Nader Calls on Congress to Review GM Bankruptcy Plan

WASHINGTON, May 18 /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.

SOURCE Ralph Nader

Ralph Nader, +1-202-387-8034