Texas Senator drops effort to block Chrysler funding over dealer cuts

Republican Kay Bailey Hutchison, the senior Senator from Texas, has ended her opposition to federal funding for Chrysler because of the way it handled 789 dealer terminations.

Hutchison had proposed an amendment that would have blocked the automaker’s lifeline unless it gave dealers 60 days’ notice of the revocation of their franchise. Chrysler dealers were given just a couple of weeks to unload inventories of parts, tools and unsold vehicles. The amendment would have held up action on a key spending bill Congress wants to pass before the Memorial Day holiday. Hutchison’s amendment also would have applied to General Motors.

The Senator said her decision to drop the amendment came after she and Michigan Senator Debbie Stabenow received assurances from Chrysler President Jim Press that the company plans to do as much as it can to help the dealers get what he called “fair and equitable value for virtually all cars and parts.” Press also said assistance to the dealers would continue after June 9. Chrysler currently has 200 representatives working to move inventory between dealers.

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