Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I ask unanimous consent that Senators Bennett, Bingaman, and Kerry be added as cosponsors of amendment No. 1189. I suggest the…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I ask unanimous consent that Senators Bennett, Bingaman, and Kerry be added as cosponsors of amendment No. 1189.
I suggest the absence of a quorum.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I ask unanimous consent to add Senator Klobuchar as a cosponsor of amendment No. 1189.
I suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I now have 20 cosponsors of amendment No. 1189. I ask unanimous consent to add Senator Klobuchar, Senator Cardin, Senator Ben Nelson, Senator Brownback, Senator Roberts, Senator Grassley, Senator Burr, Senator Johanns, and Senator Schumer as cosponsors of amendment No. 1189.
Mr. President, I add these cosponsors because more and more of our Senators are learning what has happened to these dealerships that have been notified by Chrysler that they have 3 weeks to completely dissolve a business that has been part of a community for 20 years, 30 years, up to 90 years. The oldest car dealership in Texas is 90 years old--a grandfather, father, and now a son running that car dealership. They were noticed 3 weeks from May 14 that dealership will be closed.
Just to give a view of what the dealers received on May 14 and why these 789 who received this notice are so concerned is because the letter they were sent says:
As a result of its recent bankruptcy filing, Chrysler is
unable to repurchase your new vehicle inventory. As a result
of the recent bankruptcy filing, Chrysler is unable to
purchase your Mopar parts inventory. And furthermore, as a
result of the bankruptcy filing, Chrysler is unable to
purchase your essential special tools.
After 90 years of operating a Chrysler dealership, a company is now told they will have no ability after 3 weeks to sell a Chrysler automobile, nor will there be a guarantee for repurchase.
What my amendment does, which now has 20 very bipartisan cosponsors, is to say: Give these dealers 3 more weeks. Give them 3 more weeks to have an orderly transition out of a company. There are estimated to be 40,000 employees of these Chrysler dealerships who received 3 weeks' notice--40,000. We are dealing with so many issues in these auto manufacturer closings, the bankruptcies. We all want the auto manufacturers to stay in business. We do. The Government is making a huge investment in that hope. But the group that is getting nothing right now is the dealers.
The dealers also are the group that has done nothing that caused this problem in the first place. They did not design the cars, they did not manufacture the cars, but they did buy them. There is no cost to the company that manufactures because these dealerships have purchased these cars. They have purchased the parts. They have purchased the special tools to do the repairs. Yet now they are being told they cannot sell, they cannot repair and, oh, by the way: We are not going to guarantee you will have your parts and inventory bought. This is just not right. That is why there are 20 cosponsors to this amendment, and it is growing by the hour.
I submit for the Record a letter that Senator Rockefeller wrote to the chief executive officer, Robert Nardelli, in which he, too, is protesting the egregious timeframe and terms of these franchise terminations which he said ``seem unprecedented to me.''
As you know, most auto dealers have a few months of inventory of new vehicles on their lots, though some may have up to 6-months' worth. This means if the dealers stopped adding cars to their inventories last week when GM and Chrysler announced their decisions, they would still be able to sell cars for 6 months before they run out.
But Chrysler is saying they will not buy back this inventory or even parts and instead has arranged for the remaining dealers to buy the unsold cars from dealers set to lose their franchises. But there is no guarantee of that. Right now it is just a hope.
Senator Rockefeller is concerned, as many of us are, that the dealers are the roadkill in this, and they are also the people who have run successful businesses. They have sold the cars. They have employees. They have investments in the community. In many instances, these are the largest employers in the community. They support the high school football program. They support the community charitable events. We are not only knocking out 40,000 employees, we are not only knocking out the people who have given their faith and loyalty to this brand, but we are knocking out a huge chunk of community activism and volunteer service to the many communities affected by these closings.
I talked with the president of Chrysler this morning, and I believe he sincerely is trying to save the company, and we want him to do that. But it has been half a day, and I have not seen a progress report that we will be able to come back to the floor and say these dealers are going to get some help from Chrysler.
The President says he wants to help. But I think it is time now that we get some sense of what help is. If it is purchasing the inventory, getting the financing for the new and ongoing dealerships that will stay in business, we need to know that. These dealers need to know it so they can plan. My goodness, it is now probably 2 weeks or so, until June 9, and these people are having to plan for the orderly transition of their companies, hopefully not into bankruptcy, but many of them are going into bankruptcy.
I have been told some of these are Chrysler dealers, but they have other dealerships as well. The Chrysler dealership could bring down the ongoing one. I think it is time for the Government that is trying to help the manufacturers to say we need to help the dealers too. We do not need to have a bailout for the dealers, but we do need to give them time to have their orderly transition or give them credit possibilities with the dealerships that are going to stay in business and have them take the inventory. That would be the logical thing to do. But we need a commitment.
The 20 cosponsors of this amendment, when they hear from their dealers and they hear what is happening, want answers and they want answers before this bill leaves the floor. I hope I can give a better result than I have gotten so far today from the White House and from Chrysler that something is coming together. I think everyone has the right goal. We need to work together to achieve that goal.
I yield the floor.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent to add the following cosponsors to amendment No. 1189: Senator Landrieu, Senator Shaheen, Senator Crapo, Senator Risch, Senator Bill Nelson, and Senator Snowe.
Mr. President, I would point out that there are now 26 cosponsors of the amendment that would have tried to give the Chrysler car dealers extra time to get their affairs in order rather than a June 9 deadline. It would just give them 3 more weeks. I am still hoping the White House and the Chrysler company will come forward with something that will give some help to these dealers. I think the Senate is beginning to speak by the number of cosponsorships for this amendment.
I suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent to add Senator Inouye as a cosponsor of amendment No. 1189.
Mr. President, we are still working on language that I very much hope we can get agreement on before the end of the day. I think everyone is working in good faith. That is my hope, and I will remain optimistic that we can have something definitive for the dealers in this country who are facing bankruptcy or dissolution in 2 weeks.
As of now, 28 Senators have signed on to agree that we need to be helpful to them. I think we have a way forward, but we have to get everyone signed off on it. I hope all of the parties will do that, so there can be a definitive announcement, because these dealers need to be able to plan going forward. They need to know what the rules of the game are. I think it is the least we can do for them.
Mr. President, I yield the floor and suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent to add Senators Feingold and Harkin to amendment No. 1189.
That takes us up to 29 cosponsors of this amendment. We are almost up to a third of the Senate saying we need to help these Chrysler dealers. I just hope we can produce something for these dealers by the end of business today that will help them begin to get their affairs in order after the blow they received on May 14.
I yield the floor and suggest the absence of a quorum.
Madam President, I ask unanimous consent to add more cosponsors to amendment No. 1189. They are Senators Collins, Specter, Kohl, Dorgan, Webb, Wicker, and Cornyn.
Madam President, we are up to 35 Members, over one- third of the Senate, who are saying we need to help the Chrysler dealers who got the blow on May 14 saying they had 3 weeks to basically shut down an entire dealership.
I have been talking to so many of my colleagues on the floor since I offered this amendment who have had stories of friends and people they know, people who sometimes own the largest employer in a city or a county, and the hardship these people are facing. They are facing the likelihood--unless we can get some closure--that they are going to lose, perhaps, their dealerships, and many are going into bankruptcy. They all have big real estate investments, we know that. A car dealership has large amounts of real estate. Usually, it is very expensive real estate. They still owe money, and they are in dire straits right now.
What the negotiation is right now is this: I talked to the president of Chrysler this morning at 8:30. I have talked to the people at the White House who are the task force, the people overseeing the Chrysler and General Motors project, and to Senator Stabenow from Michigan, who has been so helpful in trying to put this together and work with me in a bipartisan way because while she has a Chrysler manufacturing plant, she also has dealers in Michigan, as does Senator Levin. So the 35 cosponsors of the amendment are completely bipartisan because we all have these stories, and we know these dealers are not getting a fair chance.
I talked to the President of Chrysler, and he said there would be a letter forthcoming where he would lay out how Chrysler is going to help take the inventory off the books of these dealers that are being shut down--789 across the country. We are talking about 40,000 people working in these dealerships.
We are talking about a lot of lives that are being affected. He said they would put out a letter today--he didn't say close of business, but we agree we both want something out today--that would give these dealers a definitive plan so they would know what they could count on. Not having to worry about inventory was No. 1 on the list. These dealers buy these cars and trucks. They buy them. It is their expense. They buy the parts. They buy the equipment that is unique for the repair of these cars. So they have the risk. Yet they could be stuck with 30 cars or 100 cars. This is sinking them.
I said: I hope you are going to give us something definitive. He said and I believe he is trying to do just that without in any way delaying or disrupting the exit out of bankruptcy, which is in everyone's interest because the taxpayers are paying for the exit out of bankruptcy, and the quicker the better, that is for sure. But these dealers are about to go bankrupt too. We are talking about 40,000 employees of these dealers. I think it is important that we look at them as effective people.
It is now a quarter of six. I just talked again with the president of Chrysler. He says we will have a letter within minutes. Actually, it was 15 minutes ago that I talked with him. He said it would be just a few minutes and they would get something to me.
I am going to tell you right now, Madam President, and I am going to tell all of my colleagues, we are not passing this bill. We are not going to shorten the time. We are not going to have a unanimous consent agreement until I have a letter that will assure these dealers of what they can expect from Chrysler that will, hopefully, give them the clarity they need to be able to say: OK, I don't have to worry about cars and trucks and parts and specialized equipment. I can now worry about making the payments on my real estate. I can worry about my employees
whom we are having to let go and worry about the effect on the community. I can worry about all those things, but the big things that can be handled by Chrysler and the task force will be handled. That is what I am looking for.
I am putting everyone on notice that this bill is not going to have any shortened time period under a UC until I can see that letter. Senator Stabenow stands with me to try to make sure we are doing something that will be adequate.
I will say, Senator Rockefeller, too, is very concerned. He and Senator Byrd sent a letter to the CEO of Chrysler and General Motors to object strongly to the handling, the treatment of the dealers. Senator Rockefeller as the chairman and I as the ranking member of the Commerce Committee are now talking about having a hearing with those CEOs and representatives of the dealership group as soon as we get back. That will be the week after next.
I am waiting, hoping, with all of the good-faith efforts that have been made today by the White House, by the president of Chrysler and his team, and all of the Senators who have signed on as cosponsors of this amendment.
I ask unanimous consent that Senator Lincoln be added as a cosponsor of this amendment.
Madam President, I think the Senator from Arkansas, who is working very hard on trying to get an amendment into this bill as well. She is in the Chamber. I appreciate her also coming in and saying: We are a bipartisan team, and we want results for these dealers who have been so badly treated up to this point. I am hoping that will change in the next few minutes and we will see a light at the end of the tunnel for these dealers.
Madam President, I yield the floor and suggest the absence of a quorum.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I state for the record that the Commerce Committee hearing on the auto dealerships has been set for June 2 at 2:30 p.m. This is a very important hearing where we are going to have representation from the automobile manufacturers, as well as the automobile dealers. I hope that will shed some light on what we can do to help these dealers.
Madam President, I yield the floor and suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, the Senator from Michigan, Ms. Stabenow, and I have been working all day with the Chrysler president and his team and with the White House and their team and the task force and their team to try to give the assurances to the 789 dealers who are going to be put out of business across our country by Chrysler--with the 3-week notification--that they will be able to recoup the cost of the inventory that has been left on their property and in their dealerships.
I said I was going to hold up any shortening of time period for this bill to be considered until I got a letter of assurance. The original amendment, for which we have 37 cosponsors, was to extend the time by 3 weeks to allow the dealers to be able to sell more inventory, have a more orderly transition.
In fact, what we have done, in consultation with the dealers, I think is going to be much better. It is not everything they had hoped for, but if there is good faith in this effort, it is going to be good for the dealers. But it will take good faith.
Here is the letter the president of Chrysler, James Press, has sent to me. And Senator Stabenow as well has been one of the people who has been talking about this and negotiating.
The letter says:
Dear Senator Hutchison:
I assure you that our process for redistributing the
product from OldCo dealers--
Who are the old company dealers who are going to be put out of business--
to NewCo dealers--
Who are the dealers who will survive--
is designed to assure that products flow quickly and
efficiently from every OldCo dealer. As part of this process,
we will ensure that the OldCo dealers receive a fair and
equitable value for virtually all of their outstanding
vehicle and parts inventory. We have more than 200
representatives in the field that are working to ensure that
we make good on this commitment as quickly as is practical.
We have a very robust system in place to manage the sales to
NewCo dealers as well as the inspection and shipment to the
new dealer.
Thanks to your input today we have added a new set of
assurances and information for the OldCo dealers, with the
intention of removing some of the uncertainty that naturally
surrounds this process. Each OldCo dealer will receive a
daily report which specifically outlines each unit of
inventory and its place in the transition process.
We share the objective of selling these vehicles as quickly
as possible to protect residual values. We are committed to
sell every unit possible by June 9, prior to resumption of
production [of the company].
Thank you for your time and interest today. Our goal is to
ensure that every dealer realizes a soft landing and is able
to transition smoothly.
Senator Stabenow and I called Mr. Press for a clarification of some of the parts of this letter. The biggest concern, of course, that the dealers have is getting the inventory they have paid for off their books. That is their biggest concern.
We were assured that the 200 representatives who are going out to help this orderly and quick transition will make every effort to expedite the transition to the surviving dealerships as quickly as possible. This will include specialized tools, as well as parts, inventory, and outstanding vehicles.
I said: What happens after June 9? Because the June 9 deadline is good when you are trying to expedite, but then you are not saying that you will not keep helping after June 9. They said: Absolutely not. Mr. Press said they will certainly continue to help until every part of this transition of this inventory is disposed of. And the help will be there after June 9. That was the assurance that was given.
The major thing that has happened that has been helpful is that GMAC has received--as we all know because it is public--in the range of $7.5 billion for financing, which will be available to the new surviving dealerships--Chrysler, and I am sure General Motors as well--and so the new dealers will have the ability to finance the taking of the inventory off of the dealers who are going to be put out of business.
So that is probably one of the most important components here because there had to be a lending source for the new dealers to absorb the new inventory.
I think the biggest concern left for the dealers is the floor plan loans they have for the inventory that is there and how that would change after June 9. I asked that question. And basically the answer is: We are going to try to do everything possible to get these transitions out before June 9 so you will not have, hopefully, the problem of loans being modified.
So that is the essence of the conversation and questions I asked for clarification. I ended by saying that I think we are much further ahead now than we were when the letter arrived on May 14 to the dealers saying: We are not going to buy inventory, we are not going to buy parts, and we are not going to buy the specialized tools, and you have 3 weeks to deal with this. We have come a long way from there.
I said to Mr. Press, and to his team, that I did appreciate this effort and the better clarification, but we will know in 2 weeks if the good faith that is represented in this letter is, in fact, implemented. And they agreed with that.
I think we have made a step in the right direction--when my dealers call and say: Under the circumstances, it is not what we had wanted, but we have been treated as fairly as possible and have certainly gotten the relief from the burden of inventory so we can deal with the employees who will not be with us anymore, and the land and the real estate and the other costs of closing an ongoing business.
So I will say to my colleague from Michigan, I do not think any of this would have happened without her stepping in. And hands-on efforts were made to bring the White House in, Chrysler in, my staff, her staff. So it was certainly a team effort.
I want to thank the 37 cosponsors of my amendment because I think that was a clear indication that over one-third of this Senate was not going to let this go the way it had been left at the time. So if there is good will in this whole effort for the next 2 weeks, then I am optimistic it will have a good result.
Mr. President, I ask unanimous consent that the letter written to me by James Press today be printed in the Record.
I yield for Senator Stabenow.
Mr. President, I wish to thank again the Senator from Michigan. It was certainly a difficult position for her to, of course, have the manufacturers--GM and Chrysler--but also to have the dealers that are all over Michigan. I think the tireless efforts we had all day today will hopefully end in the next 2 weeks with the implementation of as fair as possible dealings with the dealers that we could possibly have.
Mr. President, I wish to add Senator Thune as a cosponsor of amendment No. 1189.
Mr. President, I appreciate my colleague, and I so appreciate the 39 cosponsors of this amendment who stepped up to the plate and said this has to be fixed. In the end, that made a big difference. I wish to thank my colleagues who have been very bipartisan.
Mr. President, I yield the floor and suggest the absence of a quorum.