Hi Billy,
On May 20, 2009, at 7:33 PM, [email protected] wrote:
WTH ?
Are the people at Chrysler out of their minds ?
No, they're bankrupt. The problem is that Chrysler has too many
dealers to ever maintain decent market prices, and thus they need to
consolidate if they're ever going to recover. Economists have known
for years that any long-term solution to the American auto industry
involved shutting down "excess" dealerships:
http://www.autoblog.com/2007/06/18/excess-dealers-costing-big-3-436-per-vehicle-in-extra-costs/
The dealers (obviously) didn't want to lose their investment, and so
kept delaying the day of reckoning. The end result is things like
this. :-(
Now, the details sound unusually harsh, but then again this is only
one side of the story.
HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF
AMERICA?
This comment in particular about the "free market" is more than a
little ironic, since for a long time dealers had local monopolies:
http://www.reason.com/news/show/36050.html
In a truly free market, most car dealers would long since have been
dis-intermediated by Amazon and eBay, or replaced by Best-Buy style
megastores.
He who lives by arbitrary patronage often dies by arbitrary patronage.
-- Ernie P.
Billy
-------------------------------------------------
In a message dated 5/20/2009 1:58:43 P.M. Pacific Daylight Time, [email protected]
writes:
http://www.americanthinker.com/blog/2009/05/letter_from_a_dodge_dealer.html
Letter from a Dodge dealer
letter to the editor
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
- Looks like the real thing to me.
http://www.sunshinedodgeisuzu.com/staff.html
-Another "evil" businessman gets what he deserves?
// Lennart
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