Issa Questions Transparency in Chrysler Dealings

June 3, 2009

Calls on Administration to Disclose Role of Task-Force

WASHINGTON. D.C. – House Committee on Oversight and Government Reform Ranking Member Darrell Issa (R-CA) today sent letters to Chrysler Chairman and CEO Bob Nardelli and Counselor to the Secretary of the Treasury Steven Rattner expressing concern about “the lack of transparency surrounding the decision to reduce the number of existing Chrysler dealerships by 25 percent that was reportedly made under pressure from the Presidential Task Force on the Auto Industry.”

“Intervening in the bankruptcy process by exerting pressure on Chrysler to shed 789 dealership agreements is a misuse of the authority of the Task Force, giving credence to growing concerns the Task Force is not working to facilitate the restructuring of Chrysler but rather to nationalize the company by making decisions affecting the company’s day-to-day business,” Issa wrote.   “The implementation of the plan to close 789 dealerships has been haphazard and has generated confusion among those affected.  By refusing to explain the decision to close dealerships and refusing to reveal the formula used to identify non-viable dealerships, you and the Task Force have left dealers wondering how and why they were selected to have their assets liquidated.”

The full text of the letter to Mr. Nardelli is available here.

The full text of the letter to Mr. Rattner is available here.

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