Simpson Fights Auto Dealership Plan

Press Release

Simpson Fights Auto Dealership Plan

Idaho Congressman Mike Simpson is urging President Barack Obama and Treasury Secretary Timothy Geithner to put an end to the ongoing government-sponsored destruction of privately-owned automobile dealerships in Idaho and across the country.

In letters to President Obama and Secretary Geithner, Simpson expressed his concern with the actions of automobile manufacturers and the Department of Treasury's Automotive Task Force in ordering closures.

"I am deeply troubled by talk of dealer network restructuring. Automobile dealers in my home state of Idaho, and across the country, operate at NO COST to the automobile manufacturers. Rather, the vast dealer networks that are set up across America, in communities both large and small, are integral to any attempt to return manufacturers to profitability in the future," wrote Simpson.

Simpson also criticized the arbitrary nature of the closures and stressed the market should determine which dealerships have to close their doors.

"Sadly, the contraction of automobile dealers in Idaho, and across the country, has already begun. In Idaho alone, fully eight percent of franchised auto dealers have closed since January 2007 and more are certainly going to fail over the next year. Rather than accelerate this cycle through artificial and arbitrary means, the federal government ought to let the marketplace determine which dealerships close and which remain in business," wrote Simpson.

In closing, Simpson asked the President and Secretary Geithner to stop the action of the auto manufacturers. "I sincerely hope that you will see the lack of wisdom in forcibly taking away the dealership rights of people who have done nothing to merit such a drastic action and act to stop the automobile manufacturers from unilaterally restructuring their dealer networks," wrote Simpson.

Simpson also cosigned two additional letters with several of his Congressional colleagues opposing attempts to unilaterally restructure dealer networks.

Copies of Simpson's letters are available upon request

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