill that will prevent the closure of GM and Chrysler dealerships in Montana. Rehberg is sponsoring the Automobile Dealer Economic Rights Restoration Act of 2009 (HR 2743).

            “When I voted against the auto bailout, I had major concerns that this federal power grab would ultimately hurt the economy and lead to jobs losses right here in Montana,” said Rehberg, a member of the House Appropriations Committee. “Unfortunately, now we’re seeing the power grab has led to the arbitrary closure of small businesses in Montana and the potential loss of hundreds of jobs. After being forced to pay for the massive bailouts with their hard earned tax dollars, the government is now forcing Montana car dealers and their employees to bear the burden of the mistakes of GM and Chrysler. This bill would put an end to these arbitrary closures and restore the rights of hardworking dealerships across the state.”

            The newly-formed Presidential Task Force on the Auto Industry is encouraging Chrysler to close one-fourth of its 3,150 dealerships nationwide, while GM closures could amount to 40% of its 6,300 dealerships. Several Montana dealerships and communities will be affected by the closures.

            “The Montana dealers I’ve spoken with have serious concerns over the way the Auto Task Force has handled these closures, especially when many are reporting profitable bottom-lines,” said Rehberg. “Car dealerships are often one of the largest employers in rural communities, and these job cuts are counter-productive to economic recovery efforts.”

            The Automobile Dealer Economic Rights Restoration Act of 2009 would restore the economic rights of GM and Chrysler dealers, preserve the dealers’ rights to recourse under state law, and reinstate franchise agreements in effect prior to the car companies’ bankruptcies, at the request of the dealer.