Colorado Moves to Steer Aid Toward Closed Car Dealers

A lot of new car dealers have been looking for other work in the past year in the wake of the bankruptcies of General Motors and Chrysler. In Denver, GM told several local dealers to start winding down their businesses. Chrysler moved more quickly; last spring several dealers were forced to shut down in 28 days.

Some of those closed dealers were outraged when Chrysler re-opened dealerships within eyesight of their old lots earlier this year, saying that the automaker had unfairly given their franchises to someone else. The state legislature took notice. A law to force the automakers to give their former dealers the right of first refusal up to 10 years should they open a new dealership in the same area quickly passed the House.

Producer Terry Rubin and I examine the dealers’ arguments and the automakers’ counter-arguments as the bill nears approval in the state Senate in our story on Monday’s PBS NewsHour. Stay tuned.