Auto Bankruptcy Hearing Day 2: Chrysler/GM Execs, Auto Dealers, State Officials, Consumers Testify

Today’s hearing featured testimony from: Ms. Louann Van Der Wiele, Vice President & Associate General Counsel of Chrysler; Mr. Michael Robinson Vice President and General Counsel General Motors Company; Mr. Richard Mourdock Indiana State Treasurer; Mr. Jeremy Warriner who claim against Chrysler was thrown out because of the companies bankruptcy on April 30th; and auto dealers from Maryland, Rhode Island, New York and Texas. More information about the witnesses is available from Congressman Cohen’s office.

To view Congressman Cohen’s opening remarks click here .

Congressman Cohen’s opening statement, as prepared for delivery follows:

“….Yesterday, I raised concerns about the impact of the Chrysler and General Motors bankruptcies on automobile dealers and tort claimants. We heard responses from the Administration’s Auto Task Force on these and other issues. Today, we will have the perspectives of Chrysler and G.M. as well as other interested parties.

“The car dealers contend that G.M. and Chrysler selected dealerships for termination using an arbitrary selection process. Additionally, I am concerned about the impact of these closures on minority dealers, who I fear will suffer disproportionately. Yesterday, I briefly spoke about John Roy, who was the only African-American Chrysler dealer within a 300-mile radius of Memphis. Notwithstanding his dedication and outstanding performance as a loyal Chrysler dealer, Chrysler decided to terminate his franchise. I am very interested in what criteria were used to determine which dealers are allowed to remain in business and which dealerships must close.

“Another issue that the Subcommittee will explore is whether the use of Section 363 sales in the Chrysler and G.M. cases threatens to undermine Chapter 11. The court in both cases approved the sale of a substantial number of assets by Chrysler and G.M. to newly created entities that were to become the “New” Chrysler and the “New” G.M. Notwithstanding the court’s approval of these sales, some critics have charged that this sale constituted an end-run around the Bankruptcy Code’s plan confirmation process and may have constituted improper sub rosa reorganization plans. I hope that our witnesses can shed some light on this issue.”

Today’s CAL hearing was the second this week to examine the auto industries bankruptcies. Yesterday, the CAL Subcommittee heard testimony from the nation’s “Auto Czar”, Mr. Ron Bloom.

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________________________

Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov