Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Aligning with ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 22, 2013 02:00 AM

2 congressmen ask Treasury for details on auto dealership closures

Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By Vince Bond Jr., Crain News Service

    WASHINGTON (May 22, 2013) — Two congressmen — one a former Ohio auto dealer and the other a Pennsylvania new- and used-car dealer — have asked the U.S. Treasury Department to release materials detailing how General Motors Co. and Chrysler Group L.L.C. dealerships were selected for closure during the 2008-09 restructuring of the auto industry.

    Rep. Jim Renacci, R-Ohio, who owned a now-shuttered Chevrolet store in Wadsworth, Ohio, and Mike Kelly, R-Pa., owner of Cadillac-Chevrolet, Hyundai and Kia stores in Pennsylvania, sent a letter to Treasury Secretary Jack Lew highlighting their concerns about the fairness of the selection process.

    The request for information follows revelations that the Internal Revenue Service has targeted conservative groups for tax-exempt status scrutiny.

    Mr. Renacci bought his Chevrolet dealership in 2007 when he was mayor of Wadsworth. The store closed in 2010 after he lost an arbitration battle with GM.

    "I always wondered what the true process was because it was not a lot of information given to any of us who were told we were not going to be a part of the General Motors family going forward," said Mr. Renacci, who wouldn't rule out a return to the car business one day.

    "…When you see issues like what happened with the IRS, you really get concerned of how hardworking American taxpayers are being treated—whether they're car dealers or just regular people trying to form Tea Party groups."

    Mr. Kelly's Cadillac dealership was slated to close, but ended up receiving a reinstatement letter from GM.

    Messrs. Renacci and Kelly want the Treasury to provide all emails, phone records, notes, memoranda, reports and other communications related to the decisions about dealership closures.

    They also want the names of the officials who made those decisions and "any data considered by the agency in making these decisions, including meetings with outside groups."

    Both congressmen wrote that the IRS incident "raises serious questions about past decisions made by the department regarding auto dealership closures that occurred in 2008 and 2009."

    In the letter, the congressmen wrote they have an obligation to the American people "to ensure that political profiling has not been a systemic issue within this administration."

    In the May 16 letter, Messrs. Kelly and Renacci point out that a Treasury Special Inspector General report indicated that selection criteria used by GM and Chrysler to spare or close dealerships weren't followed consistently.

    They cited a portion of the so-called SIGTARP report stating there was little or no documentation of the decision to close dealerships with similar profiles. This made it "impossible in many cases for SIGTARP to determine the causes of deviations from the supposedly objective criteria," the letter states.

    "In light of SIGTARP's findings that objective criteria were not consistently followed," the letter states, "along with the IRS's recent admission regarding political profiling, we deem it necessary for the Treasury Department to ensure that political profiling was not an aspect of the methodology used for determining dealership closures."

    This report appeared in Automotive News, a Detroit-based sister publication of Tire Business.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Michelin worker dies at Nova Scotia tire plant
    2
    Judge slashes damages in Toyo-Atturo 'trade-dress' lawsuit
    3
    Yokohama to raise U.S. prices on car, truck tires
    4
    Sun Auto Tire adds first locations in Oregon
    5
    OSHA levies 'serious' violations against Conti after worker injuries
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Aligning with ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION