Progress Illinois

Like his fellow Illinois Republicans, Rep. Aaron Schock doesn't agree with the decisions made by the Obama administration's auto task force. The Peoria congressman is particularly angry with Chrysler's decision to close almost 800 dealerships nationwide, including two in his hometown. According to Schock, the government is closing these shops prematurely and without taking into account consumer choice. More from the Peoria Journal-Star:

"This happened not because they failed, not because of market pressure, but because of a third party, the government, which intervened," the congressman said, saying the government shouldn't be in the business of dictating business decisions to an entire industry.

We've gone over this before: the auto companies needed structural reform, cultural reform, and huge infusions of capital to survive. That wasn't going to happen without the government stepping in. And if taxpayers are forking over their hard-earned dollars to these companies, our representatives in government should have a direct say in how that money is being spent.

To make sure the automaker remained operational, the Obama administration convened a crack staff of insiders and outsiders to guide Chrysler through the restructuring. According to the New York Times editorial board, there is reason to believe that they are actually doing a pretty solid job:

Chrysler’s bankruptcy has been so smooth and fast because the government held its hand all the way — including providing financing to keep it running through bankruptcy and cover its warranties so consumers would keep buying.

What's even sillier is Schock's notion that the auto task force isn't considering the "marketplace" in its decision to consolidate dealerships. In fact, they are doing just that, mimicking the success of companies like Toyota that sell a higher volume of cars at a smaller number of outlets. Downsizing -- and avoiding the "price wars" in which low volume dealerships often get bogged down -- could save the company crucial cash. Bloomberg quotes a Toyota spokesperson explaining the philosophy:

“The strategy at Toyota is pretty simple: keep the dealer count rational, don’t locate them too close to each other and maximize their units per outlet,” said Mike Michels, a company spokesman in Torrance, California. “A profitable dealer can invest in their dealership and personnel.”

Currently, Chrysler averages 405 annual sales at each of their new auto stores. Toyota triples that. That's a major discrepancy, and one Chrysler is hoping to minimize. It's certainly going to be hard for those familes and communities directly affected by the closures. And there should be some additional transparency about why certain branches were axed. But it's all part of a broader plan to ensure the domestic auto industry stays viable. Without it, we can expect to feel a lot more pain.