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Originally Posted by Dravin
I'm still gonna need a citation that the government is forcing dealerships closed. I'm also not entirely sure of what you are trying to say.
A) Banks taking money were somehow forced to close dealerships (which they can't do, though I suppose they could demand payment of debt right now).
 It was part of the bankruptcy and bailout terms for the auto companies to shape up (aka, no money unless you actually try to make a profit so nix the licenses).
C) It was part of the bankruptcy terms and completely and utterly random with no motivation such as trying to steer said companies out of bankruptcy (Its not going to affect your bottom line, but death to dealerships, kill the licenses).
D) Something entirely different.
Neither B nor C fit the bill (not even A really). Unless you are a company owned dealership no matter what pressure the government puts on an auto company they cannot shut you down. And banks don't have the power to shut you down, they can demand you pay them in full as per any loans you've taken out and not give you any wiggle room but that is not the government shutting you down. |
In some ways, you are right.The government has not stated that they want to close dealerships, but revoke franchise rights to some dealerships.
What you don't seem to acknowledge is that in the letter to revoke these franchise rights, they were given two options. Sell the inventory that you currently have on hand, to another dealership, at less than what you payed for it or sell your inventory with out franchise rights and there for no warranty.
Neither option states that the government is shutting dealerships down but the result is the same. In fact, you could say that it is Chrysler and G.M. that are setting off this chain reaction, if you wanted to strech.
By the way, one reason that you don't hear to much about this is because of the gag order that is being put on all dealerships at this time, not allowing you to hear much.
I first head about how these dealerships were being closed on the Glen Beck show and wanted to make sure that it was not being exaggerated, so I talked to friends of mine in the auto industry, who worked for dealerships who were not closing, and only one would tell me what he know was going on. He/she (this person doesn't what to recognized) said that in the meeting that he/she attended, they were not suppose to talk about why they could sell at such a great price.
Hey, we all see what we want to see, but eventually,just like 10% unemployment, we all see the elephant in the room.