View Poll Results: A Letter from a Dodge Dealer -- How Badly Screwed

Voters
14. You may not vote on this poll
  • Absolutely horrible -- unthinkable in the US

    7 50.00%
  • Really bad -- similar to extreme eminent domain seizures

    0 0%
  • Bad -- certainly unConstitutional

    1 7.14%
  • A tough break -- but possibly legal

    3 21.43%
  • An expected risk of a franchisee

    1 7.14%
  • It was probably written in his contract

    1 7.14%
  • Other -- specify

    1 7.14%
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Thread: A Letter from a Dodge Dealer

  1. #31
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    Re: A Letter from a Dodge Dealer

    Quote Originally Posted by Redress View Post

    The letter does not state, nor does the article, nor does anything I can find, suggest that the government told Chrysler to close down or transfer any dealership. If you can find proof that the government is behind this, I will apologize to you for doubting you, but I suspect I won't have to. This was a move made by Chrysler to try and cut costs, which is necessary because they are losing money. This is not the governments fault...well, not directly anyway, you could possibly argue that deregulation was a contributor to the financial meltdown which led in part to Chrysler's problems.
    .

    That's what I have been trying to figure out.


    Now I do feel bad for the guy but come on, he didn't see this coming? Have a little business sense (which after owning his own business for 40 years he should have a little) for crying out loud. I mean really- if you own a meat market and everyone has become vegetarians, are you seriously going to keep selling meat? There is just no good market right now for new cars, especially ones that are constantly in the news about going bankrupt. Does this guy not care or keep up to date with the product and business he is a part of or what?
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    Re: A Letter from a Dodge Dealer

    Obama's unelected, unaccountable Auto Industry Task Force is the entity that is behind these dealership closings. Chrysler downsizing and eliminating dealerships was part of the agreement that the troubled auto Co's made with the AITF in order to receive further funding from the taxpayer to "re-structure" the auto industry.. The power was first delegated by Congress to the Executive then subsequently to this bureaucracy from the President.


    Anyone who claims that the Government isn't behind these dealership closings is full of it. If you pay close enough attention, they are the very same people who insisted prior to the election that Obama wasn't a Socialist, & that a "Socialist" would do things like Nationalize the banking industry and turn the corporations over to the Unions.

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    Re: A Letter from a Dodge Dealer

    Quote Originally Posted by The silenced majority View Post
    Obama's unelected, unaccountable Auto Industry Task Force is the entity that is behind these dealership closings. Chrysler downsizing and eliminating dealerships was part of the agreement that the troubled auto Co's made with the AITF in order to receive further funding from the taxpayer to "re-structure" the auto industry.. The power was first delegated by Congress to the Executive then subsequently to this bureaucracy from the President.


    Anyone who claims that the Government isn't behind these dealership closings is full of it. If you pay close enough attention, they are the very same people who insisted prior to the election that Obama wasn't a Socialist, & that a "Socialist" would do things like Nationalize the banking industry and turn the corporations over to the Unions.
    Source please.

  4. #34
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    Re: A Letter from a Dodge Dealer

    This sounds like the dealership didn't live up (in some way) to the franchise agreement.

    I used to do books for a guy who owned a few Pizza Time franchises. He had to jump through all kinds of hoops maintain the franchise.

    How is this Obama's fault?



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    Re: A Letter from a Dodge Dealer


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    Re: A Letter from a Dodge Dealer

    Two quotes from the source you linked:

    The pair pose a number of questions that the House and Senate should get answered before the the branch of government that holds the power of the purse -- and thus the authority to authorize bailouts of American industries--authorizes the administration to pour billions into the accounts of corporations that are closing modernized factories, laying off skilled workers and shuttering car dealerships.
    Do GM and Chrysler really need to close as many dealerships as have been announced? Is the logic of closing dealers to enable the remaining dealers to charge higher prices (See, for example, Peter Whoriskey and Kendra Marr, "Chrysler Pulls Out of Hundreds of Franchises," Washington Post, May 15, 2009); and if so, why is the government facilitating such a move? Is it reasonable and fair for GM to impose liability for disposing of unsold cars on dealers with which it severs relations, as Chrysler has apparently done?
    Bolding is mine, not from the article.

    I think these two quotes show pretty clearly that the most the government can be accused of here is "facilitating" the closing of dealerships. It seems to lay out the decision to close dealerships, and which one, and how as being with the automakers, not the government.

    Edited to add: you linked a second, reading it now.
    Last edited by Redress; 05-22-09 at 09:27 PM.

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    Re: A Letter from a Dodge Dealer

    From the second link:

    Tens of billions of taxpayer dollars are being poured into Chrysler and General Motors, ostensibly to "save" the US auto industry. Yet, the companies have acknowledged that they plan to use the money to shutter factories, lay-off tens of thousands of factory workers and dramatically downsize dealership networks -- at the cost of as many as 100,000 additional jobs.
    Again, any problem here is giving money to businesses that are going to shut down factories and dealerships. No where does either article say that the government has either called for, or required any dealership closings.

    I read this as the government is requiring Chrysler and GM to cut costs, and some are not happy with how they are doing it.

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    Re: A Letter from a Dodge Dealer

    Quote Originally Posted by Redress View Post
    think these two quotes show pretty clearly that the most the government can be accused of here is "facilitating" the closing of dealerships. It seems to lay out the decision to close dealerships, and which one, and how as being with the automakers, not the government.
    That really is still unclear as there hasn't been any real information released as to what the criteria was that Chrysler used to determine which dealerships to close. Although many of the closings are smaller dealerships, there is no discernible pattern to explain why Chrysler removed their franchises where they did.

    Here:
    Mr. Steve Rattner
    Auto Task Force
    U.S. Department of the Treasury
    1500 Pennsylvania Avenue, NW
    Washington, D.C. 20220

    Dear Mr. Rattner:

    We are contacting you on behalf of our constituents who either own or are employed by the Chrysler and General Motors (GM) auto dealerships recently notified that their contracts with these companies will soon be terminated. Due to questions these constituents have raised, we have several concerns about the decisions that were made as part of the auto restructuring efforts you currently oversee. While we understand that your office was not directly involved in deciding which or how many dealers should be closed, you do have direct responsibility for reviewing, approving, and overseeing the implementation of the restructuring plans submitted by Chrysler and GM. To that end, we seek your help in getting answers to our constituents' questions.

    Concerns have been raised by many of our constituents that Chrysler and GM did not provide dealers with a complete understanding as to why each of their dealer contracts were being terminated. They have been given virtually no understanding of the criteria used to select their dealership as one for termination, nor an understanding of how such criteria will lead to the long-term viability of the companies. Many Missouri dealers are asking us why certain profitable dealers, costing the auto companies nothing, were selected for closure. From this perspective it appears an arbitrary standard may have been used to make these decisions. We are seeking your help in getting the transparency and answers these dealers are owed.

    Specifically, we are asking that you and your team provide to us information regarding the criteria used to decide how many and which dealers were eliminated; the role that your office played in the development of that criteria; how those criteria will help the auto companies reach long-term viability; how the Task Force is ensuring dealers are given the proper time, ability and criteria to appeal the decision for closure; and what help, if any, the Auto Task Force will be providing to these dealers in their time of transition.
    We understand that these were not easy decisions for the companies to make and we firmly believe that it is critical to our nationís economy and the long-term viability of our domestic auto industry. However, these dealers deserve a little more than just a pink slip in the mail. Many of them have been loyal to GM and Chrysler for over thirty years. They are entrenched in their local communities, providing good paying jobs and quality vehicles. Now that this all may be slipping away, the least they deserve is a full explanation of their termination.

    On a related issue, we have also heard from constituents who are individual GM bondholders. They are concerned that they have been left out of the restructuring efforts. These constituents are not institutional investors, hedge funds, or private equity firms; they are individual investors who have in some cases invested significant portions of their savings in GM bonds. We understand there are tens of thousands of these individual GM bondholders across the nation. While all of the stakeholders will be required to make some sacrifice if GM is to be restructured successfully, we are concerned that these individual investors are not participating in the Administrationís efforts to facilitate that objective. We request you provide us with a description of the steps that the Task Force will take to ensure that these individuals are represented in the restructuring efforts for GM.

    We appreciate your immediate attention to these matters and look forward to your response.

    Sincerely,

    Claire McCaskill Christopher Bond
    U.S. Senator
    U.S. Senator
    .: United States Senator Kit Bond :: Press Room :.

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    Re: A Letter from a Dodge Dealer

    Quote Originally Posted by Redress View Post
    From the second link:
    Again, any problem here is giving money to businesses that are going to shut down factories and dealerships.
    I have a problem with this neo-bankruptcy where the Government (those who spend your tax money) can set the terms as to what kind of products a Company can make, how much of the product they can make, where they can make it, who can make it, etc...
    Seeing as how the Big Auto Unions where instrumental in electing Obama "old bankruptcy" where all binding, production-killing union contracts are scrapped and true re-structuring occurs, was from the jump - totally out of the question.


    No where does either article say that the government has either called for, or required any dealership closings.
    This re-structuring process is different from Chrysler's 1979 bailout. Back then Congress, not a panel appointed by the President oversaw the whole thing.

    I read this as the government is requiring Chrysler and GM to cut costs, and some are not happy with how they are doing it.
    It is still pretty unclear as it if the Government set the terms (criteria) for the dealership closings themselves, had a role in it, or had no role in it at all.

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