Some Auto Dealers Feel Let Down by Their Senators
Dealer reaction to the collapse of the automotive bridge-loan legislation that would have seen a $14 billion rescue package going to General Motors Corp. and Chrysler LLC, ranges from frustration to pragmatism to admiration for Sen. Bob Corker (R-TN). Republican senators' hard stance on a rescue bill has frustrated dealers, whose support generally trends toward the GOP. According to the website opensecrets.org,
January 1, 2009
Dealer reaction to the collapse of the automotive bridge-loan legislation that would have seen a $14 billion rescue package going to General Motors Corp. and Chrysler LLC, ranges from frustration to pragmatism to admiration for Sen. Bob Corker (R-TN).
Republican senators' hard stance on a rescue bill has frustrated dealers, whose support generally trends toward the GOP. According to the website opensecrets.org, car dealers have donated $50.3 million to Republicans since 1990, and only $15.8 million to Democrats.
Annette Sykora, chairman of the National Automobile Dealers Assn., admits the process has been difficult for the trade group's constituency. Another dealer executive tells Ward's in an email that he'll have to change his political party now, a sentiment many dealers likely are feeling today.
One Alabama dealer, unhappy with the vote's outcome, attributes Sen. Richard Shelby's (R-AL) refusal to support the bailout legislation to overwhelming polls in the state against helping the auto makers. “He's attracted to the media attention,” says the dealer.
Carl Galeana, owner of dealerships in Michigan, South Carolina and Florida, says he is “really disappointed from a retail standpoint with the Senate's decision.” Galeana also expresses frustration with Sen. Lindsey Graham's (R-SC) stance against the legislation, saying, “It's obvious they (Senate Republicans) were going after the union.”
Sen. Mitch McConnell (R-KY) also voted against the bridge-loan legislation after reportedly indicating to dealers privately he would not oppose it.
“There's no doubt we were disappointed,” says Jack Kain, owner of Jack Kain Ford in Versailles, KY, and a former chairman NADA. “However, we (U.S. auto makers) really will not be competitive until the union comes to the table. We need a level playing field to compete.”
Kain believes Corker's plan made sense, praising his and McConnell's efforts in trying to produce a bill that would help the domestic auto makers become more competitive.
Buck Baumann, president and owner, Baumann Auto Group, which consists of four GM and three Chrysler dealerships in northwest Ohio, also liked Corker's plan, saying he has the “right attitude about it. He's trying to get GM into a competitive position, and that's what it's about.”
Baumann expects the auto makers will get the money from the Troubled Asset Relief Program but does not believe the loan will help in the long term.