lifestyle auto car

The U.S. House of Representatives approved a measure that tries to help automobile dealerships hit by the bankruptcies of Chrysler and General Motors.

The House voted 219-208 for a $24.2 billion spending bill for the fiscal year starting Oct. 1. The legislation includes controversial provisions that try to restore the economic rights of those auto dealerships that have been closed or are facing such a prospect as a result of the GM and Chrysler bankruptcies.

The bill’s future in the Senate is uncertain, and the Obama administration strongly opposes it because the cuts were deemed necessary as part of the government-financed restructuring of GM and Chrysler.

Chrysler shut down 789 dealerships during its six-week bankruptcy, which ended June 10. Before it filed for court protection on June 1, GM told about 1,300 dealerships that their franchise agreements wouldn’t be renewed when they expire in October 2010.

The legislation would return dealerships to their previous status. If automakers want to continue with the cuts, they’d have to go through state courts.

Chrysler, in a statement before today’s vote, said its bankruptcy accelerated a dealer reduction that began more than a decade ago.

"If Congress reverses this process, it flies in the face of a U.S. vehicle market that has declined 40 percent since 2007," Vice President Peter Grady said in a statement on the company's blog.

"Indeed, the U.S. dealer network was built to serve a market that once sold 16 million vehicles a year. Those days are gone."

U.S. auto sales averaged 16.4 million annually this decade through last year. This year’s sales have been running at an annual rate below 10 million.