The American International Automobile Dealers Association (AIADA), which represents America's 11,000 international nameplate car franchises, said the three associations sent a letter to Obama asking him "to institute policy initiatives to stave off further job loss in auto retailing, and lay the foundation for a broader economic recovery."
"The two-pronged plan includes revitalizing the asset-backed securities market for wholesale and retail auto loans and expanding the Small Business Administration loan guarantee program to provide working capital for auto dealers," the association said in a statement.
U.S. auto sales dropped more than 41% in February, as recession drove people away from big purchases and new debt despite aggressive discounts from automakers.
U.S. automakers General Motors Corp (GM, Fortune 500) and Chrysler LLC, which is controlled by private equity firm Cerberus Capital Management LP, have received emergency funding from the U.S. government to help them restructure.
"The auto retail industry in the United States is suffering greatly, and tens of thousands of jobs are being lost with each passing month of lower and lower car sales," said AIADA Chairman Russ Darrow. "The retail sector of our economy drives the manufacturing sector."
"In order to achieve a comprehensive economic recovery, Congress must focus on retail, and empowering Americans to buy again," he added.
Obama pushes for stimulus plan OK
Tenn. economy hasn’t hit bottom yet, UT reports
GM to end jobs bank Monday
