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House wants Auto Dealerships reinstated


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Can anyone explain why independent dealerships cost car manufacturer's money?

 

CHECK IT

 

That's an easy one.

 

http://www.wnd.com/index.php?fa=PAGE.view&pageId=99325

 

But WND reviewed the list of 789 closing franchises and databases of political donors and found that of dealership majority owners making contributions in the November 2008 election, less than 10 percent gifted to Democrats while 90 percent gave substantial sums to Republican candidates.

 

The listed franchise owners contributed at least $450,000 to Republican presidential candidates and the GOP, while only $7,970 was donated to Sen. Hillary Clinton's campaign and $2,200 was given to Sen. John Edwards' campaign.

 

Obama received a combined total of only $450 in donations – $250 from dealer Jane Baldock in Wenatchee, Wash., and $200 from Waco, Texas, dealer Jeffrey Hunter.

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Can anyone explain why independent dealerships cost car manufacturer's money?

 

Funny. Someone just mentioned this to me too. I have no idea how people get paid in the car mfg/dealer model. If the dealer buys the car from the mfg, I can't see the advantage to the mfg in cutting dealerships.

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Funny. Someone just mentioned this to me too. I have no idea how people get paid in the car mfg/dealer model. If the dealer buys the car from the mfg, I can't see the advantage to the mfg in cutting dealerships.

 

The answer I found here seems a bit odd. Essentially, it seems (well what the article contends) that they have contracts with these dealers. The contracts may call for them to produce a certain type of car. This may be a type of car they want to phase out. The cost savings would come from making fewer types of cars.

 

I am not sure I buy that though. First off the article itself is very fuzzy on the whole issue. Second, people asked very reasonable questions about the article and the author never responded.

 

Edit - On further thought I removed my comment about amending contracts. If you cut scale you can't have a dealer turn into another type of dealer in an already morbid sales period.

 

This brings up a host of questions:

 

  • How was the decision made as to which dealerships to close?
  • What dealerships are closed and what types of dealerships were they?
  • What types of cars are going to be phased out?
  • Do they amend the contracts of the remaining dealers to carry other types of cars?

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Yeah, this is going to work just GREAT.

 

Tighten your belt...and keep 3,000 dealerships on the dole.

Tighten your belt...and don't lay anyone off.

Tighten your belt...and sell cars at a loss.

 

 

 

 

 

 

 

http://online.wsj.com/article/SB1247798522...icle-outset-box

 

I agree JA... Kinda like fighting a war and still letting everyone "shop till they drop". NObody wants to make the hard choices.

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On the bright side, they'll no longer be EEEEEEVILLLLLL corporations, since they'll never make any more money again.

 

Well... Hmmm... They are EEEEEEVILLLLLL if they (the dealerships) open them back up with the green light from the gov't. Why would they open them up? The dealerships know what is good for them and the auto makers.

 

Even if they are "forced"... Don't they have good business sense to tell the gov't to phuck off?

 

The Chrysler I bought in 2006 was from a dealership that is losing the right to sell Jeep/Chrysler products (also do warranty work)... Not a problem because it is the owner's secondary location outside of his bigger dealership (farther from my home in Oak Lawn, IL)... Just his SECOND Jeep/Chrysler dealership in Orland Park, IL go the "ax." I heard from the cashier when I asked about it: "Mr. Mancari isn't too happy." Why is that?

 

Am I missing something here? Besides your obvious answer of a brain... :wallbash:

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Well... Hmmm... They are EEEEEEVILLLLLL if they (the dealerships) open them back up with the green light from the gov't. Why would they open them up? The dealerships know what is good for them and the auto makers.

 

Even if they are "forced"... Don't they have good business sense to tell the gov't to phuck off?

 

The Chrysler I bought in 2006 was from a dealership that is losing the right to sell Jeep/Chrysler products (also do warranty work)... Not a problem because it is the owner's secondary location outside of his bigger dealership (farther from my home in Oak Lawn, IL)... Just his SECOND Jeep/Chrysler dealership in Orland Park, IL go the "ax." I heard from the cashier when I asked about it: "Mr. Mancari isn't too happy." Why is that?

 

Am I missing something here? Besides your obvious answer of a brain... :thumbsup:

 

The dealer probably gave to republicans. The vast majority of dealers cut were ones that gave to $ to republicans.

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The dealer probably gave to republicans. The vast majority of dealers cut were ones that gave to $ to republicans.

Cry me a river.

 

Yet... He has TWO Chrysler/Jeep dealerships within 20 miles of each other. Now I know this is IL... Slack NYS all you want, but is that even legal within some states?

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Why not. It's free enterprise (until Obama gets rid of that- looks like he already is in the process).

 

Actually I found out that the dealer has THREE of the same dealerships in Illinois all within about 60 miles total. Probably more of a product of the dealership laws in Illinois (and other states) that caused some of these problems. Sure it is "free enterprise", yet dealers like this (and the automakers granting them dealerships with regards to what state laws are) caused their own problems. There is no reason why he should be "not happy about the decision." It takes two to tango. Greed and "free enterprise" is very much at the root. Too many heads at the same trough.

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Can anyone explain why independent dealerships cost car manufacturer's money?

 

I don't believe that it's a direct link. But when you count the advertising and financing costs that accumulate over a dealer network that can't support your sales, nor having the ability to directly manage the dealer relationships, it all adds up to lost profitability for the manufacturer.

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The dealer probably gave to republicans. The vast majority of dealers cut were ones that gave to $ to republicans.

 

I'm as eager to think the worst of these clowns as the next guy, but let's put this to rest *until* somebody shows that it is significantly at odds with the statistics overall. Anecdotal info suggests that dealers as a whole are disporportionately republican donors. Has anybody done the grunt-work and checked it out?

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