Rodney Alexander & Greater Ouachita Port

There is a new post on the other blog regarding my investigation into the campaign contributions to Rep. Rodney Alexander.

http://congressmoneycheck.blogspot.com/2009/06/investigations-rodney-alexander-greater.html

New Post on Rodney Alexander

I have posted some information on Rep. Rodney Alexander paying his two daughters $225,000 in campaign funds since 2002 on my new blog.

Here's the link:
http://congressmoneycheck.blogspot.com/2009/06/congress-investigations-rodney.html

New Blog Coming Up

With the Chrysler dealer story winding down, I will begin researching the campaign contributions and expenses of our politicians. The research will include possible nepotism, enrichment of family members with campaign funds, earmarks, contributions from earmarks recipients and/or lobbying firms, and other investigations.

I will have a new blog up soon. Stay tuned.

Link to the new blog:
http://congressmoneycheck.blogspot.com/

Chrysler-Fiat Deal Goes Through; 789 Chrysler Dealers Close Doors

"The Supreme Court on Tuesday cleared the way for Chrysler LLC's sale to Fiat, turning down a last-ditch bid by opponents that included consumer groups and three Indiana pension plans. The court rejected a plea to block the sale of most of Chrysler's assets to the Italian automaker. Chrysler, Fiat and the Obama administration had warned that the high court's intervention could have scuttled the sale."
...
"The court issued a brief, unsigned opinion explaining its action. To obtain a delay, or stay, someone must show that at least four of the nine justices find that the issue raised is serious enough to warrant hearing a full appeal and that a majority of the court will conclude the lower court decision was wrong."

"'The applicants have not carried that burden,' the court said."

http://news.yahoo.com/s/ap/20090610/ap_on_go_su_co/us_supreme_court_chrysler_33

Rep. Steny Hoyer on Dealer Closings (Weekly Off-Camera Interview)

House Majority Leader Steny Hoyer held his weekly off-camera interview for reporters today. Among the topics discussed were the PAY-GO rule, D.C. Voting Rights, and the Dealership closings. Some of Hoyer's comments were interesting.

From the MSNBC article on the off-camera interview:

Lastly, Hoyer made an interesting point about the recent closings of numerous car dealerships across the United States. In a conference call last week with the White House task force on the auto industry, Hoyer asked the experts, "What does it save the manufacturer to shut down dealerships?"

The answer he received from the Obama team was "practically nothing," Hoyer said.

For this reason Hoyer reiterated his support for "The Automobile Dealer Economic Rights Restoration Act of 2009" which would restore auto franchise agreements to GM and Chrysler dealers who have had to close due the companies' recent declaration of bankruptcy saying: "By closing [dealerships] there is no economic benefit to the manufacturers. If that is the case I think it is irrational to close down dealerships that average 53 workers and quite possibly increase unemployment by one hundred thousand people."

U.S. Supreme Court Delays Merger Between Chrysler & Fiat

• The United States Supreme Court has delayed the sale of Chrysler to Fiat
• Lawyer for Indiana funds argues that "the Obama administration illegally used federal bailout money earmarked for financial institutions to help Chrysler"
• Obama Administration had urged Supreme Court to not hold up the Chrysler-Fiat deal

Statement from Justice Ruth Bader Ginsburg:

UPON CONSIDERATION of the application of counsel for the applicants, and the responses filed thereto,

IT IS ORDERED that the orders of the Bankruptcy Court for the Southern District of New York, case No. 09-50002, dated May 31 and June 1, 2009, are stayed pending further order of the undersigned or of the Court.

http://www.nytimes.com/2009/06/09/business/09chrysler.html?_r=1&hp

"Shotgun Wedding between Chrysler and Fiat Arranged by Federal Government?

Bloggers from Newsbusters and the Wall Street Journal have posted articles that talk about a "shotgun wedding" between Chrysler and Fiat that may have been pushed by the U.S. Government over objections from Chrysler executives.

Based on information released in the past few months, we can assume the following:

1. The Obama Task Force cut the Chrysler advertising budget in half.

http://patriotroom.com/article/obama-cuts-chrysler-ad-budget-in-half

2. The Obama Task Force mandated dealership cuts in exchange for more government loans.

http://www.wilx.com/news/headlines/44848227.html

3. The Obama administration rushed the merger of Chrysler and Fiat despite objections from Chrysler execs.

If the Task Force forced the merger of Chrysler and Fiat, mandated dealership cuts in exchange for more money, and cut the advertising budget in half, is it plausible that the Task Force had a say in deciding how many dealers were cut and which dealers were cut?


Excerpts from the Newsbusters blog:

The Obama administration rushed an alliance between Chrysler LLC and Fiat SpA despite Chrysler's worries about Fiat's financial health and its willingness to share technology, according to internal company emails.

The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. A Chrysler adviser at one point said the deal risked looking as if the U.S. auto maker and the Treasury Department, which helped broker the pact, were "in bed with a shady partner." In another note, an official referred to the Treasury Department as "God."

Despite the push to do a deal with Fiat, Chrysler advisers continued into April urging the Treasury to think again about a potential merger with GM. Earlier talks between the two auto giants had broken down in November, and the Obama administration put little stock in the idea.


http://newsbusters.org/blogs/tom-blumer/2009/06/06/shotgun-wedding-court-docs-reveal-govt-likely-forced-chrysler-fiat-deal-

Comments from Washington Politicians on the Chrysler Closings

(June 3, 2009)

“I think it’s starting to hit all of us in the face what government-managed economies feel like,” said Sen. Jim DeMint (R-S.C.).

Rep. Darrell Issa (R-Calif.), ranking member on the House Committee on Oversight and Government Reform, wrote a letter to the Treasury Department criticizing the administration for “a misuse of the authority” in its work on the Chrysler dealership closings.

http://thehill.com/leading-the-news/senators-criticize-closings--of-gm-chrysler-dealerships-2009-06-03.html

Rep. Chris Van Hollen (D-MD) (May 19th, 2009)
“I’m deeply concerned about the potential loss of local auto dealership jobs. Last week, I signed on to a Congressional letter to the Treasury’s Auto Task Force, headed by Steven Rattner, to request the Task Force reconsider the forced closure of dealerships across the country in favor of a more flexible and transparent process that would allow for market forces to consolidate dealerships. In total 68 members of Congress, both Republicans and Democrats from districts all over the country, signed on in support of the letter.

http://insidecharmcity.com/2009/05/20/van-hollen-statement-on-dealerships-at-risk-for-closure-in-montgomery-county/

“Our constituents are rightly concerned about this latest economic threat to their communities, which is why I want to understand the reason General Motors and Chrysler took such quick action to cut off dealerships that cost them little or no money to maintain,” said Senator Cardin (D-MD) “The end-goal is clear: restore the viability of the U.S. auto industry. But how will this dramatic action help them to survive?”

“I have met with dealers and concerned constituents all over Maryland. They want to know why General Motors and Chrysler so quickly closed dealerships operating at little or no cost to the car companies. They’re not the only ones,” Senator Mikulski (D-MD) said. “As Maryland’s senior senator, I am committed to making sure Marylanders know the circumstances surrounding this decision.”

We want to support General Motors and Chrysler and help the Auto Task Force in its immensely challenging job. At the same time, we have a responsibility to our constituents to explain the sacrifices they are being asked to make. We have yet to see clear arguments to justify the rapid shut down of so many car dealerships. These closings will cause greatly increased disruptions, bankruptcies and unemployment in many communities and we need to understand how they will help General Motors and Chrysler to become profitable, viable companies in the future. We urge you and the Task Force to do all you can to keep Congress advised regarding dealership closing plans and the role these closings play in the future viability of General Motors and Chrysler.

http://insidecharmcity.com/2009/05/26/cardin-mikulski-question-geithner-on-dealership-closings/

Democrats Showing Concern Over Chrysler Dealer Closings

A letter expressing concern over the 789 Chrysler dealer closings has been circulated and signed by Steny Hoyer, Senate Majority Leader Harry Reid, and several other prominent Democrats on Capitol Hill. It's kinda weird to hear these Democrats say that the free market should decide if a dealer should stay open or close.

Excerpts from the letter:

Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. Furthermore, we believe car dealers will be key players in any effort to revive the American auto industry.

However, we are concerned that manufacturers are closing profitable dealerships to circumvent current contracts which could require expensive buy-outs under normal conditions. We are also concerned about allegations that dealers that have previously stood up for their rights against the manufacturers are being targeted by these closures. We believe that the forced closures of profitable dealerships needs to be scrutinized by the Task Force to prevent additional future financial loses to General Motors and Chrysler and job loses across the United States.

http://www.politico.com/politico44/perm/0609/pushback_on_chrysler_4a29bba0-af21-4dd4-9d76-c59c5aaf8f5d.html

http://patriotroom.com/article/shocker-dems-tell-obama-to-let-the-market-decide-dealership-closures

Chrysler National Dealer Council; Donor Information

I saw the link to this letter from a post on FreeRepublic.com. After reading the letter, I analyzed the donor information of the dealers associated with the "Chrysler National Dealer Council" that signed this letter.

National Dealer Council Letter To Customers

May 26, 2009

To: All Chrysler, Jeep® and Dodge Customers
From: Chrysler National Dealer Council - 17 Chrysler, Jeep and Dodge dealers elected by the dealer organization to represent all dealers’ interests.

On behalf of the Chrysler National Dealer Council and the vast majority of our membership, we would like to voice our strong support for the agreement Chrysler LLC has reached to establish a global strategic alliance with Fiat to create a vibrant, new car company, and our gratitude for the strong support of the U.S and Canadian governments.

We fully understood that we had to join other major constituent groups -- including Chrysler’s employees, unions, suppliers and lien holders -- in making the sacrifices and concessions required to build the new Chrysler into a viable and highly competitive car company.

Unfortunately, that also means reducing the number of dealerships in the Chrysler, Jeep and Dodge network, including some of our own. We regret any hardship our long-time Chrysler Dealer colleagues and friends face as we go through this process. While this is a painful and difficult step, Chrysler and its dealer body will assist with the redistribution of products from the dealers not moving forward with the new Company.

The move to a strong dealer body of 2,392 dealers strengthens growth to invest in facilities to make for a more delightful owner experience and improved customer service. Unfortunately because the industry has declined nearly 40 percent in the past year, there simply is not enough business to support more dealers.

Auto manufacturers and their dealer networks ultimately share a common fate. Our success or failure is always mutual. We need a healthy, profitable Chrysler. Chrysler needs a healthy, profitable dealer network.

Our customers can rest assured that a leaner, stronger Chrysler, Jeep and Dodge dealer network is emerging to better meet their needs. We continue to provide all warranty and service contract repairs for our customers. We have exciting vehicles to sell with the highest level of quality in Chrysler’s long history. And we offer extremely competitive prices and attractive financial incentives. Chrysler will communicate to all owners any dealership location changes for sales and service.

We remain profoundly grateful for the support of the millions of owners of Chrysler vehicles. We take enormous pride in the contributions we make to our communities, local economies and this great industry. We are honored by the trust you have placed with us and look forward to continuing to serve you for many years to come.


Here’s what I found on the dealers on the list:

1. Mickey Anderson is a GOP donor.
2. Carlos Hidalgo and McSkimming gave no money to candidates, but their local Dodge competitors will be closed down. They will each be the only chrysler dealers in their areas.
3. John Myers gave no money to candidates, but their local Jeep competitor will close. Myers will be the only local Chrysler dealer in the area.

Since 2007, the following dealers gave money to candidates:

1. Jim Arrigo gave $3,300 to Ron Klein (D)
2. Chuck Eddy gave $500 to John Boccieri (D)
3. Charles Foulke gave $6,900 to Robert Andrews (D) and $6,300 to various Democrats from 1994-2000
4. Andrew Palmer gave $750 to Russ Feingold (D) and $500 to Paul Ryan (R)
5. John Schenden gave $900 to Joan Fitz-Gerald (D)

http://www.chryslerllc.com/en/news/article/?lid=letter_from_chrysler_national_dealer_council