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:

Comments

Recommended

Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 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