by Caitlin Kenney

The House of Representatives is considering a bill to reverse the closings of Chrysler dealerships and block GM from closing over 2,000 more. The bill, known as The Automobile Dealer Economic Rights Restoration Act of 2009, has already cleared the House Appropriations Committee. From Bloomberg:

"I don't think Chrysler or GM has been able to demonstrate there is savings associated with fewer dealerships, since the dealers themselves bear the cost of operating their dealerships with little help from the manufacturers," said Representative Steve LaTourette, an Ohio Republican who sponsored the amendment. "It's the most un-American thing for the government to help force you out of business."

GM spokesman Greg Martin said the amendment would "nullify" bankruptcy court-approved plans to pare the company's dealer network and "put our long-term viability at risk." He said GM intends to close about 2400 dealerships in October 2010, leaving the company with between 3500 and 3800 outlets.

General Motors is expected to exit from bankruptcy proceedings as early as tomorrow. The entire House will likely take up the bill next week. It will then move on to the Senate.