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House OKs car dealer compromise plan

WASHINGTON — The House approved a compromise plan to give General Motors and Chrysler dealers an appeals process to keep their showrooms open.

A $1.1 trillion spending bill approved Thursday includes provisions to give 789 Chrysler dealers closed in June and more than 1,350 GM dealers expected to be shut down next year an opportunity to challenge the automakers' decisions.

GM and Chrysler have attempted to shed dealerships as part of their government-led bankruptcies. But the moves have riled up members of Congress, who have received numerous complaints from dealers being shut down.

General Motors and Chrysler said last week they would reconsider decisions to close the dealers as part of a compromise plan including face-to-face reviews with dealerships and binding arbitration for dealers who challenge the decisions.

But dealers and key lawmakers pushed back, saying the GM and Chrysler approaches wouldn't do enough. The compromise developed by Hoyer and Dick Durbin of Illinois, the Senate majority whip, requires the arbitration panels to consider a number of circumstances, giving some car dealerships a better chance of surviving.

The arbiter would weigh issues such as the economic interests of the terminated dealer, the company and the public, the dealer's profitability during the past four years and conditions that could have led to a poor sales performance, including natural disasters and a poor local economy.

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