By Kay Bailey Hutchison - Guest Commentary
On May 13 Russell Aubrey Whatley received a letter that would change his life.In the perfunctory letter
Chrysler informed Whatley that he would have less than a month to close down the dealership his family has profitably operated for three generations.
His business has contributed to the livelihood of Mineral Wells Texas through commerce and community involvement for the last 90 years.
The Russell Whatley Motor Company one of the oldest car dealerships in Texas was not the only business to find itself dragged into the worsening predicament of the U.S. auto industry most recently punctuated by the bankruptcies of Chrysler and General Motors.
Across Texas 50 Chrysler dealers have been slated for closure. Nationwide 789 dealers are being forced to close their doors.
They did not make the business decisions that have placed the domestic auto industry in this position.
In fact when ailing Chrysler in February urged its dealers to purchase additional inventory in a final futile attempt to stave off bankruptcy most of the dealers complied.
And many of those who were subsequently terminated were flush with inventory Chrysler executives pushed them to buy potentially burdening them with significant losses.
Upon learning of Whatley and other Texas dealers plight I was shocked that Chrysler could dismiss these loyal dealers with whom the company had partnered for so many years.
It seemed they had little concern for the well-being of the employees customers and communities they serve.
I disagree that these profitable dealers should close at all. On May 21 I introduced an amendment to deny Chrysler additional federal funding. Chrysler has been receiving federal funding to help maintain solvency unless it gave dealers slated for closing adequate time to do so.
In a matter of hours my colleagues signed on to the legislation until we had 39 Senators from both sides of the aisle calling for equitable treatment of the terminated dealers.
Our calls were heeded when the Chrysler chief executive Jim Press personally assured me that Chrysler was taking steps to help automotive dealers across the country.
This was a welcome development. As Senior Republican on the Senate Commerce Committee I worked with Chairman
Jay Rockefeller to verify that Chrysler would provide each impacted dealer ready access to necessary resources to close down its operations.
On June 3 we held a committee hearing in which Press and General Motors chief executive Fritz Henderson testified alongside the very dealers they were dismissing including Whatley.
Whatley made it clear in his testimony that Chryslers decision to discontinue its relationship with him was not just the failure of a business venture.
For him and his family it was the end of three generations of personal investment and enterprising spirit.
My grandfather opened this dealership in 1919 and it kept open during the Depression World War II and countless economic setbacks" Whatley said.
In the 90 years that we have been in Mineral Wells 36 other new car dealerships have come and gone in our town. We have stayed open because we are committed to customer service. To be arbitrarily closed with no compensation is wasteful and devastating."
During the hearing I probed Chryslers actions on two critical points.
First would Chrysler repurchase or help redistribute the cars left on closed dealers lots and remaining parts inventory?
And second would closed dealers receive first consideration for buying into a new dealership if Chrysler reentered their markets? Press pledged at the hearing that dealers could count on Chryslers help as they closed.
There are right ways to do things and there are wrong ways. In October General Motors will close 1300 of its dealers. I hope that the challenges we have faced with Chrysler will guide the actions of General Motors executives as well.
*This article is from www.MySanAntonio.com
His business has contributed to the livelihood of Mineral Wells Texas through commerce and community involvement for the last 90 years.
The Russell Whatley Motor Company one of the oldest car dealerships in Texas was not the only business to find itself dragged into the worsening predicament of the U.S. auto industry most recently punctuated by the bankruptcies of Chrysler and General Motors.
Across Texas 50 Chrysler dealers have been slated for closure. Nationwide 789 dealers are being forced to close their doors.
They did not make the business decisions that have placed the domestic auto industry in this position.
In fact when ailing Chrysler in February urged its dealers to purchase additional inventory in a final futile attempt to stave off bankruptcy most of the dealers complied.
And many of those who were subsequently terminated were flush with inventory Chrysler executives pushed them to buy potentially burdening them with significant losses.
Upon learning of Whatley and other Texas dealers plight I was shocked that Chrysler could dismiss these loyal dealers with whom the company had partnered for so many years.
It seemed they had little concern for the well-being of the employees customers and communities they serve.
I disagree that these profitable dealers should close at all. On May 21 I introduced an amendment to deny Chrysler additional federal funding. Chrysler has been receiving federal funding to help maintain solvency unless it gave dealers slated for closing adequate time to do so.
In a matter of hours my colleagues signed on to the legislation until we had 39 Senators from both sides of the aisle calling for equitable treatment of the terminated dealers.
Our calls were heeded when the Chrysler chief executive Jim Press personally assured me that Chrysler was taking steps to help automotive dealers across the country.
This was a welcome development. As Senior Republican on the Senate Commerce Committee I worked with Chairman Jay Rockefeller to verify that Chrysler would provide each impacted dealer ready access to necessary resources to close down its operations.
On June 3 we held a committee hearing in which Press and General Motors chief executive Fritz Henderson testified alongside the very dealers they were dismissing including Whatley.
Whatley made it clear in his testimony that Chryslers decision to discontinue its relationship with him was not just the failure of a business venture.
For him and his family it was the end of three generations of personal investment and enterprising spirit.
My grandfather opened this dealership in 1919 and it kept open during the Depression World War II and countless economic setbacks" Whatley said.
In the 90 years that we have been in Mineral Wells 36 other new car dealerships have come and gone in our town. We have stayed open because we are committed to customer service. To be arbitrarily closed with no compensation is wasteful and devastating."
During the hearing I probed Chryslers actions on two critical points.
First would Chrysler repurchase or help redistribute the cars left on closed dealers lots and remaining parts inventory?
And second would closed dealers receive first consideration for buying into a new dealership if Chrysler reentered their markets? Press pledged at the hearing that dealers could count on Chryslers help as they closed.
There are right ways to do things and there are wrong ways. In October General Motors will close 1300 of its dealers. I hope that the challenges we have faced with Chrysler will guide the actions of General Motors executives as well.
*This article is from www.MySanAntonio.com
