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Kingsport urged to rally behind Chrysler dealers
KINGSPORT — Alley’s Chrysler Dodge and Don Hill Jeep have banded together with hundreds of Chrysler dealerships across the country and hired a law firm to fight Chrysler’s plan to shutter certain dealerships in the next few weeks. In the meantime, the Kingsport Area Chamber of Commerce is urging local residents to contact Capitol Hill in support of the two Kingsport dealerships targeted to lose their Chrysler franchises. “Members of Congress need to hear from you immediately regarding the unfairness of the Chrysler reduction plan and the hardship it is causing dealerships, their employees and the community,” reads a chamber e-mail sent out to the community. “Please take a few moments to call or write to urge your representatives and senators to contact the president.” Alley’s Chrysler Dodge and Don Hill Jeep in Kingsport are among the 789 dealerships nationwide that will lose their franchises as part of Chrysler’s restructuring plan. In documents filed in bankruptcy court in New York, the automaker said it wants to shed the dealerships by June 9. Kingsport Chamber CEO Miles Burdine said the plan will damage communities by reducing consumer choice for vehicles and by eliminating potential sales tax revenues for the city from the sale of vehicles. “Plus,” Burdine said, “both of these dealerships have been very supportive of the community, very helpful to many nonprofits. We don’t like what we’re seeing, and we would definitely advocate for having these dealerships remain open.” In its e-mail, the chamber states the Chrysler plan would “recklessly terminate long-standing businesses — often in the family for generations — in less than a month without buying back vehicle inventory or parts.” The plan also provides “no right to appeal this decision; and no analysis of the impact on communities where dealerships will be forced to close,” according to the chamber e-mail. “Members of Congress should urge the president to revisit the Chrysler plan, provide more transparency, and design a softer landing for dealers, employees and affected communities,” the chamber e-mail states. At Alley’s Chrysler Dodge Jaguar Saab, Doug Alley said the rejected dealers nationwide have hired a law firm, Squire Sanders & Dempsey, to fight Chrysler’s plan in bankruptcy court. The Cincinnati-based law firm has filed a motion asking the court to reject the plan. In case that motion fails, the law firm has filed 62 pages of motions, arguing why Chrysler shouldn’t be allowed to do what it plans to do. Rick Hill with Don Hill Jeep could not be contacted on Friday. But Alley said the Hill dealership is participating in the lawsuit along with Alley’s Chrysler Dodge. “I think it’s a reasonably good shot,” he said of the lawsuit. “It’s one of the premier bankruptcy law firms in the country.” He said he’s hoping local residents will also help in the effort by contacting their congressmen on the issue. And the dealerships, themselves, are contacting Congress. “What we’re asking the Congress to do — don’t let them do this to us,” Alley said. U.S. Sen. Kay Bailey Hutchison, a Republican from Texas, recently introduced an amendment that would give dealerships slated for closing on June 9 an extra 60 days to shut down operations and sell remaining inventory. The amendment also states that no funds should be distributed from the U.S. Treasury to an auto manufacturer that has notified a dealership that it will be terminated without providing at least 60 days for that dealership to wind down its operations and sell its inventory. “Sixty days are all we’re asking for. Frankly, I wish we could go much further, because I fundamentally disagree with the decision to arbitrarily and unnecessarily close down these auto dealers,” said Hutchison. The amendment has been endorsed by the National Automobile Dealers Association. “I think there’s a considerable amount of political pressure coming to bear on the situation,” Alley said. While lawmakers wrestle with the issue, Chrysler has told dealerships it will help in trying to place inventory with other dealerships not on the list for closure. Still, Alley said he’s trying to sell as many cars and trucks as he can. “It is in our interest to sell as many of these Chryslers and Dodges as we can as fast as we can sell them. So we’re making deals like never before,” Alley said. No matter what happens, Alley said his dealership will not close. He said the business still has its franchises for Jaguar and Saab. “And we have 60 years of experience in the car business. We know how to sell used cars, and we have a customer base of about 12,000 people, and we feel pretty sure that most of those customers would still like to come to us for their service,” Alley said. Alley’s Saab franchise is another question mark in the big picture. Saab is part of General Motors, which is also expected to declare bankruptcy. But GM has said it is searching for a buyer for the Saab nameplate, and Alley said the automaker is optimistic it can “make a deal to keep Saab in the United States market.” Asked if Auto Max, Alley’s used car business on Stone Drive, might be consolidated with Alley’s new car center down the road, Alley said it’s too early to know. “It depends on how it all shakes out. We may have to resize it a little bit,” he said. “The most important thing to us — we’re not going out of business. The deals — this is a window of opportunity to buy Chrysler and Dodge and Jeep products from the Hills at a price that’s not likely to be repeated maybe ever again.” To contact your senators and representatives on the issue visit www.senate.gov and www.house.gov or call the Capitol switchboard at (202) 224-3121. 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