Kosmas fights to save Central Florida jobs by holding GM and Chrysler to contracts with local dealerships

WASHINGTON, D.C. -- Congresswoman Suzanne Kosmas, D-New Smyrna Beach, took action today to protect jobs and stop forced closings of Central Florida automobile dealerships by signing on as an original co-sponsor of the bipartisan Automobile Dealer Economic Rights Restoration Act (H.R.2743).

The legislation will restore the economic rights of automobile dealers in order to protect jobs, workers, and small business owners. "Arbitrary closings are contrary to the entrepreneurial spirits of dealerships, small and large, who employee over 150,000 workers nationwide," said Kosmas, the first-term Democrat of the 24th district.

"Efforts to revitalize the auto industry in America must not come at the expense of jobs at successful local dealerships," Kosmas said. "These small businesses employ thousands of Central Floridians and make important investments in our communities. Our bipartisan legislation will save jobs, protect the rights of small business owners, and help our local economy by ensuring that GM and Chrysler honor their contracts with dealerships."

The Automobile Dealer Economic Rights Restoration Act of 2009 would do the following:

* Restore the economic rights of General Motors and Chrysler car dealers as they existed prior to each company's bankruptcies.

* Preserve General Motors and Chrysler car dealers' rights to recourse under state law.

* At the request of an automobile dealer, require General Motors and Chrysler to reinstate franchise agreements in effect prior to each company's bankruptcies.

* Make clear that the legislation is not intended to make null and void the court-ordered transfer of assets from Chrysler LLC to New CarCo Acquisition LLC or the transfer of General Motors assets that could be approved by a court after the introduction of the Act.

This builds on the bi-partisan letter signed by over 100 members of Congress, including Kosmas, which was sent to the President yesterday and a letter that was mailed on May 19, to Steven Rattner, senior advisor on Auto Issues at the Treasury Department.