Nader Calls on Congress to Review GM Bankruptcy Plan

WASHINGTON, May 18, 2009 /PRNewswire-USNewswire/ -- Today in a letter to Senator Chris Dodd and Congressman Barney Frank consumer advocate Ralph Nader called on the Senate and House banking committees to hold thorough hearings to protect taxpayers' investments and seek answers to several questions such as:

  --  Is the task force right in pushing for elimination of as many brands
      as it has demanded?
  --  Is the task force asking for too many plants to close?
  --  Do GM and Chrysler really need to close as many dealerships as have
      been announced? Is the logic of closing dealers to enable the
      remaining dealers to charge higher prices; and if so, why is the
      government facilitating such a move? Is it reasonable and fair for GM
      to impose liability for disposing of unsold cars on dealers with which
      it severs relations, as Chrysler has apparently done?
  --  Has the task force evaluated the social ripple effects on suppliers,
      innovation, dealers, newspapers, banks and others that hold company
      stock and/or are company creditors, and other unique harms that might
      stem from bankruptcy?
  --  Would a government-driven bankruptcy process comport with the rights
      of owner-shareholders?
  --  Why has the task force maintained the Bush administration-negotiated
      obligation for unionized auto workers at GM and Chrysler to accept
      wages comparable to those in non-unionized Japanese company plants in
      the United States?
  --  Is the task force obtaining guarantees that, after restructuring with
      U.S. taxpayer financing, GM cars sold in the United States be made in
      the United States? If not, why not?
  --  How will bankruptcy affect GM's overseas operations, with special
      reference to China and GM corporate entanglements with Chinese
      partners? Are they and their profits being exempted from the
      restrictions and cutbacks imposed on domestic operations? If there is
      such a disparity, is it reasonable and unavoidable?
  --  How will bankruptcy affect GM's obligations to parties engaged in
      pending litigation in the courts with GM regarding serious injuries
      suffered because of design or product defects?

  --  What guarantees is the task force obtaining to ensure that the GM of
      the future invests in safer and more fuel efficient vehicles, and what
      investments will the new company make in ecologically sustainable
      technologies? How will a potential bankruptcy filing affect, ignore or
      preclude any such future investments and commitments?

  See: Nader.Org for the full text of the letter.