Local Car Dealer Says Federal Auto Bailout Won't Rescue California

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(Sacramento, CA)
Thursday, December 11, 2008
One Local car dealer doesn’t think the 14-billion dollar rescue plan for the nation’s “Big 3” automakers would help California right away.     
Rick Niello owns 11 auto dealerships in California.  Although he doesn’t sell cars made by GM, Ford and Chrysler…he says every car seller in the state is hopeful federal action on the car industry will give them a boost.  But he says it probably won’t happen soon… 
“It doesn’t matter if you sell Bentley’s or Kias or everything in between…everybody has been impacted…”
Niello sees the bailout as less desirable than allowing the automakers to file for federal bankruptcy protection… 
“The bailout would allow manufacturers to last a little longer…giving them time to get their act together…better than they have been…the reorganization I think really gives the manufacturers more flexibility…”
In the past year, 20 car dealerships in northern California have gone out of business during the nation’s economic tailspin.