Bill would protect those who lost their dealerships
DANVILLE – Legislation aimed at helping Illinois automobile dealers that lost a franchise because of manufacturer reorganization moves to the state Senate next week.
The bill, sponsored by state Rep. Bill Black, R-Danville, shot through the House with extraordinary speed in the first week of the fall veto session. It was heard in a committee on Oct. 14 and passed the full House, 115-0, the next day.
But it faces a uncertain future in the Senate, Black said, because automobile manufacturers are attempting to amend the bill. Any significant amendments would delay the legislation for this year since the Legislature is scheduled to be in session only three more days in 2009.
Calls to the lobbyists for the automobile manufacturers were not returned.
Black sponsored the bill (HB 4628) at the request of Gary Knight, president and owner of Carmack Car Capitol in Danville, who also is on the board of the Illinois Automobile Dealers Association.
"What the dealers were discovering," Black said, "was that as these companies emerged from bankruptcy, they were saying, 'When we emerge leaner and meaner, we might want a dealership in there where you are, but we don't want to have to give it to you.'
"So this bill just says, 'Wait a minute, for the next four years, not forever, if you want to re-establish a dealership you have to go to the dealer who lost his or hers and say, 'Do you want it back?'
"They get the first right of refusal. I think that's fair."
Knight said that 44 Chrysler and 66 General Motors dealerships in Illinois were lost through bankruptcy proceedings.
"What they're doing is going right back in and opening a new dealership. It's ridiculous," he said. "They're using the cloak of bankruptcy to do this."
Knight, who once had Chrysler and Jeep franchises, said Chrysler is not discussing returning to the Danville area. "I'm just working to protect the right of other dealers in Illinois," he said.
He said he received nothing from Chrysler when it canceled his franchise. "I received no compensation, not one penny for Chrysler when they closed my dealership," he said. "I got nothing but a kick to the curb. At least with this (bill) I could say 'yes' and maybe I could have some option, like reselling it or getting some compensation."
Several states have already passed similar laws protecting automobile dealers, Black said, and Congress is considering a federal law.
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