Political heat hits dealership closings

WASHINGTON, June 4 (UPI) -- Taxpayer ownership of U.S. auto companies prompted sharp concerns from Senate committee members over the closing of thousands of auto dealerships.

Chairman of the Senate Committee on Commerce, Science and Transportation John Rockefeller IV said Chrysler's and General Motor's decision to close dealerships while in bankruptcy was "a nationwide tragedy," The Washington Post reported Thursday.

With billions of dollars in government support, taxpayers will own a majority of GM and 8 percent of Chrysler when the companies emerge from their separate bankruptcy cases.

President Barack Obama has said the government will allow professionals to run the companies, but Sen. Mark Warner, D-Va., said elected officials now had "the right and responsibility" to question decisions by automakers.

Chief Executive Officer Frederick "Fritz" Henderson told committee members "we have no choice. We are all being called to sacrifice in order to build a stronger, more viable GM."

John McEleney, chairman of the National Automobile Dealers Association, said, "the open market should have made the decisions," of which dealerships should close.

In a letter to Steven Rattner, head of the government's auto task force, Rep. Darrell Issa, R-Calif., called government pressure to have Chrysler close dealerships a "misuse of the authority of the task force."