In a letter to Senator Chris Dodd and Congressman Barney Frank consumer advocate Ralph Nader called on the Senate and House banking committees to hold “thorough” hearings to protect taxpayers’ investments and to seek answers to several questions about President Barack Obama’s Auto Task Force. Nader wants to know:
– Is the Task Force right in pushing for elimination of as many brands, as it has demanded?
– Is the Task Force asking for too many plants to close?
– Do GM and Chrysler really need to close as many dealerships as announced?
– Is the logic of closing dealers to enable the remaining dealers to charge higher prices; and if so, why is the government facilitating such a move?
– Is it reasonable and fair for GM to impose liability for disposing of unsold cars on dealers with which it severs relations, as Chrysler has apparently done?
– Has the Task Force evaluated the social ripple effects on suppliers, innovation, dealers, newspapers, banks and others that hold company stock and/or are company creditors, and other unique harms that might stem from bankruptcy? (more…)