Furor grows over partisan car dealer closings

Washington Examiner ^ | May 28, 2007 | Mark Tapscott

[IbJensen]

Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans. What started earlier this week as mainly a rumbling on the Right side of the Blogosphere has gathered some steam today with revelations that among the dealers being shut down are a GOP congressman and closing of competitors to a dealership chain partly owned by former Clinton White House chief of staff Mack McLarty.

The basic issue raised here is this: How do we account for the fact millions of dollars were contributed to GOP candidates by Chrysler who are being closed by the government, but only one has been found so far that is being closed that contributed to the Obama campaign in 2008?

Florida Rep. Vern Buchanan learned from a House colleague that his Venice, Florida, dealership is on the hit list. Buchanan also has a Nissan franchise paired with the Chrysler facility in Venice.

"It's an outrage. It's not about me. I'm going to be fine," said Buchanan, the dealership's majority owner. "You're talking over 100,000 jobs. We're supposed to be in the business of creating jobs, not killing jobs," Buchanan told News 10, a local Florida television station.

Buchanan, who succeeded former Rep. Katharine Harris in 2006, reportedly learned of his dealership's termination from Rep.Candace Miller, R-MI. Buchanan owns a total of 23 dealerships in Florida and North Carolina.

Also fueling the controversy is the fact the RLJ-McCarty-Landers chain of Arkansas and Missouri dealerships aren't being closed, but many of their local competitors are being eliminated. Go here for a detailed look at this situation. McClarty is the former Clinton senior aide. The "J" is Robert Johnson, founder of the Black Entertainment Television, a heavy Democratic contributor.

A lawyer representing a group of Chrysler dealers who are on the hit list deposed senior Chrysler executives and later told Reuters that he believes the closings have been forced on the company by the White House.

"It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers. It really wasn't Chrysler's decision. They are under enormous pressure from the President's automotive task force," said attorney Leonard Bellavia.

RedState.com's Josh Painter has a useful roundup of what has been found so far by a growing number of bloggers digging into what could be a very big story indeed. Also, see my column on this issue and how it fits into the larger context dubbed by the Examiner's Michael Barone as "gangster government."

As part of Chrysler's bankruptcy agreement with the White House, the company plans to close roughly a quarter of its 3,200 dealerships. Lists of the dealerships being cut and those retaining their Chrysler franchises can be found here in pdf format. Many dealers contend the criteria being used to determine which dealerships survive is not clear and that many of those that are being closed in fact are profitable businesses, despite the current recession.

[ontap]

While dealers being closed might be Republicans I’ll bet my hat that the majority of the employees voted for “O”...I wonder how that change they can believe in is working out for them. Be careful what you wish for...I bet a bunch of them were hoping he would sock it to the rich. Well guess what the boss is still rich and they’re unemployed!

[Big_Monkey]

"Anyone shocked?

To be honest, I am a little shocked. I put this on the scale of the Watergate break in - and no, I'm not kidding.

These dealers are effectively wiped out. Years, decades and even generations of wealth destroyed, apparently all in some type of political pay-back scheme. There has to be some criminality here, especially if there's collusion involved. And frankly, how could there not be? A RICO violation perhaps?

And, where is "America's Newspaper of Record" in all of this mess? Has the NYT's or the WaPo even ran a single story?

The America that was buoyed by an fiercely independent, curious and cynical free press, is now all but dead.

[Landru]

>ping< to #8.

Just a friendly FYI. ;^)

[Landru]

"I don’t know if the administration is stupid enough to try a stunt like this."

Oh they're stupid enough alright while overflowing with a kind of chutzpah that'll easily obscure good, reasoned judgment.

[DuncanWaring]

I can think of all sorts of reasons off the top of my head that this could benefit Chrysler. More money in its pockets at the end of the day is the result here.

How does "fewer dealers" mean "more money in the pockets at the end of the day" for Chrysler?

[truthandlife]

This war will be won in small battles and this battle is worth fighting. These are the little things that will add up to these guys being defeating in 2010 and 2012.

[lwd]

For an accurate comparison to be made, we need to know (to the best of our abilities) what the total percentage of dealerships political affiliation is; how many are R and how many are D. And then compare the percentage of each group has been closed.

[ontap]

They're arrogant enough...he thinks he is above reproach and that anything he does will be forgiven because of his perfection. To some this is true....but if you lose your job because thee government forced it on your boss the majority of the people affected will know. Even if he is immune to criticism the Senators and Congressmen are not.

[NC28203]

>>>For an accurate comparison to be made, we need to know (to the best of our abilities) what the total percentage of dealerships political affiliation is; how many are R and how many are D. And then compare the percentage of each group has been closed.

Something along these lines of this put together by The National Newspaper Publishers Association, also known as the Black Press of America.

Of the 789 Chrysler dealers who were notified that their contracts will not be renewed, 38 are minority owned. At the end of April, there were 154 minority dealers in Chrysler’s 3,181 total U.S. dealer body network. You’ll see that 4.8% of the auto dealerships closed were minority owned. Total percentage of all Chrysler dealerships that are minority owned? 4.8%

[Big_Monkey]

"You’ve already made up your mind. The facts aren’t out but you’ve decided.

I would hope that my attitude is one that would be shared by the editors of America's great newspapers. In much the same way that most of them made up their minds about criminality in the...

Bush US attorney firing
Bush lied about WMD
Halliburton was a war profiteer
Bush did drugs in the ANG
etc. etc. etc

I know a little something about the auto dealer business. And, as others have pointed out, there were very successful dealerships closed while protecting under performing neighboring dealerships. I can't imagine what credible business reason one would have to fire a performer in favor of a liability

I watched for eight years as a President and his party were convicted in the press with MUCH less evidence. It's clear that the old media isn't going to touch this story. So, what's good for the goose, is good for the gander. I say to the people lobbing allegation of corruption, graft and political payback, keep it coming.

As for being taken seriously by the MSM, I think that the last 16 months have proven, without equivocation, that conservatives will never be taken seriously by the current incarnation of the traditional media. If that's your goal, you need to set more realistic standards.

[Landru]

>ping<

Looks like the *thing* is picking up steam, hopefully it'll soon take on a life of its own and we'll be able to inch toward an end of this nonsense.

[PapaBear3625]

First thing is that they aren’t closing the dealerships per se. They are declining to continue offering them franchise rights. They can still sell the cars and parts the have on hand but they can’t call themselves Chrysler dealers.

The big profit center of a dealership is its right to make warranty repairs on cars and bill that back to Chrysler. The loss of franchise rights ends that profit center, and makes the dealer repair center just another service station.

[Ann Archy]

Republican dealerships bad....Democrat dealerships good. OMG!

Did Germany start this way?? Or did Hitler kill Jews from the first moment in power??

[Bob]

I can think of all sorts of reasons off the top of my head that this could benefit Chrysler.

Could you list a few of them?

What's the cost to Chrysler for maintaining its relationship with a franchisee? Unless they can save a bunch of money by eliminating them, I just don't see any benefit to Chrysler of having fewer dealers selling their products.

[Big_Monkey]

"First thing is that they aren’t closing the dealerships per se. They are declining to continue offering them franchise rights.

Ok, now I know you have no idea what you're talking about. What you say is a difference without a distinction.

Let's say you just plunked down $1 million for land, a building, inventory and signage and another $5 million for a franchise fee. But, right before you open, McDonald's says "Hey, you can't really call yourselves McDonald's, and we're aren't going to be selling you anymore product and you we're not going to give your franchise fee back, but you can keep your building open if you like?" Exactly how is that "not closing the business?"

These dealers are entitled to due process. A fundamental right that has been unilateral stripped by the Obama administration. People, and especially the media, are FULLY correct to look at these actions wearing very skeptical glasses.