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Automakers defend dealership closings

House panel hears testimony

WASHINGTON — Under withering criticism in Congress, General Motors and Chrysler executives called the closings of hundreds of dealerships painful steps needed to rightsize the auto giants. Down-on-their luck dealers said the moves would needlessly devastate their local economies and livelihoods.

"Many dealers and the communities they serve frankly feel blind-sided," said Rep. Greg Walden, R-Ore.

GM CEO Fritz Henderson told a House panel the dealer cuts were "quite painful" but necessary to save over 200,000 jobs at remaining dealers.

Chrysler Deputy CEO Jim Press said the cuts were part of the shared sacrifices by the United Auto Workers union, bondholders and others needed to avoid liquidation.

But the committee heard from shutout dealers such as Frank Blankenbecker III of Waxahachie, Texas, whose voice cracked as he recalled the hard work of his father, a World War II veteran, to build their family business.

"I am glad that he is not alive to witness this travesty. To have risked his life for a country that would do what they are doing would destroy him," he said.

The committee released a GM document that, for the first time, provided a state-by-state list of 1,323 dealerships the automaker plans to wind down. Pennsylvania had the most with 90, followed by Ohio with 79, Illinois with 66 and California with 65. Alaska was the only state spared.

GM has declined to release the name of individual dealerships.

Among Chrysler, Dodge and Jeep dealerships, Pennsylvania has lost 53, followed by Texas with 50 and Ohio with 47.

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