The 60 Second Update with

Congresswoman
Michele Bachmann

3. Hundreds of dealerships across the country are being shut down. Who's responsible for the closings and what impact will they have?

GM and Chrysler, under the direction of President Obama’s Auto Task Force, are deciding which dealerships will lose their contracts.  In the Sixth District of Minnesota we know of at least five dealerships that are being forced to close or lose part of their business.   It remains a mystery what criteria the Administration is using to make these judgments.

For example, one GM dealership that received a closure notice in Minnesota was a 90-year-old, family-owned business that was recently appraised at $15 million.  They are a community landmark and a successful business.  After dedicating almost a century to building their dealership, this family will lose everything within weeks.  GM even claims the right to confiscate their customer lists and service records.  This is a taking of these dealers’ private property.  We can only assume that the taken property will be given to another dealership lucky enough not to have been chosen for closure—and as far as we can tell, entirely without compensation.

Perhaps the most disturbing part the federal government controlling a private company, like GM, is that Washington is now in the middle of all business decisions. And political interests do not always coincide with business interests. Take, for instance, the reported example in Massachusetts. Congressman Barney Frank put a call into GM CEO Fritz Henderson on behalf of a GM distribution center in Norton, MA that was slated for closure as part of GM's restructuring plan. After talking with the Congressman, the decision to close the center, which would have put about 90 people out of work, was reversed. I'm not faulting Barney Frank for his actions; he was an advocate for his constituents.  But, he should not be part of this equation.

These critical business decisions should not be vulnerable to political influence and we need to take a good hard look at this government power grab. Not only is it unprecedented and unconstitutional, it will ultimately prove disastrous.

Question 4. Why has the State of Indiana filed a lawsuit?