From AAIA Capital Report

WASHINGTON, D.C. — Following more than a week of heavy lobbying from both automakers and new car dealers, the U.S. House of Representatives voted to force Chrysler and General Motors to reinstate dealers that were closed during the car companies’ bankruptcy restructurings. The measure was included in a $24.2 billion House Financial Services and general government appropriations bill for the upcoming year and was passed by a vote of 219-208. The dealership provision of the legislation would prevent Chrysler and GM from receiving money budgeted for reorganization if they continue to shut down dealerships.

There are also stand-alone bills with substantial bipartisan support introduced in both the House and the Senate. The Obama administration has made it clear that they oppose any legislative efforts to reverse or prevent the closing of the dealerships impacted by the reorganization. The legislation now moves to the Senate where its prospects for passage are less clear.