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Many auto dealers extremely nervous about Obama controlling manufacturers.

Dargo

Dargo

Like a bad penny...
Stuff like this just makes me cringe Obama tells Chrysler how much to spend on advertising. I've heard this so many times by so many dealers that it's unreal yet true. Exactly what makes Obama now the expert on how to run auto manufacturing factories? It's literally getting down to the individual dealership level as many Chrysler and Dodge dealers will learn this coming Thursday if the Obama administration is going to have their franchise pulled from them!

Think about it. I'm sitting with a 3rd generation dealer earlier this week and he literally is extremely worried that the Obama administration is going to have his dealership on a "terminate" list after his family has owned the business for nearly 60 years. GM dealers are in the same position and several learned yesterday that their franchise is going to be pulled from them and they may not be paid for warranty work that they have already performed but have not yet been reimbursed for by the manufacturer. In the last 45 days I've lost 6 franchised dealerships that my company has done business with because they either had to close their doors due to losing money or have been told that their franchise agreement is being terminated.

In a nutshell, the rule of thumb is any GM or Chrysler or Dodge dealership that sells less than an average of ten new vehicles a month will get the axe. I'm seeing families and business owners devistated by this. Just when they think they have finances in order to weather this recession they get this bomb dropped on them. Does anyone else see a problem with the Obama administration, for all intents and purposes, taking over our domestic auto manufacturers? When you think about that, remember how many suppliers and other people are going to lose their jobs because of this. How can even the most blind liberal not have a problem with their messiah destroying a huge part of what we have all known our entire lifes as American's love of their automobiles and pride in our domestic products?
 
As a quick follow up to the previous post, I just opened an industry specific magazine I receive called Automotive News (the most dealer read magazine in the country talking about all things related to auto dealerships) and I see these headlines:

Automakers can't slash production fast enough

Old vehicles clog dealer lots

Industry on the brink

Chrysler residual values immediately dropped 6% by Blue Book

Feds push for drastic reduction in number of auto dealers

A helpless feeling: GM dealers await their fate

Fed' supplier support program flops

GM will kill 5 models this year

Toyota reports first loss, predicts worse is to come

Gee, it sure looks like the savior Obama is really helping one of the largest and most important manufacturing industries in our country.
 
Feds push for drastic reduction in the number of auto dealers​

Why would the federal government care how many dealerships exist? What business is if of theirs anyway? Seems to me that the more dealerships the better the service, the more the competition, the more people employed, the more people serviced, etc.

Seems to me that by cutting the number of dealers he is restricting competition, which may raise prices, make cars more expensive and therefore less affordable, reduce service quality, reduce the number of jobs provided by the dealers, and ultimately allow non-government controlled brands to branch out and fill in the gaps that the consumers demand be filled!!!

So basically he is trying domestic 'protectionism' of the GM and Chrysler companies but that would be doomed to fail as more foreign car dealerships and independent car lots (like CarMax) take over some of the closed dealerships.
 
Dargo, its the Golden Rule. He with the gold, rules.

The companies are effectively bankrupt and no equity (ownership) remains in the hands of the investors. If the government is putting up all the funds to keep these empty shells afloat, then it makes all the rules.

Did you see where six top GM execs sold all their equity today? As I recall they received $300,000. For the entire stake held by all six.

messiah destroying a huge part of what we have all known our entire lifes as American's love of their automobiles and pride in our domestic products
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Huh? He did all that in one hundred days??? Are you overlooking that the Titanic was already standing on its nose and sinking fast when Obama was sworn in?

What are you proposing? That someone (taxpayers??) need to do something to save this important cultural icon? Why? If the cars were any good then the manufacturers would be self supporting and wouldn't be asking for bailouts. They have been sheltered from foreign competition for years by various import tariffs etc and that protection still didn't make them competitive. Now the dinosaurs are dying off. It's sad, but as a taxpayer I don't want to support subsidies to the manufacturers that become direct rebates to customers because they can't afford to sell the cars for what it cost to build them.

It looks to me like the best alternative among several bad alternatives for GM is a managed bankruptcy like Chrysler's, where the assets are sold mostly intact to Fiat or somebody who will preserve as much of the treasured cultural icon as is consistent with making money. I don't see any better alternatives.

Bob, I think the strategy is to clean up the companies as much as possible for a neater sale. I don't think there is a buyer for the whole package so defining individual components to sell is a step in liquidating the mess.

If carfax can buy a dealership for more than the hometown boys will pay, they must be expecting to run it more efficiently.
 
Toyota dealers have always done better the GM dealers for the simple fact that they aren't in every town like chevy dealers are. So a Toyota dealership will sell many more cars and make more money then your typical chevy dealership. Gm supposedly is trying to make the dealer network that is left to be profitable. That is what they claim anyway. I have a feeling our little chevy dealer will be gone. We also have a pontiac/gmc/buick dealer too. I assume he will stay in business as just a gmc/buick dealer. I would much rather see the chevy dealer stay but i don't think he will have any say-so in it. We also have a ford/chrysler/dodge dealership that i'm pretty sure doesn't sell 10 cars a month. He never has much stock and what he does have seems the same week after week. I don't see chrysler making it thru this. Fiat has nothing to offer if u look at what cars they produce. It is gonna be really hard for GM to survive i think. Ford cheapens everything they make more and more each year. They have pretty much eliminated side moldings on a car. You can't even pay extra and get them on some models as the new 2010 fusian. Get on the internet and build/price a new dodge. You get what model u want (say a challenger se)and they have pretty much eliminated a lot of the options. U take the whole package with that model and like it. I used to feel sorry for the manufacturers, but not now. They dug themselves a very deep hole and i don't think we should bail them out. And yes i do have the right to complain. I have bought 8 new cars over the years....6 chevys, 1 mercury, and 1 dodge. Never thought i would say this , but my next new car will most likely be a new kia or hyundai and my next truck could very well be a toyota or even a nissan.
 
We live in a society where, before now, the market and economic conditions have set the market; set the price, set the volume, set the number of sellers and even set the allowable profit margins. You now have people who have zero experience or knowledge of this industry at the controls. It is a recipe for disaster. There is absolutely no justifiable reason the complete moron in the office of the presidency and his henchmen should be able to tell people who have invested their entire lives that they are done. If they were wise enough to have enough money to weather this recession it is insane to allow the government tell them if they can continue or not. This disaster and mistake of a president is on the ultimate power trip that is certainly going to change the face of our country for the worse. There is no doubt that generations of people will not only hate this fool but generations to come will be paying for his mistakes.
 
Dargo said:
We live in a society where, before now, the market and economic conditions have set the market; set the price, set the volume, set the number of sellers and even set the allowable profit margins. You now have people who have zero experience or knowledge of this industry at the controls. It is a recipe for disaster.
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That is EXACTLY the point I was trying to make, in a round about way, with my earlier post.
 
Dargo said:
We live in a society where, before now, the market and economic conditions have set the market; set the price, set the volume, set the number of sellers and even set the allowable profit margins. You now have people who have zero experience or knowledge of this industry at the controls. It is a recipe for disaster. There is absolutely no justifiable reason the complete moron in the office of the presidency and his henchmen should be able to tell people who have invested their entire lives that they are done. If they were wise enough to have enough money to weather this recession it is insane to allow the government tell them if they can continue or not. This disaster and mistake of a president is on the ultimate power trip that is certainly going to change the face of our country for the worse. There is no doubt that generations of people will not only hate this fool but generations to come will be paying for his mistakes.
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You now have people who have zero experience or knowledge of this industry at the controls. I agree

It is a recipe for disaster Just an ingredient, the manufacturers made the recipe.

There is absolutely no justifiable reason the complete moron in the office of the presidency and his henchmen should be able to tell people who have invested their entire lives that they are done. There is one reason "money" when someone invests good money in a product (almost bankrupt) they want some control. Without the government money there would be 0 dealers

This disaster and mistake of a president is on the ultimate power trip that is certainly going to change the face of our country for the worse. I agree, the billions invested/lost will be his legacy.

There is no doubt that generations of people will not only hate this fool but generations to come will be paying for his mistakes. Same answer as above.
 
I just drove away from the dealership Tuesday evening with our new Grand Caravan, and now two days later they are on the list of dealerships to be closed. :shock:
 
AndyM said:
I just drove away from the dealership Tuesday evening with our new Grand Caravan, and now two days later they are on the list of dealerships to be closed. :shock:
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Too bad you aren't on welfare and living in Mass... you could have gotten it free.
 
A area dealership that has a few of the GM lines and Dodge/Chrysler just lost his Dodge/Chrysler/Plymouth dealership. He still has GM but I wonder if he will even keep that. About 5 years ago GM was trying to force him to build out on the main highway. I bet he is glad he didn't. For the people in the area that means they have to drive 40 miles to get work done. I think this is another stab for the small towns.


murph
 
They are forcing a local jeep dealer to close who has been around since I was a child. Was only about 14 years ago they pushed him to expand and carry plymouth cars and dodge trucks. Now they toss him out!
 
Yesterday six Chrysler dealers in my local area got the news that the axe was hitting them in the head. Some had just made major renovations as required by Chrysler. Four of the six are dealerships that do business with my company. Starting today GM dealers will begin seeing their pink slips. The sad thing is that I suspect several of the Chrysler dealers that also had GM franchises will get hit again.
 
with fewer dealers of any certain make and model you can not drive to the other side of town and get a deal, you pay this price here or you do what I did.................drove to KIA, bought 2 cars same day with 100k warranty, that includes, loaner car, towing, flat tire for life, discounts on NON warranty work...........we get 14.95 oil and tire rotation with top of all fluids. It is 100%, if the air goes out, costs me nothing more, motor, same, drive train, nothing more..............

and they drive nice too!

oh the ford dealer is 300 yards down the road, toyota in the middle of them...........
 
i dont think its about a car being good or not. its is as i see it about people not having the money to spend, and banks not lending the rest the money to buy, and another group afraid to buy, not sure if they will have a job next month or six months down the road.sure some brands are better than others(i drive a buick but am also a ford truck man) i think the catch is what will happen to us down the road
 
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