May 22, 2009
Rahall Submits Testimony in Support of WV Auto and Truck Dealers
Special to Huntingtonnews.net
Washington, DC (HNN) -– U.S. Rep. Nick J. Rahall, D-WV, on Thursday, May 21, 2009 submitted testimony to the House Committee on the Judiciary hearing on the ramifications of auto industry bankruptcies to express his grave reservations with recent announcements by Chrysler and General Motors to cut nearly 1,800 dealerships nationwide. Thursday's action follows Rahall’s letter last week to President Obama’s Auto Task Force urging reconsideration of their current strategies to avoid the substantial negative impact on West Virginia’s economy and the Nation as a whole.
“Automotive dealerships are an important economic engine. Removing them will cause significant losses to West Virginians – losses we can’t well afford,” said Rahall. “Dealers generate more than 90 percent of manufacturer revenue. A rapid reduction of dealerships undercuts that revenue and does nothing to address concerns about production or stimulate innovation.”
Under the current plan put forth by the Auto Task Force, West Virginia could lose at least 20 General Motors and 22 Chrysler dealerships. That action would reduce the number of dealerships in this rural state to a little over 125 store fronts. It could also add at least 1,000 workers to the unemployment role. Considering every automotive job approximately equals five support positions, the effect on employment opportunities would be devastating.
“In West Virginia, dealerships are part of the economic solution, not part of the problem. Franchised dealers account for vast numbers in sales, sales taxes, and titling fees for the highway fund,” said Rahall.
“In these challenging economic times, closing businesses and eliminating jobs is not the answer. Our families and communities will take the hit and pay the price for the missteps and mistakes of others,” stated Rahall.
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Rahall Submits Testimony in Support of WV Auto and Truck Dealers
Special to Huntingtonnews.net
Washington, DC (HNN) -– U.S. Rep. Nick J. Rahall, D-WV, on Thursday, May 21, 2009 submitted testimony to the House Committee on the Judiciary hearing on the ramifications of auto industry bankruptcies to express his grave reservations with recent announcements by Chrysler and General Motors to cut nearly 1,800 dealerships nationwide. Thursday's action follows Rahall’s letter last week to President Obama’s Auto Task Force urging reconsideration of their current strategies to avoid the substantial negative impact on West Virginia’s economy and the Nation as a whole.
“Automotive dealerships are an important economic engine. Removing them will cause significant losses to West Virginians – losses we can’t well afford,” said Rahall. “Dealers generate more than 90 percent of manufacturer revenue. A rapid reduction of dealerships undercuts that revenue and does nothing to address concerns about production or stimulate innovation.”
Under the current plan put forth by the Auto Task Force, West Virginia could lose at least 20 General Motors and 22 Chrysler dealerships. That action would reduce the number of dealerships in this rural state to a little over 125 store fronts. It could also add at least 1,000 workers to the unemployment role. Considering every automotive job approximately equals five support positions, the effect on employment opportunities would be devastating.
“In West Virginia, dealerships are part of the economic solution, not part of the problem. Franchised dealers account for vast numbers in sales, sales taxes, and titling fees for the highway fund,” said Rahall.
“In these challenging economic times, closing businesses and eliminating jobs is not the answer. Our families and communities will take the hit and pay the price for the missteps and mistakes of others,” stated Rahall.
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