Chrysler dealers to meet Congress, gov officials

DETROIT (Reuters) - Chrysler dealers, set to press lawmakers to rescue U.S. automakers, said on Monday that Washington fails to understand how severely an industry bankruptcy could hurt the United States.

"When people talk about 'let them go'... I just like to sit down with them and ask the question: 'Do you really know the impact of what you're saying, what it means to this country?'" Jim Arrigo, a Chrysler dealer in Florida, told reporters on a conference call.

"I really don't firmly believe there is enough understanding of the magnitude of what we're dealing with today here in Washington," said Arrigo, one of 33 Chrysler dealers planning to meet with members of Congress and the Bush administration.

The U.S. Senate plans on Monday to take up a $25 billion bill that would bail out distressed U.S. automakers, amid intensifying lobbying efforts from industry executives who have said it would be difficult to survive without government aid.

But critics, including some Republicans and administration officials, have opposed providing aid without addressing the root causes of the companies' troubles.

The Bush administration has already approved $25 billion in low-cost loans to help automakers and their suppliers retool plants and meet new fuel economy mandates.

The prospect of bailing out Chrysler LLC has faced more scrutiny than potential federal assistance to General Motors Corp because the No. 3 U.S. automaker is owned by private equity firm Cerberus Capital Management.

But the dealers said it is wrong to think Cerberus is the only one with a stake in Chrysler's survival. Chrysler has 3,372 dealers nationwide with more than 140,000 employees.

"Whether stockholders own us or an investment firm owns us ... it's all basically the same," said Chuck Eddy, an Ohio-based dealer.

"There are investors in Chrysler and Cerberus and they have got people they have to answer to when it comes to the investment side of the business," Eddy said.

GM, Ford Motor Co and Chrysler, burning through cash amid a global credit crunch, have sought emergency assistance to help them survive the decline in U.S. auto sales to near 25-year lows.

The chief executives of GM, Ford and Chrysler are scheduled to testify Tuesday at a U.S. Senate committee hearing on the bailout.

(Reporting by Soyoung Kim; editing by Richard Chang)