Posted on 06/06/2009 3:03:58 PM PDT by Jim Robinson
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 theyre 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 Chryslers decision to close profitable automobile dealerships across the country, and urge you to ask GM and Chrysler to delay final action on proposed closures pending further review of the decision to consolidate dealerships and the process by which Chrysler and GM selected the dealerships to close.
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. Furthermore, we believe car dealers will be key players in any effort to revive the American auto industry.
We believe the dealerships are one of the auto industrys key sources of strength and the manufacturers should continue to honor their agreements and contracts. The dealerships, and their more than 1 million employees, form personal relationships with customers that often contribute to brand loyalty and will be key to General Motors and Chryslers recovery following this economic downturn. While we understand the desire to reduce the number of unprofitable dealerships, no one has yet sufficiently explained the need to close profitable dealerships.
We recognize that efforts by your Auto Task Force prevented the total liquidation of General Motors and Chrysler, as well as their dealership networks. We commend your efforts to help these businesses survive these challenging economic times.
However, we are concerned that manufacturers are closing profitable dealerships to circumvent current contracts which could require expensive buy-outs under normal conditions. We are also concerned about allegations that dealers that have previously stood up for their rights against the manufacturers are being targeted by these closures. We believe that the forced closures of profitable dealerships needs to be scrutinized by the Task Force to prevent additional future financial loses to General Motors and Chrysler and job loses across the United States
We may consider legislative proposals to ensure that dealers and their employees are treated fairly, and we look forward to your timely response.
LOL! Thanx ;-)
It is a little more basic. Congress has recessed and they are back in their districts. I suspect they’re getting it from all sides including those RAT car owners suddenly realizing those “free oil change for life” deals went up in smoke and they’ll have to burn a vacation day to get the car serviced.
Hey Steny, didn't 0 tell you?
He won!
How you likin' the change?
November 2010 is rapidly approaching.
from the hearing, the automakers logic.. is that some dealerships are not very good at selling cars..
Thus, the amount of cars that should be sold for their market is not being met.. So, they want to get rid of the under performing dealerships and replace them with better performing ones.. or in some cases letting a nearby better performing dealer take over that area..
also, there is an argument about economies of scale.. with fewer dealerships.. each dealership will be larger and thus be able to purchase big chunks of ads in big markets..
also there is some slight cost of materials and training dealerships on cars i guess.. which would be reduced with fewer dealers..
Easy, it's called the government buying the cars they make with our money. You don't need dealerships to sell cars to yourself now do you?!?
I talked to a UPS driver here in Orlando a couple of days ago who said Holler Chevrolet was one targeted and they plan to fight the closing. They have been in Orlando for 70 years.
7 August 1998
Asbury Automotive is led by Tom Gibson, a former Ford and Chrysler executive; and former president of Subaru of America. Asbury has invested in a network of leading dealerships throughout the country.
The McLarty Group developed from the Hope Auto Company, established in 1921. The business expanded under the leadership of Mack's father, Frank McLarty, who was also a pioneer in the U.S. truck leasing industry. Today the dealership group includes North Point Ford Lincoln-Mercury, North Point Mazda Volkswagen, and Prestige Toyota BMW in North Little Rock; Premier Pontiac Nissan Lincoln-Mercury in Little Rock; McLarty Ford Chrysler Plymouth Dodge in Texarkana, Texas; and Hope Ford Lincoln-Mercury Chrysler Plymouth Dodge Jeep in Hope.
The McLarty Group owns and operates 19 automobile dealerships franchises in Arkansas and Texas. Based on total sales, the company ranks among the top 50 dealer groups in the United States with annual revenues of approximately $400 million and retail sales of over 15,000 new and pre-owned vehicles.
Asbury, a dealership network with approximately $3 billion in revenues, owns and operates one of the nation's largest groups to retail, lease, service and finance new and pre-owned cars and trucks. Asbury is a portfolio investment of Ripplewood Partners and Freeman Spogli & Co. Ripplewood and Freeman have also formed Millbourne Equity Trust to invest in automotive retail related real estate.
“How do you sell more products by closing dealers?”
HMMMMM. (Looking in basic economics textbook.)
Nope, don’t see anything there.
BTW, in my town, we have a Ford dealer, and across the street is a dealer that handles GM stuff. (Buick,Chevy,Caddy,and Pontiac.) They also have Dodge and Jeep.
The GM contract was thrown out. They are hanging on to the Mopar side for now.
My Friend, the Ford dealer is barely dog-paddling as of now.
This is a huge blow to our town.
He needs the dealership franchises vacated so he can hand them out to minorities and financial supporters.
Sounds like the senate is getting a little nervous about Ceasar’s behavior.
Thanks, I saw that yesterday.
Strictly coincidence!
That would help explain Penske getting Saturn.
“Easy, it’s called the government buying the cars they make with our money. You don’t need dealerships to sell cars to yourself now do you?!? “
No ... you don’t.
*sigh*
Here in Palm Beach we have a dealership called Arrigo Dodge Chrysler Jeep, and they’re running tv ads about purchasing cars from them being the patriotic thing.... they even use a sound clip from an Obama speech in the ad.....
They aren’t closing. Any guess who Arrigo gives money to? Last election cycle he gave to the Lib Congressman Ron Klein:
ARRIGO, JIM
WEST PALM BEACH, FL 33411
ARRIGO DODGE/OWNER
KLEIN, RON
VIA KLEIN FOR CONGRESS
09/06/2007 1000.00 27931395184
09/06/2007 2300.00 27931395184
“We are also concerned about allegations that dealers that have previously stood up for their rights against the manufacturers are being targeted by these closures”
###########
More thug activity going on? Voice an opinion & you’ll lose everything?
The Zero cars will have tracking devices, monitors, & microphones installed in them so the admin can track any dissidents among the masses...you know, us extremists! Any dealerships not complying with the new Zero spy ring, will be put out of business.
I will never purchase a vehicle from a company that has the govt’s hands in it.
The Republicans have so much ammunition that they should be in full throated rebel yell and attacking and outflanking the Democrats on so many issues now. But, some people fight, and some are ..ssies.
The empty suit is going to F them just as quickly as the
moronic pobot voters who bought into his total BS story.
That’s my place, right there—the one with the chaise lounge on the deck next to the big potted palm tree the maid is trying to hide behind... /s
How do you keep that potted plant??? My neighbors ate mine...
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