Dealership terminations by GM and Chrysler will be audited by U.S. Treasury

Article by Christian A., on August 25, 2010

An audit will be made on the dealership terminations by General Motors Co. and Chrysler Group by the inspector general for the U.S. Treasury Department's financial bailout. It is expected that the inspector will be announcing this in the congressional testimony.

The audit will be conducted simultaneously with the dealer-rights negotiations that will start anytime soon, involving the two automakers, dealer groups, key lawmakers and the Obama administration's auto task force. It is likely that a separate audit will be conducted of Treasury's ownership and management of GM since emerging from bankruptcy.

Neil Barofsky, special inspector general for Treasury's $700 billion Troubled Asset Relief Program, was appointed by President Barack Obama and confirmed by the Senate in December 2008.

Barofsky is set to deliver a written testimony before the Senate Banking Committee, stating that the dealer audit will examine the process used by General Motors and Chrysler to identify which automotive dealerships should be maintained or terminated.

The audit came about due to complaints received from many dealers that the process was arbitrary and had led to the closing of profitable stores. In response, GM and Chrysler had said that the terminations were carefully chosen to increase the automakers' prospects for restoring profit after bankruptcy.

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries