West Virginia Governor Asks President To Help Local Car Dealerships

May 22, 2009 -- CHARLESTON, W.Va. - West Virginia Governor Joe Manchin today wrote a letter to President Barack Obama, urging him to carefully consider the potential economic consequences of plans by General Motors and Chrysler to close large numbers of locally owned dealerships as part of their reorganization.

In the letter, the governor wrote that he joins West Virginia’s congressional delegation in expressing concern about the economic impact and job loss that could come from closing dozens of small businesses that have for years been a part of communities across the state.

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“It is a plan that will eliminate dozens of longstanding franchised dealers in our state and unnecessarily put hundreds of West Virginians out of work and leave customers with broken promises and the inability to maintain their expensive autos,” the governor wrote. “The loss of vehicle sales from the closing of many of our hometown dealerships will have a tremendous impact on local governments because of the loss of business and occupation taxes.”

The governor also said that closing dealerships would affect the state’s already strapped state road fund, and would result in a substantial loss of payroll taxes and consumer sales tax.

“I ask you to carefully consider how eliminating these successful local businesses will benefit the auto industry or our nation’s economy,” the governor wrote. “I cannot understand why manufacturers that are receiving federal bailout dollars can shut down independent businesses that pay their own way.

“These family-owned businesses are Chrysler’s and General Motors’ customers – they generate revenue for these large companies and they are a strong part of the fabric of our state.”

Source: West Virginia Governor