Is this the next scandal shoe to drop on Obama?

GOP Congressman is asking if Obama's treasury department targeted GOP dealers during GM bankruptcy and bailout...

Two Congressmen are asking the Treasury Department if it inappropriately scrutinized conservative-owned businesses the same way it targeted Tea Party groups filing for tax-exempt status.

Republicans Mike Kelly (PA-03) and Jim Renacci (OH-16) circulated a letter Thursday requesting Treasury Secretary Jack Lew to release documents detailing the process and methodology the Automotive Task Force used to shut down General Motors dealerships in 2009 during the automotive industry crisis.

Renacci's Northeast Ohio Chevrolet dealership was closed in 2010 after losing a battle with General Motors. Congress loaned General Motors $50 billion in 2009 after GM declared bankruptcy, which resulted in the federal government owning a majority share of the company. Roughly 2000 dealerships received "wind-down" agreements, and while hundreds were able to survive an exhaustive arbitration process, Renacci-Doraty Chevrolet in Wadsworth did not. Renacci, then a Congressional candidate challenging incumbent John Boccieri, placed the blame squarely on President Obama.

GM Asks Dealers They Shafted to Reopen

In a stunning reversal, GM has asked 661 dealers forced to close as part of their bankruptcy to reopen. GM is concerned about their dwindling market share. Many thought Obama's former auto czar Steven Rattner was behind the incredibly stupid move to close 1,100 dealerships as part of the bankruptcy.

Bloomberg reported:

Democrats Discover Dealergate

Yesterday, House Democrats sent a letter to President Obama asking for a "compelling justification" for the closing of Chrysler and GM dealerships. They finally realized some of these dealerships are in their districts and the methodology used to select which dealerships to close smells "very fishy." From Politico:

We are writing to express our concerns about General Motors' and Chrysler's decision to close profitable automobile dealerships across the country, and urge you to ask GM and Chrysler to delay final action on proposed closures pending further review of the decision to consolidate dealerships and the process by which Chrysler and GM selected the dealerships to close.

Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. Furthermore, we believe car dealers will be key players in any effort to revive the American auto industry.

Congressman Ted Poe Accuses Obama Auto Team of Closing GOP Dealerships (video)

Only GM Dealers That Donated To Republicans Were Shut Down! Congressman Ted Poe (video)


The ratio of donations for dealers that were shuttered was 42 to 1, GOP to Democrat.


Additionally, WND analyzes the closings:

But WND reviewed the list of 789 closing franchises and databases of political donors and found that of dealership majority owners making contributions in the November 2008 election, less than 10 percent gifted to Democrats while 90 percent gave substantial sums to Republican candidates.

The listed franchise owners
contributed at least $450,000 to Republican presidential candidates and the GOP, while only $7,970 was donated to Sen. Hillary Clinton's campaign and $2,200 was given to Sen. John Edwards' campaign.

Obama received a combined total of only $450 in donations – $250 from dealer Jane Baldock in Wenatchee, Wash., and $200 from Waco, Texas, dealer Jeffrey Hunter.

Many of the majority owners who donated to Republican campaigns last year also contributed additional thousands to George W. Bush's presidential campaign in 2004 and to help elect GOP representatives.

Story on partisan dealership closings grows

Many are claiming this story does not have merit because most dealers tend to be Republican. This seems plausible at first glance because most dealership owners are older, upper middle class businessmen. A first look at dealerships by Gateway Pundit indicates owners donate more to the GOP by a ratio of 76% to 24%. That does not explain why almost no Democratic supporter had their dealership closed. Many actually gained dealerships or had their competition eliminated.
Here are the story basics from Examiner.com:

Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans. What started earlier this week as mainly a rumbling on the Right side of the Blogosphere has gathered some steam today with revelations that among the dealers being shut down are a GOP congressman and closing of competitors to a dealership chain partly owned by former Clinton White House chief of staff Mack McLarty.The basic issue raised here is this: How do we account for the fact millions of dollars were contributed to GOP candidates by Chrysler who are being closed by the government, but only one has been found so far that is being closed that contributed to the Obama campaign in 2008?

Florida Rep. Vern Buchanan learned from a House colleague that his Venice, Florida, dealership is on the hit list. Buchanan also has a Nissan franchise paired with the Chrysler facility in Venice.
"It's an outrage. It's not about me. I'm going to be fine," said Buchanan, the dealership's majority owner. "You're talking over 100,000 jobs. We're supposed to be in the business of creating jobs, not killing jobs," Buchanan told News 10, a local Florida television station.

Buchanan, who succeeded former Rep. Katharine Harris in 2006, reportedly learned of his dealership's termination from Rep.Candace Miller, R-MI. Buchanan owns a total of 23 dealerships in Florida and North Carolina.

Also fueling the controversy is the fact the RLJ-McCarty-Landers chain of Arkansas and Missouri dealerships aren't being closed, but many of their local competitors are being eliminated. Go here for a detailed look at this situation. McClarty is the former Clinton senior aide. The "J" is Robert Johnson, founder of the Black Entertainment Television, a heavy Democratic contributor.


A lawyer representing a group of Chrysler dealers who are on the hit list deposed senior Chrysler executives and later told Reuters that he believes the closings have been forced on the company by the White House.

"It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers. It really wasn't Chrysler's decision. They are under enormous pressure from the President's automotive task force," said attorney Leonard Bellavia.

Adding to this story is the revelation Obama's Car Czar, Steven Rattner, is married to Maureen White, the former National Finance Chair for the Democratic Party.