Dealer takes fight to D.C.
Local business owner pushing for auto bailoutBy RAYMOND L. SMITH -and LARRY RINGLER Tribune Chronicle
WASHINGTON, D.C. - Local Chrysler Dealer Chuck Eddy is one of five members of National Association of Auto Dealers who are scheduled to meet with President George W. Bush in an effort to convince him to support a $25 billion bailout of the U.S. auto industry.
Eddy, who co-owns a Austintown-based Chrysler dealership, has been in Washington since Sunday talking to members of the U.S. Senate and House of Representatives, attempting to drum up support for the bridge loan being asked for the auto industry.
Working with auto dealers Hayden Elder of Texas and Jim Arrigo of West Palm Beach, Fla., Eddy has spoken to about a half dozen lawmakers, including senators John McCain, Mel Martinez and Chuck Hagel.
"We've spoken to a variety of political leaders, including Ohio senators George Voinovich, R-Ohio, and Sherrod Brown, D-Ohio, both of whom are supporting the effort to assist the nation's Big Three automakers," he said. "We are talking to anyone who would listen.
"Our message will be how the failure of passing the bridge loan will affect the 140,000 employees of auto dealers across the country," Eddy said. "There are 3,300 employees that work at Chrysler dealerships. We have 56 employees at our dealership."
Eddy argues that if anything happens to Chrysler's ability to manufacture, ship, supply parts and incentivise autos, it will affect more than his company, it also will affect all of the companies that do business with him.
"It will affect everything from local media organizations to janitorial services," he said.
The campaign to educate the lawmakers is having some success.
"It is amazing how many did not understand the ripple effect of what would happen if the car makers were forced to go into bankruptcy," Eddy said.
Ohio is the the second-largest automotive production state and has the fifth-highest number of auto dealerships.
Democrats in the House of Representatives and the U.S. Senate have been pushing for administration to support a bailout that would be similar to what is being done for the nation's financial sector. Under both plan, the U.S. would use part of the $700 billion passed to help struggling banks and home owners.
U.S.'s three major automakers each have said they need quick action. They do not believe they can wait until the start of the administration of President-elect Barack Obama and a Democratically controlled House and Senate.
GM contends it could potentially run short of cash before the end of the year.
In spite of the pleas by automakers and others, Bush and most Republican leaders have said they are against of a bailout of the auto industry. Critics of the bailout plan say the industry has not done the major work needed to improve their operations and stop the loss of millions of dollars of day.
The three major U.S. companies employ 239,000 employees, have more than 775,000 retires and more than two million people covered by their health insurance programs.
Tuesday's hearings were in front of the Senate Banking, Housing and Urban Affairs Committee is to include testimony from the chiefs of GM, Ford, Chrysler and the UAW. More hearings will be today.
Meanwhile, Warren Chevrolet dealer Diane Sauer said GM is trying to rally grassroots support with a Web site which allows visitors to send an automated letter to their local lawmakers explaining why the auto industry is vital.
The site also explains other support efforts, including giving car buyers a tax deduction on the sales tax they pay for a vehicle, reinstating the tax deduction for interest on a car loan or perhaps a tax credit for buying a new vehicle this year.
''I think those things very much would push people into buying,'' Sauer said. ''It might not be enough to bail out the domestic industry, but it would bring people into the showroom.''
The incentives would be applied to all automakers, but GM says it's especially hard-pressed to find cash to keep operating. The company on Monday told dealers it would delay for two weeks sending them incentive payments scheduled for Nov. 28 and Dec. 4. Dealers will get the payments Dec. 11 and Dec. 18, GM said.
Trade publication Automotive News estimated that delay would give the company about $302.4 million to pay its bills.
Sauer, who employs 63 at her downtown Warren dealership, said the delay ''certainly will hurt every dealers' cash flow. For dealers in trouble, it'll be a significant challenge. There's a lot of dollars a stake.
''It further defines the gravity of the situation,'' she said.
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johnsmith
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11-19-08 11:02 AM
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It is an easy fix...fire all the CEO`s make them give back all the millions they took. Bring back all the jobs they sent to Mexico and China, put Americans back to work making good money so they can afford to buy new cars.
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Billdog
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11-19-08 10:06 AM
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Chuck Eddy sells news cars also.
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zipcityboy
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11-19-08 8:44 AM
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Having used car dealer make a pitch of this enormous importance is not such a good idea. The hundreds of thousands of working families who stand to lose good-paying jobs are the ones who should flood D.C. and demand the government work for We, the People who are facing economic terrorism.
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anniemae
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11-19-08 8:19 AM
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tell chuck eddy to go talk to the UAW & rick wagoner & see what they'll give up. Their wallets are so fat, they could give a sh--. The retired salary folks are losing their "EMPLOYEE PAID" medical Jan 1. How do they feel? No negotiations there....just taken away. Hadn't better touch their pensions, or the lawyers will get rich..quick!
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