How can this happen in America?

[devildog]

From American Thinker. (http://www.americanthinker.com/blog/2009/05/letter_from_a_dodge_dealer.html)

My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.


We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.


I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.


On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.


Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.


HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?


THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY


This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.


This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.


HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?


I beseech your help, and look forward to your reply. Thank you.


Sincerely,



George C. Joseph
President & Owner
Sunshine Dodge-Isuzu

[Spang]

Who did he write this letter to?

[devildog]

It was a letter to an editor, and was originally sent to PrisonPlanet.com. (http://www.prisonplanet.com/letter-from-a-dodge-dealer.html) Why should it matter?

[Spang]

It was a letter to an editor, and was originally sent to PrisonPlanet.com. (http://www.prisonplanet.com/letter-from-a-dodge-dealer.html) Why should it matter?

Well, if I owned my own business and I was notified that it would be taken from me, I would not be writing prisonplanet.com.

[Horizon]

Well, if I owned my own business and I was notified that it would be taken from me, I would not be writing prisonplanet.com.

What is this prisonplanet? Looked very far right to me.

[devildog]

He sent it to a bunch of politicians, too and emailed it out to a bunch of people. Don't worry Spang, it's a legit letter and not some stupid chain email. :rolleyes:

Source: Florida Today, which is a Melbourne, FL newspaper. (http://www.floridatoday.com/apps/pbcs.dll/article?AID=2009905200319)

[Spang]

He sent it to a bunch of politicians, too and emailed it out to a bunch of people. Don't worry Spang, it's a legit letter and not some stupid chain email. :rolleyes:

It's his business, not mine.

[Alces95]

From American Thinker. (http://www.americanthinker.com/blog/2009/05/letter_from_a_dodge_dealer.html)

This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.


HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?



This is exactly what should happen in a free market economy. The product was poor and he was franchising from a company that hasn't worked since the k-car. That wasn't a great idea either!

I feel bad for his situation but this is what can happen in any business. Is he asking for more corporate welfare and free market all in one letter?:confused:

[Laura Cereta]

Ch. 11 bankrupcy always hurts "the little guy." :(

[agatha]

This is exactly what should happen in a free market economy.


Not exactly. If his franchise wasn't making a profit, he would have been forced to sell his inventory and franchise to another dealer by the bank, not the federal government.

[Lealy]

Not exactly. If his franchise wasn't making a profit, he would have been forced to sell his inventory and franchise to another dealer by the bank, not the federal government.

Exactly. Many of the dealers that are being shut down in my area are in fact turning a profit which flies in the face of a smart decision economically to shut them down. On top of which with all the closures of American dealerships what will be left in my area, that's right foreign car dealerships you think I am going to drive 1 hour away no way to get a American made car that was really made in Brazil.

[Suzan]

Originally Posted by Alces95
This is exactly what should happen in a free market economy.


Originally posted by Agatha
Not exactly. If his franchise wasn't making a profit, he would have been forced to sell his inventory and franchise to another dealer by the bank, not the federal government.

genericstamp! This is exactly what should never have happened.

[agatha]

genericstamp! This is exactly what should never have happened.


I'm confused as to what you are "stamping." :laughing:

[agatha]

You know, another thing I haven't figured out yet is how closing dealerships will save the auto makers themselves any money? It doesn't cost them anything to have dealers/franchises. So if the dealer was making money, they why in the world would you close a profitable dealer? And if it wasn't making money, it would have found its own way into foreclosure or merger.

[Suzan]

Quote:
Originally posted by Agatha
Not exactly. If his franchise wasn't making a profit, he would have been forced to sell his inventory and franchise to another dealer by the bank, not the federal government.

I was agreeing with your brilliance. ;)

[cindyb]

Change you can believe in, don't you love it?

This is happening all over this country and the Obama administration doesn't care about all the small business owners going belly up.

I think this is a travesty and the Obama administration is criminal.

[agatha]

I was agreeing with your brilliance. ;)

Well then thank you kindly! :thumbsup: :laughing:

[Spang]

I think this is a travesty and the Obama administration is criminal.

That's pretty much par for the course of all Dick Cheney supporters. I've yet to meet anyone who supports Cheney and Obama.

[Lealy]

That's pretty much par for the course of all Dick Cheney supporters. I've yet to meet anyone who supports Cheney and Obama.

I must have missed this today is Cheney shutting down dealerships? What does Cheney have to do with this? Why go that way it seems when the going gets tuff, O's talking points to Bush/this week Cheney? Stick with the sad fact that our government who is in control is shutting private businesses down and it makes no sense. Instead of saving jobs he is terminating them.

[Spang]

Stick with the sad fact that our government who is in control is shutting private businesses down and it makes no sense. Instead of saving jobs he is terminating them.

Is Obama the author of these notifications? Who's notifying these small businesses?

[Lealy]

Is Obama the author of these notifications? Who's notifying these small businesses?

POTUS is the leader of this Govt. and his appointee's including those who are notifying these small businesses. If jobs were being created you bet he would be taking credit and you would be touting it.

[Spang]

POTUS is the leader of this Govt. and his appointee's including those who are notifying these small businesses.

And we know this from a letter sent to prisonplanet.com?

[Lealy]

And we know this from a letter sent to prisonpolitics.com?

We know this because the O administration through their car Czar and his auto team are guiding Chrysler through a modified bankruptcy. These choices are not being made by Chrysler anymore than the dealers they are being made by our Govt and O is in charge.

[Spang]

We know this because the O administration through their car Czar and his auto team are guiding Chrysler through a modified bankruptcy. These choices are not being made by Chrysler anymore than the dealers they are being made by our Govt and O is in charge.

Well, this letter to prisonplanet.com didn't include that information. However, was it Obama's fault that people weren't buying Chrysler automobiles?

[Lealy]

Well, this letter to prisonplanet.com didn't include that information. However, was it Obama's fault that people weren't buying Chrysler automobiles?

I did not say any such thing. I said it was the O' administration that is choosing to close these dealerships down therefore terminating jobs not saving them.

[Spang]

I did not say any such thing. I said it was the O' administration that is choosing to close these dealerships down therefore terminating jobs not saving them.

If Chrysler had been a successful company, we wouldn't be having this discussion. That's all I'm saying.

[agatha]

If Chrysler had been a successful company, we wouldn't be having this discussion. That's all I'm saying.


I still want to know how shutting down independently owned franchises saves the manufacturers money?

[foxyladi]

Change you can believe in, don't you love it?

This is happening all over this country and the Obama administration doesn't care about all the small business owners going belly up.

I think this is a travesty and the Obama administration is criminal.

i hear a giant sucking sound..America going down the toilet..:eek:

[Spang]

I still want to know how shutting down independently owned franchises saves the manufacturers money?

I have no idea.

[Spang]

Fox News Embraces Right-Wing Theory That Obama Is Forcing GOP-Owned Car Dealerships To Close

Citing a handful of right-wing bloggers yesterday afternoon, the Washington Examiner reported ominously, “Evidence appears to be mounting that the Obama administration has systematically targeted Chrysler dealers who contributed to Republicans” for closure. Not to be outdone, Fox and Friends hosted conservative blogger Michelle Malkin this morning to play up the conspiracy theory. “Believe me Steve, over the last several years, we’ve all documented the Obama-Chicago-gangland tactics that certainly make this a possibility,” Malkin said.

Malkin’s speculative hysterics were apparently enough to pique the interest of Fox News White House correspondent Major Garrett. As he’s done with other right-wing conspiracy theories, he asked the White House for its response to the charges:

GARRETT: There is some concern in the blogosphere that of the of the Chrysler dealerships being closed, a disproportionate number appear to be in which the operators contributed to Republicans. And hardly which contributed to democrats have been closed down. I’m not saying the White House knows anything about this but would you be concerned about any taint of politics in any of the decisions.

Watch it:

YouTube

As Press Secretary Robert Gibbs explained to Garrett, it is Chrysler — not the federal government — that is in charge of selecting which dealerships will be closed. Further, as Nate Silver explained in a post that was published just hours after the Examiner’s initial report yesterday, “There is just one problem with this theory. Nobody has bothered to look up data for the control group: the list of dealerships which aren’t being closed.”

Silver explained, “It turns out that all car dealers are, in fact, overwhelmingly more likely to donate to Republicans than to Democrats — not just those who are having their doors closed.” In all, Silver found that “88 percent of the contributions from car dealers went to Republican candidates and just 12 percent to Democratic candidates,” while, the list of Chrysler dealerships being closed “gave 92 percent of their money to Republicans — not really a significant difference.”

The Source (http://thinkprogress.org/2009/05/28/right-wing-theory-car-dealerships-to-close/)

[Alces95]

I still want to know how shutting down independently owned franchises saves the manufacturers money?

Reduction of supply. Less need to produce cars.

I am still amazed at some of the people on this board who rail against bailouts but saw a different outcome here. Unbelievable. The buggy whip industry did nothing wrong either - but they closed because their product was not in demand from market forces outside of their control - government support automobile industry. Honestly, this should have happened months ago.

[sojourner]

I still want to know how shutting down independently owned franchises saves the manufacturers money?

There has to be some costs for GM associated with support of a franchise that are not apparent. For example, they could be obligated to pay for print and TV advertising and this expense could be fixed, independent of the number of cars that the franchisee sells. Add enough of these expense obligations up and they may be larger than the expected profits generated by the franchise.

[agatha]

Reduction of supply. Less need to produce cars.




That still does not explain how closing independently owned dealerships lowers costs to the manufacturers.

[agatha]

There has to be some costs for GM associated with support of a franchise that are not apparent. For example...


I guess. I wonder if it could be healthcare related?

[devildog]

Darn those right wing bloggers!

Consider the partial list of Chrysler dealership owners, listed below. You'll notice that all were opponents of Barack Obama, most through sponsorship of GOP candidates and organizations, but a handful through Barack's Democrat rivals (Hillary Clinton and John Edwards in 2008, for example).

• Vernon G. Buchanan: $147,450 to GOP candidates and organizations
• Wallace D. Alley and Family: $4,500 to GOP.
• Robert Archer: $4,600 to GOP and conservative causes.
• Homer S. Higginbotham and Family: $2950 to GOP.
• James Auffenberg and Family: $28,000 to GOP; $6,000 to one Democrat candidate.
• Michael Maroone and Family: $60,000 to GOP; $8,500 to two Democrat candidates.
• Jerome Fader: $6,500 to Democrats; $2,500 to Independent Joe Lieberman.
• Stephen Fay and Family: $13,500 to GOP.
• William Numrich: $20,000 to GOP.
• Robert Carver: $10,000 to Democrats including $1,950 to Hillary Clinton, nothing to Barack Obama.

• Robert and Linda Rohrman: $24,000 to GOP.
• Frank Boucher, Jr. and Family: $18,000 to GOP, $1,000 to one Democrat candidate.
• Scott Bossier: $4,300 to GOP.
• Todd Reardon: $17,000 to GOP; $2,000 to one Democrat candidate.
• Russ Darrow and Family: $78,000 to GOP.
• Bradford Deery and Family: $24,700 to GOP.
• Charles Gabus and Family: $30,000 to GOP.
• Brian Smith: $15,500 to GOP.
• Michael Schlossman: $14,000 to GOP; $14,000 to three Democrats ($12,500 to Sen. Russ Feingold).
• Don Hill: $11,000 to GOP; $12,800 to conservative incumbent Rep. Heath Shuler.

• Don Miller: $2,000 to GOP; $1,000 to Feingold.
• Eddie Cordes: $2,150 to GOP.
• Robert Edwards: $1,100 to GOP.
• James Crowley: $19,100 to GOP.
• Stanley Graff: $2,200 to John Edwards (2008 Presidential Run); $500 to GOP.
• John Stewart: $10,500 to GOP.
• John Fitzgerald and Family: $4,600 to John McCain (2008); $2,000 to Hillary Clinton (2008); nothing to Barack Obama.
• William Churchill and Family: $3,500 to GOP.
• Thomas Ganley: $9.450 to GOP.
• Gary Miller: $20,000 to GOP.

• Kevin and Gene Beltz: $18,500 to GOP.
• Arthur Grayson: $14,000 to GOP.
• Eric Grubbs and Family: $26,000 to GOP.
• Michael Leep and Family: $19,500 to GOP; $4,800 to three Democrats including Sen. Evan Bayh.
• Harry Green, Jr.: $10,000 to GOP.
• Ronald Hoover: $5,250 to GOP.
• Ray Huffines and Family: $18,500 to GOP.
• John O. Stevenson: $1,500 to GOP.
• James Marsh: $8,200 to GOP.
• Max Pearson and Family: $112,000 to GOP.

I have thus far found only a single Obama donor (and a minor one at that: $200 from Jeffrey Hunter of Waco, Texas) on the closing list.


Source: Doug Ross aka RIGHT WING Blogger. ALERT! ALERT! (http://directorblue.blogspot.com/2009/05/red-alert-did-campaign-contributions.html)

[Spang]

From above:

As Press Secretary Robert Gibbs explained to Garrett, it is Chrysler — not the federal government — that is in charge of selecting which dealerships will be closed. Further, as Nate Silver explained in a post that was published just hours after the Examiner’s initial report yesterday, “There is just one problem with this theory. Nobody has bothered to look up data for the control group: the list of dealerships which aren’t being closed.”

Silver explained, “It turns out that all car dealers are, in fact, overwhelmingly more likely to donate to Republicans than to Democrats — not just those who are having their doors closed.” In all, Silver found that “88 percent of the contributions from car dealers went to Republican candidates and just 12 percent to Democratic candidates,” while, the list of Chrysler dealerships being closed “gave 92 percent of their money to Republicans — not really a significant difference.”

Also, the original article the quote is from. (http://www.fivethirtyeight.com/2009/05/news-flash-car-dealers-are-republicans.html)

[devildog]

NEW YORK, May 26. A lawyer for Chrysler dealers facing closure as part of the automaker's bankruptcy reorganization said on Tuesday he believes Chrysler executives do not support a plan to eliminate a quarter of its retail outlets. Lawyer Leonard Bellavia, of Bellavia Gentile & Associates, who represents some of the terminated dealers, said he deposed Chrysler President Jim Press on Tuesday and came away with the impression that Press did not support the plan.

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

He added the government task force, which he criticized for having no members with retail experience was, in effect, attacking U.S. entrepreneurs. "What is the next task force? Shoe stores? Pizzerias?" Bellavia said at an event in Manhattan to publicize the dealers' concerns ahead of a bankruptcy court hearing.

Chrysler notified its dealers this month it plans to eliminate 25 percent of its retail showrooms and is seeking permission from a U.S. bankruptcy judge to terminate franchise agreements with 789 of 3,181 dealers as of June 9. A spokeswoman for Chrysler said the decision to cut a quarter of the dealers was "not coming from the task force." "Our position is that the market can't support the number of dealers that are out there," said spokeswoman Carrie McElwee.

"This has been our plan for more than 10 years to combine Chrysler, Dodge and Jeep under one roof." The decision about cutting dealers took into consideration factors like location, customer satisfaction, and sales potential, she said. Nearly half of the terminated dealers also carry non-Chrysler brands, and most rely on used vehicles for the bulk of their sales. The dealers will seek to stop the sale of Chrysler assets to a new company -- owned by its union, Italy's Fiat SpA (FIA.MI), and the U.S. government -- at the bankruptcy court hearing on Wednesday. "The problem we have is the free enterprise system is not run by the government, it's run by business entrepreneurs," Bellavia said. "The dealers themselves will decide if it's not
productive to go forward." Chrysler has more than double the number of dealers of rivals Toyota, Nissan and Honda, which each have about 1,200
retail outlets, while General Motors (GM.N) has about 6,000. But it should be up to owners to decide when to exit the business if there is not enough demand, Bellavia said. Dealers argue closing dealerships will devastate local
communities, with some 50,000 direct job losses nationwide, and as many as 200,000 indirect job losses. Part of their legal argument rests on the Fifth Amendment of the U.S. Constitution, which guarantees due process before government can take away a person's property. "We feel there has been a denial of constitutional due-process rights," Bellavia said. 'UNCONSTITUTIONAL' "I think it's unconstitutional," said Jim Anderer, owner of Island Jeep in Lindenhurst, New York. "The Fifth Amendment clearly states you cannot take another person's property without due process or compensation. Even in eminent domain, there is an appraised price on the property being taken by the state." Anderer said he has been in business for 22 years and employs 48 workers. He intends to fight the plan. "My business is being stolen from me under the guise of the bankruptcy laws, given to another dealer down the street," Anderer said. Chrysler has argued it needs a smaller dealer network to return to profitability. In 2008, it sold about 1 million new cars at some 3,300 dealers. "They've given me no time to sell off (my inventory)," said Robert Engel, who runs two dealerships in Tenafly and Wyckoff, New Jersey. Both dealerships, which employ about 60 people, are
profitable, he said. Engel estimates two-thirds of his dealership revenue comes from service, and said he intends to stay open. "Bankruptcy laws are being manipulated to carry out a marketing plan," he said. "If they're going to terminate dealers, it should only be severely underperforming dealers." Chrysler wants fewer but bigger dealers in central locations near highways that would carry Dodge, Chrysler and Jeep vehicles under one roof, Engel added, but the decision about who survives was "random" and set a precedent of government interference in free markets. "We're not giving up," Engel said.
Source: *GASP* Reuters (http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN2632731920090526)

[devildog]

Here's a a very detailed donation report. (http://www.scribd.com/doc/15760333/Chrysler-Report) It's super long, enjoy! :D

[Spang]

Here's a a very detaileddonation report. (http://www.scribd.com/doc/15760333/Chrysler-Report) It's super long, enjoy! :D

Yes, car dealers are more likely to donate to Republicans; 88% of them.

[sojourner]

Yes, car dealers are more likely to donate to Republicans; 88% of them.

So was the percentage of deals that lost their franchises higher or lower than88% ?

[devildog]

and here we thought Bush was vindictive! I seem to remember a little quote from a couple of months ago........."Don't think we're not keeping score brother."

Hmmmm

[Spang]

So was the percentage of deals that lost their franchises higher or lower than88% ?

92%

[sojourner]

92%

92% were dealers that contributed to the GOP? That would suggest there is some validity to the claim that there is payback going on.

[Spang]

92% were dealers that contributed to the GOP? That would suggest there is some validity to the claim that there is payback going on.

88% of car dealers donate to Republicans. Only 12% of car dealers donate to Democrats. Let me say it again, 88% of car dealers donate to Republicans. 12% of car dealers donate to Democrats. The majority of car dealers donate to Republicans. One more time. 88% (that's a majority) of car dealers donate to Republicans. 12% of car dealers donate to Democrats.

If 88% of the workforce in America were women, the majority of people getting laid off right now, would be women. Not because we've got something against women. Because the majority of the workforce in America are women; if that were the case. The reason the majority of Republican donating car dealers are being shut down, is because the majority of car dealers donate to Republicans.

Furthermore, if Chrysler had been a successful company, none of this would be happening right now.

[Alces95]

88% of car dealers donate to Republicans. Only 12% of car dealers donate to Democrats. Let me say it again, 88% of car dealers donate to Republicans. 12% of car dealers donate to Democrats. The majority of car dealers donate to Republicans. One more time. 88% (that's a majority) of car dealers donate to Republicans. 12% of car dealers donate to Democrats.

If 88% of the workforce in America were women, the majority of people getting laid off right now, would be women. Not because we've got something against women. Because the majority of the workforce in America are women; if that were the case. The reason the majority of Republican donating car dealers are being shut down, is because the majority of car dealers donate to Republicans.

Furthermore, if Chrysler had been a successful company, none of this would be happening right now.

Spang, forget it. Some folks are making the same mistake I did with Bush. Just because Obama did it, it must be bad. Regardless of whether it is or not.

First, these same folks were against the auto bailout entirely possibly causing the entire company to shutdown, now they are upset that a few had to close. (The could stay open but they would not be able to sell new cars or offer warrenties. They would need to find a new and solvent supplier or just sell used. It sounds better though to say Obama shut them down.)

Its easier to say - "Its Obama's fault!" So I will. "It's Obama's Fault! Chrysler and GM were doing just fine until Obama stepped in! When Bush left, they were not bankrupt!"
"In a free market, no one who is in business should fail; even if they are tied to a company and industry that is faultering! No Bailouts though because that removes moral hazard! But there shouldn't be any risk if you are making money! Its socialism I tell yea!""

Wow...that does feel good. Very cathartic. Its like I can create my own reality.


Sorry for the sarcasm but this country really needs independent thinkers. I get frustrated reading this forum sometimes when I see people whose contrubutions I normally respect and am interested in reading go off the deep end.

[sojourner]

88% of car dealers donate to Republicans. Only 12% of car dealers donate to Democrats. Let me say it again, 88% of car dealers donate to Republicans. 12% of car dealers donate to Democrats. The majority of car dealers donate to Republicans. One more time. 88% (that's a majority) of car dealers donate to Republicans. 12% of car dealers donate to Democrats.

If 88% of the workforce in America were women, the majority of people getting laid off right now, would be women. Not because we've got something against women. Because the majority of the workforce in America are women; if that were the case. The reason the majority of Republican donating car dealers are being shut down, is because the majority of car dealers donate to Republicans.

Furthermore, if Chrysler had been a successful company, none of this would be happening right now.

I understand all that.

If 88% of the dealers contributed to the GOP and dealerships were selected at random to be dropped, you would expect that 88% of the dealers that lost their franchises would be contributors to the GOP. If 92% of the dealers that lost their franchises contributed to the GOP that suggests that the dealerships were not picked at random and contributing to the GOP might be a factor.

The 4% difference could be by chance, but if enough car dealerships are involved it is easy to determine with reasonable certainty if that 4% difference is real and if it is something caused it and GOP contributions is one candidate. There are still other potential causes that would have to be eliminated. You could never prove it by looking at the numbers but you might be able to get to the point where there is a strong indication the GOP contributions played a part. Then you would have to get lawyers involved and start looking through emails and other documents to get at the truth.

[Spang]

I understand all that.

If 88% of the dealers contributed to the GOP and dealerships were selected at random to be dropped, you would expect that 88% of the dealers that lost their franchises would be contributors to the GOP. If 92% of the dealers that lost their franchises contributed to the GOP that suggests that the dealerships were not picked at random and contributing to the GOP might be a factor.

The 4% difference could be by chance, but if enough car dealerships are involved it is easy to determine with reasonable certainty if that 4% difference is real and if it is something caused it and GOP contributions is one candidate. There are still other potential causes that would have to be eliminated. You could never prove it by looking at the numbers but you might be able to get to the point where there is a strong indication the GOP contributions played a part. Then you would have to get lawyers involved and start looking through emails and other documents to get at the truth.

I guess we could waste our time and money and do all that but I'm not going to. I've already figured it out, without a lawyer.

[sojourner]

I guess we could waste our time and money and do all that but I'm not going to. I've already figured it out, without a lawyer.

Me neither. I was just trying to define the issue a little finer. But if a group of dealers decided that was the reason they were dropped, they might get together and use this approach as a starting point.

I haven't figured it out, but I think it would be tough to base a case on a 4% difference.

[Spang]

GM to reverse closing of 41 dealerships

Washington -- General Motors Corp. has agreed to reverse its decision to close 41 of the 2,100 dealerships it plans to shutter in bankruptcy, as pressure mounts on automakers to do more for their dealers.

A group of influential members of Congress, including House Majority Leader Steny Hoyer, D-Md., introduced a bill this week to try to force GM and Chrysler Group LLC to keep dealers open.

On Tuesday, a federal bankruptcy judge agreed to allow Chrysler to close about 25 percent of its nearly 3,200 dealerships -- or 789. Hoyer acknowledged that it is unclear if Congress would be able to force the reopening of those dealerships.

As of Tuesday, GM had reversed itself in 15 cases. It has now heard hundreds of appeals from closing dealers, and changed its position on 41. GM expects to have between 3,500 and 3,800 dealers by the end of 2010, compared to about 6,200 today.

On Friday, a House Energy and Commerce subcommittee chaired by Rep. Bart Stupak, D-Menominee, will hold a hearing on the closing dealerships and will hear from GM CEO Fritz Henderson and Chrysler President James Press.

GM has done far more for dealers than Chrysler, which had no appeal process, reversed no closing decisions, gave dealers no money and ordered them to close in 26 days. It did agree to give dealers until June 15 to transfer their unsold inventory to other dealers at basically the same price they paid.

The bill, called the Automobile Dealer Economic Rights Restoration Act of 2009, would restore the economic rights of automobile dealers to protect jobs, workers and small-business owners. It has 40 House co-sponsors, including Rep. Thaddeus McCotter, R-Livonia.

Local car dealerships employ hundreds of thousands of Americans, contribute to vibrant local economies all across our country, and are key to putting the American auto industry back on top," said Rep. Chris Van Hollen, D-Md.

Hoyer said he had spoken to the White House's auto task force, and it acknowledged that the automakers will see no immediate cost savings from closings dealers.

Hoyer said Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, would consider the bill in the coming weeks. Frank is also a co-sponsor.

"This legislation says that the dealers' contracts should be honored, and any closings should be done in accordance with those contracts and state law," Hoyer said.

Sen. Bob Corker, R-Tenn., has a separate bill that would make closing dealers financially whole by forcing automakers to buy back unsold parts and inventory.

Ron Bloom, an auto adviser to President Barack Obama, said "the list of victims of a failed corporation is very wide." But he emphasized that "these are not (the government's) decision."

The National Automobile Dealers Association strongly endorsed the bill, saying the way Chrysler closed its dealers was "unconscionable."

"The truth of the matter is that closing dealerships will not make either General Motors or Chrysler more viable," NADA said in statement. "These closings are unnecessary and wrong."

The Source (http://www.detnews.com/article/20090611/AUTO01/906110370/1148/GM-to-reverse-closing-of-41-dealerships)

[sojourner]

I still want to know how shutting down independently owned franchises saves the manufacturers money?

I heard or read an explanation that said auto manufacturers could maintain a higher sales price if they limited the number of dealerships. It makes sense that the dealers could sell cars at a higher price if the number of dealerships was limited. I am not sure how that helps the manufacturer.