The Dead Pool of Chrysler, Dodge and Jeep Dealers
05-28-2009, 02:19 PM
#31
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The best way to put Chrysler and GM out of business is to:
1. Close dealerships thereby reducing your market area. This will force customers to travel further parts, new vehicles, and service. This is predicted [ABC news] to put a combined number of 100,000 people out of work. Fewer local business in your area will also reduce your local collected tax base thereby placing a higher tax burden on local residents.
2. Force dealerships to purchase their current on hand inventories. This was discussed on our local news. Dealers with eighty years of service are being forced into this. There will be a lot of brand new vehicles going to the used car auto auctions.
3. Stop the production of current designed vehicles and retool for US production of Fiat or other foreign based designs under the disguise of the familiar names of the discontinued models.
So my question is who is in charge of making these decisions. It certainly doesn't look as if it's anyone who has ever run a business. Somebody better find out who is making these kinds of decisions and get RID of that person and not the marketing outlets.
1. Close dealerships thereby reducing your market area. This will force customers to travel further parts, new vehicles, and service. This is predicted [ABC news] to put a combined number of 100,000 people out of work. Fewer local business in your area will also reduce your local collected tax base thereby placing a higher tax burden on local residents.
2. Force dealerships to purchase their current on hand inventories. This was discussed on our local news. Dealers with eighty years of service are being forced into this. There will be a lot of brand new vehicles going to the used car auto auctions.
3. Stop the production of current designed vehicles and retool for US production of Fiat or other foreign based designs under the disguise of the familiar names of the discontinued models.
So my question is who is in charge of making these decisions. It certainly doesn't look as if it's anyone who has ever run a business. Somebody better find out who is making these kinds of decisions and get RID of that person and not the marketing outlets.
The problem is that there are too many new cars sitting on car lots. By dodge offering 10-19 grand off it's trucks to get rid of them it is putting everyone under. One of them has got to go IMO they are eatting each other alive, the american auto industry needs to be reshaped into a modern design.
Oh and whats the end result of knocking that much off each truck you sell? Where does the money come from? How do you pay that money back? How do you put money back into the company, things like R&D? All you end up with is another era of cruddy american cars.
What they are doing to get rid of cars sitting on car lots is getting rid of dealerships as noted above in the previous posts.
05-28-2009, 03:44 PM
#32
DTR 1st Sergeant
This is interesting... from todays Washington Examiner
Is Obama closing GOP-leaning car dealers?
By: Mark Tapscott
Examiner Columnist | 5/28/09 3:55 PM
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 Nixon 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 Obama’s White House auto industry potentates are targeting for closure Chrysler dealers with records of contributing either to Republicans like John McCain or to other Democrats in the 2008 presidential primary.
Posts at RedState, Reliapundit, American Thinker, Gateway Pundit, Joey Smith and Doug Ross pointed intitially at the remarkable number of closed Chrysler dealerships whose owners happen to have been contributors to Obama opponents, mainly Republicans.
But those observations were all couched with important qualifiers, particularly that all conclusions were necessarily preliminary, pending completion of a comprehensive analysis of the political contributions by all closed Chrysler dealership owners, and a comparison of those results with contributions by dealers who are not being closed.
That said, when multiple dealers who have been closed are found to have contributed millions to Republicans and mere hundreds to Obama, the serious number-crunching cannot be completed too soon.
Then there is the Reuters report quoting a lawyer representing dealers being closed who came away from a deposition of a senior Chrysler executive with the distinct impression that the company is simply following orders coming from 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.
Bellavia zeroed in on the fundamental problem with Obama’s takeover of two of Detroit Big Three – something is terribly wrong when the government tells corporations who to hire and fire, what products to sell and who will be their dealers.
"What is the next task force? Shoe stores? Pizzerias?" Bellavia said. "The problem we have is the free enterprise system is not run by the government, it's run by business entrepreneurs. The dealers themselves will decide if it's not productive to go forward."
In view of these facts, when is the mainstream media going to challenge Obama to explain why he thinks he can do a better job running car companies than can the shareholders, bondholders and dealers? And where in the Constitution does it say the president has such authority in the first place?
More to the point, when is the mainstream media going to start calling what Obama is doing what it is, which at the very least is a crude kind of South American crony statism. Given the Chicago roots of Obama and his chief of staff, the phrase used recently by the Examiner’s Michael Barone is probably most accurate - “gangster government.”
If you doubt the accuracy of Barone’s formulation, check out another recent Reuters report, this one on a recent study by the California-based bond strategist Christopher Garman. Garman compared “spreads, or bonds' extra yields over U.S. Treasury yields, for companies with collective bargaining agreements with the high-yield bond market as a whole.”
And guess what? According to Reuters, Garman found that spreads for unionized companies were 11 percent higher in February than those without collective bargaining agreements, and the gap has remained, measuring at nine points this month.
In other words, companies that want to prosper in the anti-capitalist world Obama is creating in America will first have to make their peace with Big Labor before heading to Washington hat-and-checkbooks-in-hand to seek favor from the strong men in the White House and their enforcers in the Treasury Department and elsewhere in the executive branch.
Obama calls it “change we can believe in.” Vito Corleone called it “making them an offer they can’t refuse.”
Mark Tapscott is editorial page editor of The Washington Examiner and proprietor of Tapscott’s Copy Desk blog on washingtonexaminer.com
Is Obama closing GOP-leaning car dealers?
By: Mark Tapscott
Examiner Columnist | 5/28/09 3:55 PM
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 Nixon 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 Obama’s White House auto industry potentates are targeting for closure Chrysler dealers with records of contributing either to Republicans like John McCain or to other Democrats in the 2008 presidential primary.
Posts at RedState, Reliapundit, American Thinker, Gateway Pundit, Joey Smith and Doug Ross pointed intitially at the remarkable number of closed Chrysler dealerships whose owners happen to have been contributors to Obama opponents, mainly Republicans.
But those observations were all couched with important qualifiers, particularly that all conclusions were necessarily preliminary, pending completion of a comprehensive analysis of the political contributions by all closed Chrysler dealership owners, and a comparison of those results with contributions by dealers who are not being closed.
That said, when multiple dealers who have been closed are found to have contributed millions to Republicans and mere hundreds to Obama, the serious number-crunching cannot be completed too soon.
Then there is the Reuters report quoting a lawyer representing dealers being closed who came away from a deposition of a senior Chrysler executive with the distinct impression that the company is simply following orders coming from 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.
Bellavia zeroed in on the fundamental problem with Obama’s takeover of two of Detroit Big Three – something is terribly wrong when the government tells corporations who to hire and fire, what products to sell and who will be their dealers.
"What is the next task force? Shoe stores? Pizzerias?" Bellavia said. "The problem we have is the free enterprise system is not run by the government, it's run by business entrepreneurs. The dealers themselves will decide if it's not productive to go forward."
In view of these facts, when is the mainstream media going to challenge Obama to explain why he thinks he can do a better job running car companies than can the shareholders, bondholders and dealers? And where in the Constitution does it say the president has such authority in the first place?
More to the point, when is the mainstream media going to start calling what Obama is doing what it is, which at the very least is a crude kind of South American crony statism. Given the Chicago roots of Obama and his chief of staff, the phrase used recently by the Examiner’s Michael Barone is probably most accurate - “gangster government.”
If you doubt the accuracy of Barone’s formulation, check out another recent Reuters report, this one on a recent study by the California-based bond strategist Christopher Garman. Garman compared “spreads, or bonds' extra yields over U.S. Treasury yields, for companies with collective bargaining agreements with the high-yield bond market as a whole.”
And guess what? According to Reuters, Garman found that spreads for unionized companies were 11 percent higher in February than those without collective bargaining agreements, and the gap has remained, measuring at nine points this month.
In other words, companies that want to prosper in the anti-capitalist world Obama is creating in America will first have to make their peace with Big Labor before heading to Washington hat-and-checkbooks-in-hand to seek favor from the strong men in the White House and their enforcers in the Treasury Department and elsewhere in the executive branch.
Obama calls it “change we can believe in.” Vito Corleone called it “making them an offer they can’t refuse.”
Mark Tapscott is editorial page editor of The Washington Examiner and proprietor of Tapscott’s Copy Desk blog on washingtonexaminer.com
05-28-2009, 10:56 PM
#36
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05-28-2009, 11:59 PM
#37
With age comes the cage
Maybe Chrysler was setup to loose..
Why did Cerberus ask fired Home Depot (HD) CEO Bob Nardelli to run Chrysler?
Link to story - Read some of the comments by the previous HD employees :
http://www.bloggingstocks.com/2007/0...nardelli-to-r/
Chrysler's bio on Nardelli:
http://www.chryslerllc.com/en/about_us/our_team/?name=
Why did Cerberus ask fired Home Depot (HD) CEO Bob Nardelli to run Chrysler?
Link to story - Read some of the comments by the previous HD employees :
http://www.bloggingstocks.com/2007/0...nardelli-to-r/
Chrysler's bio on Nardelli:
http://www.chryslerllc.com/en/about_us/our_team/?name=
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