Location: On an Island in the west coast of New England
Posts: 13,133
Dealership closings
What is the possible benefit for the Chrysler and GM dealership closings? I can't for the life of me figure out how this will help their bottom line since all the cars and parts are already bought by the dealerships. It isn't going to benefit the car companies. Are dealerships hoping to create alower supplyto demand to increase their bottom line (removing competition)? What will less dealership mean to the car companies? Does it mean they will not make as many vehicles? What happens to the cars that are already on these lots and were paid for? Can the dealerships sell them as new cars especially when they no longer have the franchise? The government bails out the car companies to keep them solvent and then the companies pull the rug out from under 2 to 3 thousand dealerships putting hundreds of thousands of people out of work. It looks like the American tax payer and consumer gets porked again.
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Too busy with fishing to spend much time here.
CI, the real question has to do with the rule of law. Under what authority does the government have the right to pick and choose who get's shut down and then all their business is handed over to someone else for free? What compensation is that dealer getting?
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
They don't have the power UNLESS WE LET THEM DO IT. They are voting themselves power that belongs ONLY to the people. We MUST vote every one of them out. That is the only voice we have. We are letting them do all this stuff because we won't get involved and vote for real CHANGE, And that sure as hell is not osama and his crew, they have taken the worst of every problem we had and multiplied it by ten. The people that you and I voted in are doing it to us. Both parties have sold us a pile of fertilizer for decades and decades. For my part in it, I apologize, it won't happen again. NO INCUMBENTS.
I have the same question that CI has asked. If the manufacturers were paying the rent and utilities, etc., and the employee wages and benefits, I could see where closing dealerships would save money. Aren't these dealerships private businesses which buy cars from the manufacturer and resell them?
There may be some sophisticated connection which I'm not grasping, but I would sure like an explanation.
And maybe someone could explainhow all the plant closings and layoffs, both in the public and private sector are supposed to stimulate the economy.
Remember, wool is a renewable resource
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I heard Jesus He drank wine and I bet we'd get along just fine.
Location: On an Island in the west coast of New England
Posts: 13,133
RE: Dealership closings
Quote:
ORIGINAL: Fieldmouse
CI, the real question has to do with the rule of law. Under what authority does the government have the right to pick and choose who get's shut down and then all their business is handed over to someone else for free? What compensation is that dealer getting?
Good point. They interviewed a couple of Chrysler dealerships that got axed and they said there was no recourse. The companies have the final say who stays and who goes. The dealership is basically left with showroom inventory, parts and tools that become almost worthless if they can't find a buyer. This all comes down real fast, I think the signs have to be down in 30 days. I feel sorry for these dealerships and the people who work there. I could understand if the main car companies were going to achieve better return by controlling costs but the dealerships don't cost them anything. It just seems wrong that the people who bailed them out (tax payers) are the same people who will be losing their businesses and jobs. I am not all that trusting of large business and smell a rat. Same thing with the banks. They get bailed out with billions and are supposed to boost the economy by lending money and they didn"™t.
Just got the update on the CBSnews and GM at least will give the dealerships a year to wind down as opposed to the 30 days for Chrysler. They interviewed a GM exec and he said the car companies would benefit simply due to less dealerships will remove competition which drives prices down. This seems wrong and more in line with price fixing. All this will affect the people who own the dealerships and will lose their livelihood, the local people who work there, the connecting businesses that serve them and last but not least the taxes the dealership and its employees pay to the state and federal government.
Of the big 3 only Ford had remained amanufacturer I would ever trade with and the jury is still out with them. The last GM I will ever own is sitting in my driveway and I can't wait to get rid of it.
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Too busy with fishing to spend much time here.
Just got the update on the CBSnews and GM at least will give the dealerships a year to wind down as opposed to the 30 days for Chrysler. They interviewed a GM exec and he said the car companies would benefit simply due to less dealerships will remove competition which drives prices down. This seems wrong and more in line with price fixing. All this will affect the people who own the dealerships and will lose their livelihood, the local people who work there, the connecting businesses that serve them and last but not least the taxes the dealership and its employees pay to the state and federal government.
Of the big 3 only Ford had remained amanufacturer I would ever trade with and the jury is still out with them. The last GM I will ever own is sitting in my driveway and I can't wait to get rid of it.
This is pretty much what these big paper companies has been doing. Price fixing so that they can control how much money is being made. Then they turn around and invest abroad. Those same ones they invested in are the same ones that dropped the prices and put the American companies out of work.. It just burns me on how they play a big game with it for those shareholders..
Location: On an Island in the west coast of New England
Posts: 13,133
RE: Dealership closings
The local news said they didn't find any GM dealers in state that lost their franchise. Then I heard an out of state dealer on cable news say they aren't admitting they got the boot to try and sell as many cars as they can in the next year. They are afraid that if the word got out people wouldn't buy from them. One out of state Dodge dealer who got booted said the same day he got his notice from Chrysler he got a note from his commercial bank that said they would no longer loan him money. Somehow they got the inside scoop on which dealerships were going south and didn't want to get stuck with any paper.
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Too busy with fishing to spend much time here.
Just got the update on the CBSnews and GM at least will give the dealerships a year to wind down as opposed to the 30 days for Chrysler. They interviewed a GM exec and he said the car companies would benefit simply due to less dealerships will remove competition which drives prices down. This seems wrong and more in line with price fixing. All this will affect the people who own the dealerships and will lose their livelihood, the local people who work there, the connecting businesses that serve them and last but not least the taxes the dealership and its employees pay to the state and federal government.
Of the big 3 only Ford had remained amanufacturer I would ever trade with and the jury is still out with them. The last GM I will ever own is sitting in my driveway and I can't wait to get rid of it.
This is pretty much what these big paper companies has been doing. Price fixing so that they can control how much money is being made. Then they turn around and invest abroad. Those same ones they invested in are the same ones that dropped the prices and put the American companies out of work.. It just burns me on how they play a big game with it for those shareholders..
Oh really, is that what happened to you? Remember, Chrysler is now an arm of the Obama administration. Obama hand picked the task force dictating policy. Obama has already said no to their advertising campaign and cut it in half. Stolen the property of law abiding citizens of the USA and given it to his political supporters called the UAW who isn't entitled to it. They pulled the plug on these dealerships. Is this what Obama did to your paper company?
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Dealership closings
Remember, wool is a renewable resource
