[Congressional Record (Bound Edition), Volume 156 (2010), Part 6] [House] [Pages 8592-8594] [From the U.S. Government Publishing Office, www.gpo.gov]RECOGNIZING SIGNIFICANT CONTRIBUTIONS OF U.S. AUTOMOBILE DEALERSHIPS Mrs. CAPPS. Madam Speaker, I move to suspend the rules and agree to the resolution (H. Res. 713) recognizing the significant contributions of United States automobile dealerships, and expressing the sense of the House of Representatives that in the interest of equity, automobile dealers whose franchises have been terminated through no fault of their own be given an opportunity of first consideration once the auto market rebounds and stabilizes, as amended. The Clerk read the title of the resolution. The text of the resolution is as follows: H. Res. 713 Whereas auto dealers have deep roots in local communities and have helped manufacturers with long-term customer relationships that create brand loyalty and maintain customer convenience; Whereas dealerships across the country provide jobs, give direct investments to local economies, and supply tax revenue to State and local governments; Whereas virtually all new cars and light trucks bought in the United States are sold through franchised dealers; Whereas dealers are independently owned, and combined, represent the largest retail business in the United States, with approximately $693,000,000,000 in revenues in 2007; Whereas auto dealers are significant employers in local communities across the country; Whereas franchised dealers employ over 1,100,000 people, comprise nearly 20 percent of all retail sales in the United States, and, in total, pay billions annually in state and local taxes; Whereas the Nation's 20,700 independent franchised new car dealerships comprise an industry that is largely privately held, with private ownership accounting for 92 percent of the market; Whereas the franchised dealership system in the United States is the independent link between the manufacturer's assembly line and the consumer and its functions include, but are not limited, to the following-- (1) selling the product and providing information for consumers; (2) holding vehicle and parts inventory; (3) performing service and providing parts to fulfill manufacturer warranty obligations; (4) handling product safety recalls; (5) facilitating the exchange of used vehicles; and (6) arranging financing for consumers; Whereas some restructuring of dealer networks was in the public interest and necessary to increase the competitiveness of automobile manufacturers; Whereas the economic downturn put thousands of jobs at risk, including those at automobile dealerships and automobile manufacturers; and Whereas auto dealers will play a key role in any effort to revive the United States auto industry: Now, therefore, be it Resolved, That-- (1) the House of Representatives recognizes the significant contributions of United States automobile dealerships; and (2) it is the sense of the House of Representatives that automobile dealerships which have been successful and are being closed not of their own doing, but instead as a function of the auto market as a whole, should be given consideration to obtain a dealership franchise when the automobile market rebounds and stabilizes. The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from California (Mrs. Capps) and the gentleman from Pennsylvania (Mr. Pitts) each will control 20 minutes. The Chair recognizes the gentlewoman from California. General Leave Mrs. CAPPS. Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material in the Record. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from California? There was no objection. Mrs. CAPPS. Madam Speaker, I am pleased to yield such time as he may consume to the gentleman from Texas (Mr. Al Green). Mr. AL GREEN of Texas. Madam Speaker, I thank the managing Member for yielding me this time, and I also thank the Member who is managing for the other side for allowing this important piece of legislation to come to the floor. I want to thank Representative Hensarling who is not here today. He is in Financial Services, and we have a hearing there that is exceedingly important; but for that, I am confident he would be here. He and I serve on the committee together. Representative Hensarling and I have been working on this resolution for some time. For us it has become a means by which we not only developed what I believe to be a good piece of legislation for the House, but also we have developed a good relationship as a result of working together. This is truly a bipartisan piece of legislation. We have 107 cosponsors from both sides of the aisle. I also would like to thank Representative John Dingell for helping us with this piece of legislation. He, at a crucial time, stepped forward to help us move the legislation such that we are now on the floor with it. I would also mention the staff members from Congressman Hensarling's office and from my office, my staff, I thank you for what you have done, Representative Dingell's staff, and all of the persons who have been associated with this piece of legislation, especially Representative Capps because I thank you for helping us get it to the floor as well. This resolution, H. Res. 713, does two things: it recognizes the significant contributions of the auto dealerships; and it expresses the sense of the House of Representatives that dealerships which were successful, and I highlight and underline successful, dealerships that were successful and are being closed, some have been closed because of the economic crisis, that these dealerships be given consideration when the market rebounds and we start to bring on new auto dealerships. It is an opportunity for consideration. With these two things in mind, I would share these thoughts: one, that the auto dealerships are the face of the auto industry within our various communities. As the face of the industry, they do more than simply sell cars, which is a good thing to do. Selling cars promotes growth and jobs, and helps us have people who are employed, but they do more than this. They also engage in being good corporate citizens, which means that they allow their largess to be shared by various not- for-profit organizations in the community, various community organizations that are involved at the grass-roots level in communities. For example, the Little League baseball teams will often be sponsored by auto dealerships. Other small, but significant, organizations in our communities benefit from these auto dealerships. They are across the length and breadth of the community in large cities and small towns. They make it possible for us to experience the opportunity of having largess that we would not ordinarily have, and I will tell you that that largess is being sorely missed at this time of economic crisis. So we want to get them back. We want to get them back online because they are good corporate citizens. My next point, 20,000 independently owned dealerships exist across the country--maybe a little more, maybe a little less, depending on who is counting and how you count--employing about 900,000 people, new car dealerships alone. These 900,000 jobs are jobs that our country benefits from greatly, and we have missed many of the jobs because of the dealerships going offline. We want to see these dealerships give the community the job base it has enjoyed by virtue of these many persons who were trained to do various and sundry things, giving these jobs back to the community. Bringing them back will be an important part of these dealerships coming [[Page 8593]] back online as a result of the rebound in the economy. In 2008, there was about $650 billion that we can call revenue generated from the dealerships. They are truly small businesses at their best, and some of them large businesses because of just the sheer amount of revenue that they generate. But they are small businesses that benefit greatly from what we are trying to do in Financial Services today, but they are also small businesses that cause a community to benefit greatly because of what they do in the various communities wherein they are located. I would simply remind us that as we vote on this, please, dear friends, give thought to your community; give thought to the fact that this is a small business that brings jobs back to the community; give thought to the fact that these corporations are good corporate citizens, for the most part; that they are part of the fiber and the fabric of the communities; that they help the Little League baseball teams, the Girl Scouts and Boy Scouts, all of these organizations that benefit from their largess; and give some thought to the fact that but for them, many of our communities would not be as vibrant as they are. In fact, many of our communities are not as vibrant as they were because we have lost some of these various small businesses, these auto dealerships. I beg all of my colleagues, please support this resolution. It encourages us to do the right thing, and that is give these dealerships that were successful that went offline the opportunity, not because of some fault of their own but because of some economic crisis that they had little control over. In fact, no control over for the most part. Mr. PITTS. Madam Speaker, I yield myself such time as I may consume. Madam Speaker, I rise in support of H. Res. 713, expressing the sense of the House of Representatives that the automobile dealers whose franchises were terminated through no fault of their own, be given an opportunity of first consideration once the auto market rebounds and stabilizes. Dealerships play an important function in the distribution model. It was the economic downturn that exacerbated the already slowing automobile sales. Some dealers assert that they had sufficient sales and should not have been marked for closure. Despite their importance to manufacturers, the fact that they were well-run businesses and the Federal Government's bailout of GM and Chrysler, to the tune of $80 billion, many franchises were taken away from these dealerships. Jobs supported by these dealerships were eliminated, and this lost income continues to plague American families. In addition, the lost tax revenue and absence of those dealerships that played an important civic role in their communities has further strained local communities. When the auto market recovers, these dealerships should be given an opportunity to reclaim their franchises as manufacturers expand their distribution channels. I would like to commend Congressman Green and Congressman Hensarling for their leadership on this issue. I support the resolution and urge my colleagues to support it. Madam Speaker, I have no further requests for time, and I yield back the balance of my time. Mrs. CAPPS. Madam Speaker, I would like to make the point that several minor changes were made in House Resolution 713 in order to clarify that the focus of the resolution is on automobile dealerships and not on automobile manufacturers. Mrs. MILLER of Michigan. Madam Speaker, I rise in strong support of H. Res 713 which recognizes the contributions of automobile dealerships, both to the American economy, and the economy of my home state of Michigan. Michigan is at the very heart and soul of the domestic auto industry, and it is an industry that has served America well. Automobile dealerships around the country have provided millions of Americans an opportunity for a good job with good benefits and a secure retirement. The average dealer in this nation, Madam Speaker, employs over 50 people. They are not just a place to purchase a car, but they are community leaders, sponsors of little league teams and rotary club members. In many cases, they are the biggest job providers in their communities. Automobile dealers create long-term relationships with members of their communities and provide services beyond the sale of a car. They also provide parts and services for vehicles, handle product safety recalls and provide information for customers. During the economic downturn, 1,900 automobile dealerships, some that were successful, were closed not because of any fault of their own, but because of forces beyond their control. Thankfully, the auto industry is showing signs of recovery, with Ford, Chrysler and General Motors making a profit for the first time in years. Those dealerships that were closed should be given the first opportunity to obtain a franchise when auto manufacturers seek new partners to open future dealerships. I recognize the great contributions that the automobile industry has given back to the community, and I fully intend to support this resolution. Ms. RICHARDSON. Madam Speaker, I rise today as a cosponsor of H. Res. 713, which recognizes the significant contributions of United States automobile dealerships, and expresses the sense of the House of Representatives that automobile dealers that have been forced to close be given a fair opportunity to reenter the automobile market once it rebounds and stabilizes. The automobile dealer industry has an important place in our country's history and is a critical part of our economy. It is critical that we recognize the important role of automobile dealers, help them survive the ongoing economic downturn, and pave the way for their future success. I thank Chairman Waxman for his leadership in bringing this resolution to the floor. I also thank the sponsor of this H. Res. 713, Congressman Green, for taking the time to recognize the important contributions of automobile dealers in our nation's history and their vital role in our rebounding economy. Madam Speaker, the automobile and the automotive industry has long been a symbol of American ingenuity and a source of American prosperity. Franchised automobile dealers have played and continue to play a critical role in the automotive industry: the franchised dealership system in the United States is the independent link between the manufacturer's assembly line and the American consumer. The automobile dealership industry is a vital part of the national economy. Virtually all new cars and light trucks are sold through franchised dealers. Dealers represent the largest retail business in the United States, with approximately $693 billion in revenues in 2007. Franchised dealers employ over 1,100,000 people, comprise nearly 20 percent of all retail sales in the United States, and, in total, provide billions of dollars annually in tax revenue. Madam Speaker, automobile dealers also play an important role in local communities across the country. Auto dealers have deep roots in local communities and have helped manufacturers with long-term customer relationships that create brand loyalty and maintain customer convenience. Dealerships across the country provide jobs, give direct investments to local economies, and supply tax revenue to State and local governments. The economic downturn of the last two years has put thousands of jobs at risk, including those at automobile dealerships and automobile manufacturers. I have witnessed the effect of the recession on car dealerships in my district. That is why I recently introduced H.R. 4897, the Drivers AID Act of 2010. By making interest payments on new car purchases deductible, this bill will help consumers in buying cars, dealers in selling cars, and auto manufacturers in making cars. Madam Speaker, we must take action to help auto dealers play a key role in the revival of the United States' economy. I urge my colleagues to join me in supporting H. Res 713. Mrs. CAPPS. Madam Speaker, I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentlewoman from California (Mrs. Capps) that the House suspend the rules and agree to the resolution, H. Res. 713, as amended. The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the resolution, as amended, was agreed to. The title of the resolution was amended so as to read: ``Recognizing the significant contributions of United States automobile dealerships, and expressing the sense of the House of Representatives that in the interest of equity, automobile dealers be given consideration to enter the automobile market once it rebounds and stabilizes.''. A motion to reconsider was laid on the table. [[Page 8594]] ____________________