As expected, politicians continue to play politics with government-owned General Motors Co. and Chrysler Group LLC.
The latest to jump at the opportunity is Rep. Steny Hoyer, D-Md., who as the Democratic majority leader is the House of Representative's second-most powerful person behind Speaker Nancy Pelosi. The congressman is taking up the cause of dealers who lost out in the bankruptcies and plans to meet with the dealers on Wednesday to hear their grievances.
The Wall Street Journal notes that members of Congress usually avoid business disputes. However, GM and Chrysler offer a unique circumstance not only because the government oversaw their bankruptcies, but because so many small businesses were harmed by the bankruptcies when they lost their franchises to sell GM or Chrysler cars. And while this may offer little concern to the White House or even the Senate, for the House of Representatives it hits closer to home because car dealers are often important political donors. In fact, concern over dealer terminations cuts on both sides of the aisle.
In fact, the latest move by Rep. Hoyer is not the first by members of Congress. When the two first filed for bankruptcy, media and pundits alike fretted over the possibility that politicians would attempt to exert political influences over the two troubled companies rather than do what's best for their restructuring. For example, in July, a House committee dug into auto restructurings. A House committee approved a Republican resolution requesting the White House turn over all relevant information about its role in the restructuring of GM, Chrysler and Delphi Corp. As is currently the case, some of the concerns had to do with dealer closings. - Matthew Wurtzel
For a complete timeline of GM's bankruptcy, see Dealwatch
Also see from The Deal magazine:
Lehman, Chrysler, GM: The fallout
GM in bankruptcy
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