Posted on 05/19/2009 10:29:47 AM PDT by American Dream 246
“Look at the numbers for dealership by dealership new car sales and you will probably agree that Chrysler had way too many franchises. A thinning of the herd was necessary.”
That may or may not be true. However, the selection of which dealerships stay open and which close seems to have nothing to do with performance. I have now heard of at least three highly successful dealerships that are losing their franchise, while others that were not performing well keep theirs. This is about the government dictating winners and losers.
By the way, dealerships do not cost Chrysler any money - they MAKE Chrysler money. Even the low volume dealerships make money for Chrysler from parts, marketing materials, etc. Obama is killing off the only profitable part of the system...
Everyone seems to be all upset - so what’s the solution? I know - the federal government can throw even more tax payer dollars into the kitty to prop up the individual dealers! Oh wait, we got upset when they were bailing out the manufacturer - that doesn’t make sense.
He still owns a building and he has an inventory of cars that have a value. He has the employees, the knowledge, and the facilities to operate a care dealership. I suggest that the man start selling more cars. Thousands of businessmen make a profit every year in the used car business, I’m guessing this gentleman is one of them.
Someone ask the fine gentleman how much of his annual gross comes from new cars and how much from used? Then someone ask Chrysler how they picked his dealership for closure.
This kind of action should have been taken years ago. A few months ago we were complaining that Chrysler needed to cut the fat and get smarter in how they do business, now that you hear a few sob stories suddenly it’s the big bad government’s fault.
I’m no fan of the bailouts and far from a fan of our current POTUS, but when theory comes to reality and tough decisions have to be made we conservatives get all wishy washy just like the libs do.
We scream “don’t raise my taxes!” but we demand the government services just like everyone else.
We hate the bailout - we said let Chrysler file CH11 - well, where would this guy be if there were no Chrysler? If the government had done what we wanted and let Chrysler fail - there would be no new Dodge dealerships period.
So, now instead of there being none, there will be fewer, and it’s a shame, but it’s not up to government to provide or save businesses. If he wants to ‘show them’ - he should move on, and find a way to emerge victorious. I’m not saying it’s not sad, or even that it’s fair, but it’s necessary all the same.
I wonder how many of the dealerships getting these peoples franchise rights monetarily supported Obama?
What makes you say that? You think Chrysler manages it dealership network at no cost? Do you seriously think it would cost Chrysler the same amount of money to manage one dealership as opposed to ten thousand?
A lot of people seem to think that franchisors just walk to the mailbox and pick up checks from their franchisees. Not so.
Don’t worry , the ACLU will come riding to the rescue.
Sorry. The best thing he can do is to start looking for another manufacturer to supply him with new cars.
There is a minimum stock required for a dealership.
There are a certain number of cars that will go unsold at the end of every model year and eventually be molded into the used car inventory.
Fewer dealerships does not necessarily mean fewer new car sales.
What it most certainly means is fewer overstock conversions at the end of each year.
But maybe I’m just clueless and Chrysler is going about this all wrong (and maybe Toyota and Honda have no clue either - they maintain far fewer dealerships than the big three while selling just as many cars each year).
Maybe what they need are MORE dealerships - one on every corner! And we can use stimulus projects to build them!
Short version - assertions that dealership franchises have no cost to the factory are simply untrue.
I’ve wondered if the closings are related to one’s politics. It’s easy enough to find out if someone is a member of the GOP. I’ve heard of a couple dealers who were top producers (one guy said he was in the top 2 percent of dealerships) yet their dealerships were on the “close” list. Why would they close a productive dealership, in the top 2 percent of the stats? I’m wondering if there were political implications in deciding who they closed and who stayed open. No way you could prove it, but it gives one pause...after all we’re talking Chicago style political games being played out of Washington DC.
Not when the retail outlets are cost free franchises.
Many of the ones closing are the most profitable. There was an article the other day listing some of them and pointing that fact out.
Yep, Galt time is near an end...
(tagline)
Makes me ponder the ethnicity and ACORN connections of the newly designated owner... hmm.
May I suggest sending in your resume to Chrysler since you clearly know more than they do.
What evidence do you have that the dealerships being closed were top performers in NEW car sales?
What evidence do you have that the government was involved in the selection of dealerships to close?
Unless you forgot to read the fine print in your contract with Chrysler, and that allows them to terminate you this way, I'd be seeing 'em in court.
More than likely more than half of your employees voted for this idiot. If you can determine which ones make sure they are the first ones out the door. As for your self we will pray that you get through this debacle. Spread the word and let the country know what change you can believe in has meant to you. With the help of victims like you the truth about this little communist will shine down.
Is there a map to compare which states were the hardest hit?
Obama was so busy protecting the unions he did not protect the business. (obama killed the goose in order to get all the gold eggs at once)
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