Shoddy Reporting Concerning Closed Chrysler Dealers:What the TARP Inspector General Report Does NOT Say.

By Itooktheredpill

Stories at both HotAir.com and MichelleMalkin.com are missing important parts of the picture, and could be unwittingly hurting the dealers.

Nowhere in the SIGTARP Report does it say that the Government “forced” (as Malkin put it) Chrysler to reduce its dealership network.

It’s important for both Ed Morrissey and Michelle Malkin to read and respond to what attorney Leo Donofrio has to say

The TARP Inspector General’s office, SIGTARP, recently released a report entitled, “Factors Effecting The Decision of General Motors and Chrysler To Reduce Their Dealership Networks“. This report set off a firestorm of shoddy reporting, which, if left unchecked, will confuse those familiar with the Chrysler Dealers’ pending litigation on appeal in federal district court. This blog posting has been designed to educate the public as to the truth of the SIGTARP Report.

My assertion of shoddy reporting is levelled specifically at The New York Times, the AP, and unfortunately also at Michelle Malkin who has been a staunch supporter of the dealers throughout. Regardless, her recent discussion of the SIGTARP report is fundamentally flawed and damaging to the case we have brought in our federal appeal to the Southern District of New York (where a Court ordered oral argument is scheduled for July 28, 2010, a fact the media doesn’t seem remotely interested in mentioning).

Nowhere in the SIGTARP Report does it say that the Government “forced” (as Malkin put it) Chrysler to reduce its dealership network. As to GM, yes the Government did specifically urge dealership reductions, but as to Chrysler the Government did not.  The SIGTARP Report is very clear on this point.

The GM Bankruptcy was a vastly different beast than the Chrysler Bankruptcy.  And the SIGTARP Report stresses this point in multiple citations throughout the 45 page document.

The “contrast” between GM and Chrysler was entirely skipped over by Malkin and the rest of the media reports.

WHY THE CONTRAST IS SO IMPORTANT TO FORMER CHRYSLER DEALERS…

Please follow this link to Leo’s post and read it.

UPDATE:

Mega-Kudos to Ed Morrissey, who updated his HotAir post as follows:

Update: WTPOTUS notes that the government didn’t force Chrysler to close dealerships, according to counsel for some of the dealers:

Nowhere in the SIGTARP Report does it say that the Government “forced” (as Malkin put it) Chrysler to reduce its dealership network. As to GM, yes the Government did specifically urge dealership reductions, but as to Chrysler the Government did not.  The SIGTARP Report is very clear on this point.

I’ve amended the first paragraph to remove Chrysler.  The rest of the post dealt mainly with GM anyway.

Thank you very much for that update, “Captain”.  This is an important distiction, especially as the Chrysler dealers have their day in court this coming Wednesday (which I hope you will recap in a later post).

…82 rejected Chrysler dealers will have their day in court on this very issue before the Honorable Judge Alvin K. Hellerstein – who ordered oral argument sua sponte – on July 28, 2010 at 12:30 PM in the Southern District of New York, 500 Pearl Street, New York, N.Y.

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11 responses to “Shoddy Reporting Concerning Closed Chrysler Dealers:What the TARP Inspector General Report Does NOT Say.

  1. Red Pill, thanks for linking that and for reminding us to catch up with Leo. I’ve been reading about this report and meaning to look over there to see what Leo has to say about it. Thanks for the update. Let’s hope the dealers find some justice this week.

  2. If Donofrio wins this appeal, will he then file that Quo Warranto action at the DC District Court?

  3. There should be news about this tomorrow! Good luck to Leo, Stephen and the dealers! May the Capitalists win over these Marxists/communists who have taken over our government!

    “Eighty two (82) rejected Chrysler dealers will have their day in court on this very issue before the Honorable Judge Alvin K. Hellerstein – who ordered oral argument sua sponte – on July 28, 2010 at 12:30 PM in the Southern District of New York, 500 Pearl Street, New York, N.Y.”

  4. Oral Argument Moved to September 8, 2010
    In Chrysler Dealers’ Appeal

    Posted in Uncategorized on July 29, 2010 by naturalborncitizen

    The Court, sua sponte, moved the oral argument to September 8, 2010.

    Steve and I were ready to argue the case, but now we have five extra weeks to prepare and we intend to put that time to good use. In all things, preparation is the best offense. So it’s back to the books.

    Leo Donofrio, Esq. for the law firm of Pidgeon & Donofrio GP

  5. I hope that the judge didn’t delay the oral argument at the request of the white house….

    Gibbs Takes on Rush Limbaugh
    July 29, 2010, 4:40 PM ET
    By Elizabeth Williamson

    At a briefing today to discuss the administration’s efforts to rescue the auto industry, White House press secretary Robert Gibbs took on conservative radio host Rush Limbaugh—and every other critic “sitting in the cheap seats” –for criticizing the rescue of General Motors and Chrysler as a “government takeover” that smacks of socialism.

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