Fax: 402-476-8859, Cell: 402-580-8815

john@nebraskafarmersunion.org

or Graham Christensen Cell: 402-217-5217

graham@nebraskafarmersunion.org

FOR IMMEDIATE RELEASE

June 15, 2009

Nebraska Farmers Union Criticizes

Decision To Shut Down Rural Dealerships

Lincoln, Nebraska—Recently General Motors notified nearly 1,100 of its dealers, one in five of their dealerships would be terminated by late next year. Chrysler intends to terminate 1,900 of their dealers, about one in four of their dealerships. A high percentage of these dealerships are located in rural communities, family owned businesses, and profitable.

Pender GM dealer Harold Janke of Janke Auto Company is one of many Nebraska dealerships on that list. Harold and his wife have owned and operated this ‘Ma and Pa’ business for 5 years. This dealership includes a service shop that employs another 5 or 6 people and the car business has been a tradition that has been in the Janke family for 55 years.

The decisions to terminate dealerships follow GM and Chrysler’s reorganization effort after declaring bankruptcy. However the assumption that manufacturers own these dealerships, are inefficient, unprofitable, and cost GM and Chrysler money to maintain are not accurate or true.

“At a time when we are spending taxpayer money to create jobs, why would we terminate dealerships that are profitable businesses, provide good service to their communities, and provide jobs? These dealers are economic hubs to their communities, support community activities, and have very loyal buyers of GM and Chrysler products. The reason GM and Chrysler went broke in the first place was not because of a surplus of dealers, it was because of incompetent management and a shortage of customers. We call on GM and Chrysler to re-think their misguided approach to terminate dealerships,” said NEFU President John Hansen.

Like Janke Auto Company, many other rural Nebraska dealerships have been targeted. Nebraska dealers alone employ more than 6,000 people and dealer’s payroll exceeds 12% of the Nebraska’s retail payroll. “Closing these businesses will force rural customers to travel greater distances to spend their dollars away from their home communities. In addition, many loyal customers may never get over the hard feelings and ill will that GM and Chrysler executives have created,” Hansen said. Hansen thanked members of the Nebraska Congressional delegation for their support of Nebraska based dealers, and urged their continued support and pressure.

“If we want to salvage the domestic auto industry, and Nebraska Farmers Union does, then let’s start dealing with the underlying economic reasons the domestic auto industry went broke in the first place. GM and Chrysler need more customers, more profitable rural dealers, more fuel efficient products to sell, and fewer misguided out of touch corporate executives who continue to be deaf to what Americans repeatedly say they want,” Hansen concluded.

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