Car dealers say they are frustrated and disappointed that Congress has failed to pass a $14 billion loan package that is intended to save Chrysler and General Motors from bankruptcy, and they warn that the impact on the economy would be severe if those companies are allowed to fail.
In Maryland, about 26,000 people are employed at the state's 340 auto dealerships, which contribute significantly to local philanthropy, from Little League to the state's Teacher of the Year Award. All of that is at risk, dealers said. Between 5,000 and 6,000 dealer employees could lose their jobs in Maryland if GM and Chrysler fail, dealer representatives said.
"If I don't have a product to sell, I hurt myself and the community," said John Miller, co-owner of Miller Bros. Chevrolet and Cadillac in Ellicott City, a franchise that has been in the family - and in Howard County - since 1928. "The legislature is being very conservative, and as a citizen I think they should be, but I don't know if they understand what the automotive industry means in terms of jobs and health care and the whole GDP of the country. It's very, very big."
Dealers directed their ire at the Republican leadership in the Senate, which has balked at approving the loan bill that passed the House on Wednesday night. Republicans said the bill, drafted by the White House and congressional Democrats, didn't demand the fundamental restructuring necessary to return the automakers to profitability.
Dealers said their cars are now of higher quality than ever, but customers are wary. The rescue package could have restored some confidence but has failed even though it was less sweeping than the bank bailout.
"I'm greatly disappointed in the Republican Party in how they're handling this. To me, it's atrocious," said Bob Frankel, owner of the Frankel Automotive Group, which has four GM franchises in the Baltimore region. He said he believes that GM and Chrysler can hold out until Jan. 20, when President-elect Barack Obama takes office, and that a bill would pass at that point.
Employees of the automakers were just as upset. Wanda Hopkins, a 54-year-old assembly line worker at the GM plant in Newport, Del., is just a year away from reaching three decades with the company, when she would qualify for a pension. She is worried she won't make it.
