Free Republic

Several weeks ago President Obama pilloried holders of Chrysler debt who refused to take a deal for less than they had expected as secured creditors of the company, famously dismissing them as "a small group of speculators." Bloomberg reported that he also questioned their motives, saying that, "A group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout." Among other things, Obama tried to cast the conflict as a moral issue, in effect suggesting that bondholders were greedy and threatening the jobs of hardworking Americans with unfair demands and a lack...

Jim Press, Chrysler's charismatic deputy chief executive, went to Capitol Hill last week and spoke solemnly about the "very difficult decision" of terminating 789 of the automaker's dealers across the country. He assured members of a House committee that the company's executives had "taken every step to make this a soft landing for the dealers involved" and promised to help them as much as possible. *snip* "You have two choices," Press told the group, according to reports. "You can either help us or burn us all down." Many dealers would long remember the warning that followed to those who refused...

HOBART, Ind. – At the end of the 81-year marriage, the Isaksons said goodbye by turning off the lights. The partnership was over. The Chrysler sign went dark. It was an unceremonious finale to a four-generation bond between one family and one company, but it was not a surprise. Rob Isakson had known for weeks his dealership was on a Chrysler hit list — the cuts were part of the troubled automaker's survival strategy...

"My grandfather paid for Carlisle Chevrolet from his labors. My father paid my grandmother for Carlisle Chevrolet through his efforts. It took me nearly 20 years to pay my parents for Carlisle Chevrolet. It took GM and Chrysler a mere 24 hours to take Carlisle Chevrolet from me."

With the government-imposed terms of bankruptcy for GM and Chrysler, Barack Obama has violated the 5th Amendment to the U.S. Constitution--a serious impeachable offense. Bond holders and investors were deprived of due process of law and were not justly compensated for their investment. Instead, the UAW was given .68 cents on the dollar, although they never invested a dime in the companies, and the investors only received .28 cents on the dollar for their multi-millions they pumped into the 2 automakers.

Pension funds opposed to Chrysler's sale to Fiat have asked the US Supreme Court to block the deal immediately. Three Indiana state pension and construction funds filed papers at the court on Sunday calling for the sale to be halted so they can pursue an appeal. It comes after a US appeals court approved Chrysler's sale to a group led by Fiat, a union-aligned trust and the US and Canadian governments. Chrysler entered bankruptcy protection in April after falling vehicle sales. US carmakers have suffered from a massive slump in sales during the recession. The US government has backed its...

This is nothing short of Americans asking the Judiciary Branch to step in and exercise its check and balance powers to stop an out-of-control Executive Branch. Our Republic is held together by such power, and in this instance, the Supreme Court is the last bulwark against an authoritarian president nationalizing a private company and extinguishing Constitutionally protected contract and property rights to reach his goal of giving the company to his political allies.

From Harry Reid to Obama: Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. . . .

House Majority Leader Steny H. Hoyer and Reps. Chris Van Hollen and Daniel Maffei have circulated this letter today ... ... to Obama expressing “growing concern” with the closures of GM and Chrysler dealerships across the country. The lawmakers say they’re asking for a “compelling justification as to how closing healthy dealerships will make the automakers more financially sound. The lawmakers are asking for lawmakers to sign this letter by 5p.m. today. Full letter below: Dear President Obama: We are writing to express our concerns about General Motors’ and Chrysler’s decision to close profitable automobile dealerships across the country, and...

The Obama administration rushed an alliance between Chrysler and Fiat despite Chrysler's worries about Fiat's financial health and its willingness to share technology, according to internal company emails. The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. The documents provide a glimpse at the tense debates that shaped Chrysler's final days as it raced to find a suitor. For more information and to read some of the email exchanges:

Since we last checked in, here are the latest developments in the rope line of strange occurrences Doug Ross has dubbed Dealergate (Some bloggers prefer Mopargate, but many non-motorheads won't get it. Dealergate it is). In another of the many pesky coincidences to be found in this story, car czar Steven Rattner, the real head of President Obama's auto task force, is married to Maureen White, a former fundraising chair for the Democratic National Committee. Need dealer donor data? No problem... Chelsea Schilling examined the political donations made by dealers on Chrysler's closing list, data for whom are now in...

DETROIT - A group of Chrysler LLC's dissident lenders disbanded, representatives said on Friday, removing the last legal hurdle to the automaker's quest to complete a merger with Italy's Fiat SpA with U.S. government backing.

Politics: The government's bailout of Chrysler was key to saving a national icon too important to be lost. Or so we were told. But it's looking more like a way to punish political opponents.Earlier this month, Chrysler announced it was seeking permission from bankruptcy court to kill franchise agreements with 789 of its 3,181 dealers to save costs. Dealers, many of whom ran profitable businesses, told the media that the news was devastating. Aside from the loss of a business, many of these franchisees may have something else in common: It looks like all the dealers who are losing their...

Michelle Malkin was on Fox and Friends this morning discussing the Chrysler dealership closings and credited Joey Smith (Freeper smith5460) for his work in examining possible political reasons for the closings. Freeper smith5460 has created a blog to update us on his research: http://chryslerdealershipshutdown.blogspot.com His work was first picked up by Doug Ross and then RedState. It then went to Michelle Malkin and is now on Newsmax, and the Wall Street Journal among many many others.

There appears to be a side to the Chrysler bankruptcy that has the look of an ugly partisanship not seen in this town since Tricky Dick was in the White House composing his enemies list and checking it twice every night while watching the evening TV newscast. Bloggers on the Right side of the Blogosphere are up in arms over data suggesting that President Barack Obama’s White House auto industry potentates are targeting for closure Chrysler dealers with records of contributing either to Republicans like Sen. John McCain or to other Democrats in the 2008 presidential primary. Posts at RedState,...

More Hope and Change... ** Earlier it was reported that the Obama Administration may have targeted GOP donors in deciding which Chrysler dealerships would have to close their doors. ** Last night it was discovered that a Big Dem Donor Group was allowed to keep all 6 Chrysler dealerships open.... And, their local competitors were eliminated by Obama's task force. ** The closings also tend to be in "Red" Counties where Obama lost. ** Even Rep. Vern Buchanan (R-Fla) lost his Chrysler dealership in Florida and found out from a colleague on the House floor. Now this... Doug Ross says...

Increasing numbers of Chrysler dealers are disputing the bankrupt automaker’s claim that it selected dealerships for closure on purely economic grounds, and they have filed a suit against the automaker in U.S. bankruptcy court. "My business is being stolen from me under the guise of the bankruptcy laws [and] given to another dealer down the street," Jim Anderer, owner of Island Jeep in Lindenhurst, N.Y., told Reuters. Like many of the 789 Chrysler dealerships slated for closure, Anderer claims his retail outlet was profitable. Many of the closed dealers were also major donors to Republican candidates and political action committees,......

Are we looking at the biggest political scandal since Watergate? Big Dem Donor Group allowed to keep all 6 Chrysler dealerships open.... Local competitors eliminated by Obama's task force!! Earlier it was reported that the Obama Administration may have targeted GOP donors in deciding which Chrysler dealerships would have to close their doors. Now there's this... RLJ-McLarty-Landers is owned by three men. One was the former Chief of Staff for President Clinton. One is the founder of Black Entertainment Television and a huge Obama supporter. All 6 of their Chrysler dealerships will remain open. And, get this... Their local competitors...

As more than 2,000 fuming Chrysler dealers rallied outside the Jacob Javits Center Tuesday to protest the closing of 789 Chrysler franchises and the company's planned sale to Fiat, a lawyer for some of the dealers said it appears Chrysler executives aren't happy with the proposals, either. Chrysler intends to sell the bulk of its assets to a group led by Italy's Fiat Group as part of its restructuring to emerge from Chapter 11 bankruptcy protection. The automaker says it will cut costs by ending some dealer-franchise agreements. A hearing on the motion to terminate the franchise agreements will be...

One of the arguments against big government and government interference in the economy is government’s unique position to grant political favors to political allies, or to punish one’s political enemies. One of the many reasons Conservatives believe in limited government is to reduce the potential for corruption, political favors, and political punishment from the government. A story began to unfold yesterday that illustrates this concept perfectly. As part of the bankruptcy proceedings, Chrysler announced the closing of 25% of its dealerships. At the time, Chrysler announced that it was eliminating dealerships based on location, sales volume, and other business factors....

I wrote yesterday of the possibility that Chrysler dealers who had been given the ax were disproportionately Republican - many of them large contributors to GOP candidates and the RNC. Now comes more evidence that these dealer closings were politically motivated. Through Reliapundit at Astute Bloggers, we learn that the lawyer for the dealers being torpedoed believes that the closings were ordered not by Chrysler, but by the White House: (via Reuters ) A lawyer for Chrysler dealers facing closure as part of the automaker's bankruptcy reorganization said on Tuesday he believes Chrysler executives do not support a plan to...

The use of a sham sale of the sort the New Dealers thought they had forever eliminated will cause mischief in future bankruptcy cases. The Obama administration has closely patterned itself on the famous opening year of President Franklin D. Roosevelt’s New Deal. But the plans the administration has rolled out for Chrysler and is now cheering on in the bankruptcy court would make a true New Dealer turn over in his grave. In the early 20th century, large troubled corporations did not file for Chapter 11 like they do today. They used a process known as “equity receivership,” which...

DETROIT (AdAge.com) -- Chrysler wanted to spend $134 million in advertising over the nine weeks it's expected to be in bankruptcy -- the U.S. Treasury's auto-industry task force gave it half that. So if GM, which is wrestling with the possibility of a Chapter 11 filing itself, is wondering how much influence the task force will have over marketing, the answer is: plenty. However, transcripts from the U.S. Bankruptcy Court for Southern District of New York, where the Chrysler case is being heard, proved for the first time that the task force at least understands that advertising is a necessary...

WHIO Local News Chrysler and Fiat to "Fire" Dealers Under New Bankruptcy Plan DETROIT, Mich. - The United States' third-largest auto-maker announced Thursday that it will be telling some of its dealerships the same thing Donald Trump tells his apprentices: "You're fired." American auto manufacturer Chrysler says it will cut 800 of its 3,200 dealerships and renegotiate deals with the remaining 2,400 as part of its bankruptcy plan. The names of the "fired" dealerships are expected to be released on Thursday. Pierre Bergeron is an attorney in the Cincinnati office of Squires Sanders, a law firm that is seeking to...

Car dealers descended on Washington Wednesday, upset about plans to close 3,400 General Motors and Chrysler dealerships as part of the Obama administration auto bailouts. Dealers said it's a bad idea that will cost jobs, hurt sales, and change some communities forever. Almost sure to close is the Arnold dealership that's sold Pontiacs and GMC trucks since 1926. "It'll impact the community," Bob Arnold with Arnold Pontiac - GM said. "There's no question about that." Houston, Pennsylvania would lose its last new car dealership and Bob Arnold's employees would lose their jobs. Car dealers came to Capitol Hill Wednesday to...

Chrysler LLC notified all U.S. dealers on Thursday about its plans to eliminate 25 percent of its retail showrooms and is seeking permission from a U.S. bankruptcy court to terminate franchise agreements. The automaker sought approval in a bankruptcy court filing to terminate franchise agreements with 789 of 3,181 dealerships as of June 9. Chrysler, which filed for bankruptcy on April 30, and larger rival General Motors Corp have faced pressure to cut struggling dealerships to bring their large sales networks in line with those run by more successful automakers led by Toyota Motor Corp. Chrysler said 25 percent of...

NEW YORK (Reuters) - Some auto dealers that Chrysler LLC plans to close are beginning a challenge to the automaker's plans to quickly sell itself in bankruptcy. The group, which calls itself the "Committee of Chrysler Affected Dealers," filed papers on Tuesday asking the bankruptcy court to delay hearings that would approve the sale and allow Chrysler to reject almost 800 of its dealership franchise agreements, or about 25 percent of its overall dealer network. The committee, which said it represents nearly 300 dealers in 45 states, said in a statement it needed more time from the court to investigate...

Why shutting so many auto dealers will hurt GM and Chrysler. Detroit carmakers clearly have too many dealers. But that's not why Chrysler is in bankruptcy and General Motors might be. The number of dealers doesn't explain why Chrysler sales this year are 46% behind last year's or why GM sales are down 45%. The idea behind the closings--Chrysler is killing nearly 800 dealers and General Motors (GM) at least 1,100--is that fewer dealers selling more cars each is better than more dealers selling fewer cars each. This is because the fewer, bigger dealers can become stronger and more competitive....

The calls from Chrysler officials were coming nearly every day, sometimes several times a day, right through the final weeks before the company filed for bankruptcy. And the message, said Robert Archer, who runs three Chrysler dealerships in the Houston area, was simple: Take more cars. “They tell me, ‘The only way that we can survive is if you order cars, and Fiat and the government see money coming in,’ ” Mr. Archer said. He acquiesced, he said, thinking he was doing his part to save the company. “I’m a team player and I don’t want them to go out...

Excerpted From Doug Ross at Director Blue: A tipster alerted me to an interesting assertion. A cursory review by that person showed that many of the Chrysler dealers on the closing list were heavy Republican donors. To quickly review the situation, I took all dealer owners whose names appeared more than once in the list. And, of those who contributed to political campaigns, every single one had donated almost exclusively to GOP candidates. While this isn’t an exhaustive review, it does have some ominous implications if it can be verified. However, I also found additional research online at Scribd (author...

A tipster alerted me to an interesting assertion. A cursory review by that person showed that many of the Chrysler dealers on the closing list were heavy Republican donors. To quickly review the situation, I took all dealer owners whose names appeared more than once in the list. And, of those who contributed to political campaigns, every single one had donated almost exclusively to GOP candidates. While this isn't an exhaustive review, it does have some ominous implications if it can be verified. However, I also found additional research online at Scribd (author unknown), which also appears to point to...

My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business. We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part...

There have been several interesting and informative blog posts published recently on the Chrysler dealership closure “hit list.” Posts by Joey Smith, Doug Ross, and on Free Republic shed light on the campaign contributions of the targeted dealers — who happen to lean Republican. Is Obama capable of such Chicagoland thug tactics? Of course he is, and I’ve pointed out many cases of it over the past two years. But I would caution against carried away with “Nixon enemies list” rhetoric until a thorough vetting of the dealers on the list is done — which may take a while, but...