Local auto dealers see upside of Obama plan

Local car dealers said they felt positive about business in light of negotiations between the White House and two American car companies.

President Barack Obama said Monday that General Motors and Chrysler needed better restructuring plans before they could get more federal bailout funds. The government might have to manage the bankruptcy of the two companies " if needed " to keep them alive, Obama said.

Obama's speech laid out plans that car dealers in Carson City said would help them.

"We're optimistic something good is going to come out of this," said Steve Christian, general manager of Carson Dodge Chrysler.

The president promised the federal government will buy new federal vehicles as quickly as possible, back warrantees if either GM or Chrysler goes into bankruptcy and pay for GM's operating expenses for 60 days and Chrysler's for 30 days.

GM's brands include Chevrolet, GMC and Buick. Chrysler's brands include Chrysler, Dodge and Jeep.

Michael Hohl, who has three dealerships and sells several GM brands, said he knows his business is secure despite talk of GM's possible bankruptcy.

He pointed out the president's commitment to keep GM alive, and the company's size and history.

"GM will be around for a long time," he said. "I just don't know what structure it will be in."

Jeff Woodward, owner of Carson Jeep Nissan, said the government's promise to back up warrantees has to make car dealers optimistic.

He said he is "very positive" about the Jeep brand.

"Jeep is an acknowledged asset," he said. "Whatever happens, it will be viable " if it is owned by Chrysler or someone else."

- Contact reporter Dave Frank at dfrank@nevadaappeal.com or 881-1212. The Associated Press contributed to this article.