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Save the Auto Dealers!

Two bills introduced in Congress this week are apparently meant to save automobile dealers from hardship in the auto industry.

H.R. 2743 and H.R. 2750 both say they would “restore the economic rights” of automobile dealers.

What’s an “economic right”? Unclear.

But here’s the key line from H.R. 2743 (and there’s similar language in H.R. 2750):

. . . an automobile manufacturer covered under this Act shall restore the franchise agreement between that automobile dealer and Chrysler LLC or General Motors Corp. that was in effect prior to the commencement of their respective bankruptcy cases and take assignment of such agreements.

That would drive a truck – an American-made truck – through the bankruptcy process that is supposed to get the auto manufacturers back on their feet again. Restoring contracts that made the auto industry unsustainable will prevent the auto industry from becoming sustainable. But, hey, if you call it “economic rights” – everyone should have their economic rights, right?

Auto dealers should have our sympathy – just like everyone who’s getting the driveshaft in the auto manufacturer bankruptcies. But I’m not sure about these so-called “economic rights.”

Here are the current votes on H.R. 2743 and H.R. 2750. Click to vote, comment, learn more, or edit the wiki articles about the bills.

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