Quote:
Originally Posted by Dravin
Source?
I've heard of various car companies refusing to renew contracts* with licensed dealerships in an effort to save money and possibly thin the heard to allow the more successful ones to succeed. You don't want to discuss if such is a good business decision or not, which is fine (so I won't) , but all I've heard is the companies not renewing contracts which they are free to do. I've not heard of a single government forced closure of a dealership (ones caught doing illegal things don't really count for your complaint), which is not to say they couldn't have happened but I'm just not ware of it.
So basically to cut to the chase, can you provide a cite where you are getting the information that the government is coming around and shutting down dealerships?
*This is not the same as closing a dealer, you just don't get the special deal on X brand anymore and the marketing aspect Random Joe's Ford/Lincoln/Mercury and what not. You can still sell cars and as long as you can sell enough of them at a high enough profit you can keep your doors open.
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It is part of the Federal Bankruptcy terms and acceptance of TARP money, not from the actual automotive manufactures with closures of plants and dealership. Bringing another instance of government heavy handed rule, even medium to large banks, which revealed no losses as to BofA and Citibank faced were told to take TARP money. This is a known fact in the industry, as there are misgiving trusts in having government look over the shoulder or telling them on to loan money.
Success of the industry is to allow them to make their own decision. Do not forget, even Toyota and Honda have taken Japanese TARP money to keep them afloat during this crisis.
