GM and Chrysler are in talks with lawmakers to reach an agreement regarding the proposed closing of thousands of dealerships. This is obviously in an effort to avoid the proposed legislation that would put their plans on hot water. In case I didn’t go into this on Monday (which I don’t remember doing so) this legislation would take these close to 2,000 dealerships, and restore them to the status they had before GM or Chrysler filed for bankruptcy. Yesterday the Obama administration made it clear that they would be opposed to such legislation, even though the bill was sure to pass in the House.

The National Automobile Dealers Association has been showing up in full force to support this legislation. Their efforts seem to be working as their congressional support has been growing quickly all week. It is still unclear whether or not the measure will pass through the senate as it has only half of the votes needed to pass. We’ll see how this unfolds.

Curious about how the Cash for Guzzlers program (the one that I discussed on a couple of occasions) was panning out? According to a growing consensus, not well. The argument states that it is far to early in our economic recovery to count on a plan like this to work. The problem stated: people may own a gas guzzler that happens to be paid off, the incentive would not in any way be worth the accrued debt of buying a new car. Sounds like a pretty reasonable argument to me, but will this ever reverse the decision to implement this program? Only time will tell.