Now I know that sometimes my memory doesn't serve me very well. Sometimes it's the multiple conversations I have going on at once. Sometimes it's the Amber Bock I had the previous evening. Sometimes it's because I just don't pay attention. Regardless of the causes, the effect remains the same. Sometimes I just do not recall things how they actually happened. We all have that now and again. We are all human after all.
When the big 3 auto makers began to announce staggering quarterly losses it was a cause for concern. I thought I was paying attention to what was happening. Loss of domestic sales to import auto makers who were making smaller, more affordable, eco-friendly vehicles seemed to be the battle cry. "No wonder they aren't making money. No one in this day and age of skyrocketing gas prices and eco-friendly living wants those big ol' SUV's." And it seemed to make sense. The planet, and public opinion is changing. What the big 3 need to do is to produce the vehicles that America is wanting to buy.
As time passed it became obvious that they didn't listen. Well, at least 2 of them didn't. Despite the converted hybrid vehicles GM was making out of it's current fleet, it needed help. Chrysler, i'm not even sure what they were doing, was also at rock bottom and considering selling to Italian car company Fiat, who until that point, no one knew existed anymore. And so along came the government. The bailout barrage would continue, they told us. We cannot let the American auto industry fail. So it is said, so it shall come to pass. The government has GM and Chrysler.
President Obama made a trip to the podium to re-assure the American people that GM and Chrysler would be fine. They would restructure thier business model to one that would be more gas and eco-friendly, and with the help of the government, would live long and healthy lives. It was of course, the cars that they were producing that was the problem. No one wanted to buy them. They would have to re-structure thier production model to get with the times and stop producing the large SUV's that no one wanted anymore.
Great. Now we are on the right track. No one wanted the cars so they will make new models people want. Makes sense right? No sales equals bad product. Cool, so what is the first step in changing production...........CLOSING INDEPENDENTLY OWNED DEALERSHIPS??????????
Now, I don't claim to be a genius nor do I claim to know all about business and auto production, but what the hell does a dealer have to do with the production of vehicles? Here is what I DO know: Dealerships are NOT cost centers. They cost the manufacturer NOTHING. They are independently owned companies that actually purchase the vehicles from the manufacturer. They also pay franchising fees to the manufacturer for the right to buy thier vehicles and sell them to the public. They are the SOLE CENTER OF PROFIT for the manufacturer. Not only do they purchase the vehicles from the manufacturer, they also purchase parts from distributors around the country so that they may service the vehicles they buy from the manufacturer.
So what is the answer to save GM and Chrysler? Apparently it is to tell the dealerships that thier franchise agreements will not be renewed. Sounds like a far cry from what I remember the problem was when this was first being sold to the American public. Lets see if I am getting this correct shall we? first, we will close over 3000 auto dealerships that purchase the vehicles and sell them to the public making it more difficult to find the product. Next we will slash our advertising budget in half so that it is harder to tell people where to find the product, which is now sold in less locations than before. Third, we will force many parts maufacturing and distribution plants to close down because they no longer have any dealers to buy thier parts. Sounds like a solid plan for a problem that we were told was a manufacturing issue. Sarcasm, I know.
So if you have survived reading this to this point I want to ask a question: Hoe does this fix the issue we were sold at the beginning of all this? What part of this changes manufacturing? How will closing independent dealerships help GM build a better vehicle? Hopefully someone has an answer. If they don't, the American auto industry will be but a memory.
|
|
| |
|
|
They must have read my
blog----------------------------------------------
---------------------------
Dems express 'growing concern'
By AMIE PARNES
House Majority Leader Steny H. Hoyer and Reps. Chris Van Hollen and Daniel Maffei have circulated this letter today ...
... to Obama expressing “growing concern” with the closures of GM and Chrysler dealerships across the country. The lawmakers say they’re asking for a “compelling justification as to how closing healthy dealerships will make the automakers more financially sound. The lawmakers are asking for lawmakers to sign this letter by 5p.m. today.
Full letter below:
Dear President Obama:
We are writing to express our concerns about General Motors’ and Chrysler’s decision to close profitable automobile dealerships across the country, and urge you to ask GM and Chrysler to delay final action on proposed closures pending further review of the decision to consolidate dealerships and the process by which Chrysler and GM selected the dealerships to close.
Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. Furthermore, we believe car dealers will be key players in any effort to revive the American auto industry.
We believe the dealerships are one of the auto industry’s key sources of strength and the manufacturers should continue to honor their agreements and contracts. The dealerships, and their more than 1 million employees, form personal relationships with customers that often contribute to brand loyalty and will be key to General Motors’ and Chrysler’s recovery following this economic downturn. While we understand the desire to reduce the number of unprofitable dealerships, no one has yet sufficiently explained the need to close profitable dealerships.
We recognize that efforts by your Auto Task Force prevented the total liquidation of General Motors and Chrysler, as well as their dealership networks. We commend your efforts to help these businesses survive these challenging economic times.
However, we are concerned that manufacturers are closing profitable dealerships to circumvent current contracts which could require expensive buy-outs under normal conditions. We are also concerned about allegations that dealers that have previously stood up for their rights against the manufacturers are being targeted by these closures. We believe that the forced closures of profitable dealerships needs to be scrutinized by the Task Force to prevent additional future financial loses to General Motors and Chrysler and job loses across the United States
We may consider legislative proposals to ensure that dealers and their employees are treated fairly, and we look forward to your timely response.
Ok, so now Congress is only 3 weeks behind me!
LOL.----------------------------------------------
--------------------------------------------------
U.S. Lawmakers Fight Closing of Nearly 2,000 Car Dealerships
As top auto executives prepare to announce plans to close nearly 2,000 dealerships before a Senate committee Wednesday, lawmakers are gearing up for a fight -- arguing the closures put over 100,000 jobs at risk and do little to offer savings to GM or Chrysler.
FOXNews.com
Wednesday, June 03, 2009
1 x
in order to recommend a story, you must login or register.
63 Comments | Add Comment
ShareThisPhotos
May 28, 2009: Cars are lined up for sale at a GM Dealership in Los Gatos, Calif (AP).
PEOPLE WHO READ THIS...
Also read these stories:
Obama Accused Bill Clinton of Telling 'Bald-Faced Lies,' Reporter Says in Book
[2009-06-02]
reporter obama accused bill clinton of lying, obama, clinton, reporters, bill
1996 visitors also liked this.
Biden Reveals Location of Secret VP Bunker
[2009-05-18]
biden reveals secret bunker location, biden reveals location of secret vp bunker, biden, biden reveals location of supersecret 9/11 bunker, 9/11
4805 visitors also liked this.
Tenth Amendment Movement Aims to Give Power Back to the States
[2009-05-26]
fedup states want power back, movement aims to give power back to the states, tenth amendment movement aims to give power back to the states, »tenth amendment movement aims to give power back to the states, fox forum obama declares war on gun owners
2597 visitors also liked this.
Comedian Wanda Sykes Draws Fire With Cracks About Rush Limbaugh's Health, Patriotism
[2009-05-11]
sykes joke uproar, comedian wanda sykes draws fire with cracks about rush limbaugh's health patriotism, sykes, wanda sykes on limbaugh 'hope his kidney's fail', wanda
3451 visitors also liked this.
Burris Relegated to Outcast Status on Capitol Hill
[2009-06-01]
burris relegated to outcast status on capitol hill, burris, politics, obama to name gop congressman as army sec'y, obama
1023 visitors also liked this.
powered by BaynoteCar dealerships could soon become the kind of political cause military bases were just a few years ago.
U.S. lawmakers are battling to prevent hundreds of General Motors and Chrysler dealerships in their districts from closing -- a struggle similar to past fights among lawmakers to prevent military facilities in their states from shutting down.
As top auto executives announced plans to close nearly 2,000 dealerships before a Senate committee Wednesday, lawmakers voiced strong opposition to the move -- arguing the closures put over 100,000 jobs at risk and do little to offer savings to GM or Chrysler.
"I see no winners from government-imposed decisions to end new car dealer franchises," Rep. Roscoe Bartlett, R-Md., told FOXNews.com Wednesday. "It won't help Chrysler become more viable to cut their primary revenue source."
Bartlett, who rallied with members of the Maryland Automobile Dealers Association Tuesday to protest the closings, said they will eliminate "more than 100,000 jobs at profitable independent dealers" and will "raise costs for consumers."
The chiefs of General Motors and Chrysler told Congress Wednesday they have too many dealers to support their slimmed down operations and sacrifices must be shared as they fight to overcome bankruptcy and survive -- though they acknowledged that slashing dealerships is causing pain in communities around the country.
GM is aiming for "fewer, stronger brands as well as fewer, stronger dealers," GM President Fritz Henderson said in testimony prepared for the Senate Commerce Committee. "These are tough times for everyone in the GM family."
Chrysler President James Press told the panel in prepared remarks: "Poor performing dealers cost us customers...If they don't sell cars, we don't either."
Democratic Sen. Jay Rockefeller, chairman of the Senate Commerce Committee, also opposes the plans, saying the closures will have damaging consequences.
"I don't believe that companies should be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real notice and no real help," Rockefeller said during opening testimony Wednesday.
Chrysler has identified 789 dealerships that it plans to close next week, about a quarter of the company's dealership network. And General Motors Corp. told 1,100 dealerships that it does not plan to renew their franchise agreements in late 2010 and expects to shed another 900 dealerships through attrition and by selling or discontinuing its Hummer, Pontiac, Saab and Saturn brands.
"That is just plain wrong," said Rockefeller. "Each company has a responsibility to assure this committee that it is not using this restructuring process as a way to unfairly increase prices on hardworking Americans who have remained loyal to our domestic auto industry."
The senator said Chrysler will eliminate 40 percent of its dealerships in Rockefeller's home state of West Virginia -- and GM is expected to eliminate more than 30 percent.
"We are talking about dealers who have invested everything they have in their dealerships, people who have contributed to their communities, and whose families in many cases have been selling automobiles for decades," he said.
Lawmakers faced a similar battle in 2005 when members of Congress scrambled to prevent hundreds of military installations from closing in their districts -- an effort by the Defense Department to produce a net savings of $48 billion over 20 years.
Henderson and Press testified before the committee along with several dealers being forced to close. Car dealers are a potent political force, contributing more than $9 million to federal candidates for the 2008 elections.
GM and Chrysler have said the dealership reductions are a painful part of their restructuring, which also has required concessions from union workers and bondholders. Seeking to address the concerns, Troy Clarke, president of GM's North American operations, and Press met with committee members before the hearing.
Discontinued Chrysler dealerships have resold or redistributed about 90 percent of their vehicle inventory and parts through a company program, spokeswoman Lisa Barrow said. GM's plan was designed to help dealerships slowly wind down their businesses.
But car dealers want the Obama administration to give shuttered Chrysler dealers more time to close their franchises and provide additional financing to help Chrysler buy back inventories, parts and specialized tools from the dealerships.
The request creates a potential conflict for the White House, which has said it will refrain from running the day-to-day operations of the companies and delegate those decisions to the auto companies' management. The government is expected to receive a 60 percent stake in GM and a 10 percent share of Chrysler in exchange for the federal aid.
Sen. Byron Dorgan, D-N.D., who met with the GM and Chrysler executives on Tuesday, said Congress would not try to "go through the administration to get them to do something in the companies."
But Dorgan said it was reasonable for the lawmakers to ask Chrysler: "Are you sure you're making the right decision in the way you treat these kinds of dealers in certain rural areas?"
The Associated Press contributed to this report.
smashey- please run for congress- oh wait you make too much sense....
very interesting blog Smashey. Makes one wonder, I knew all along that the auto bailout was actually a union bailout.
And it would have saved us however many billions they took in bailout funds. Makes me want to buy a Ford. They are the only smart ones in the bunch.
Yup....... Bankrupcy would have been far more responsible.
They should have filed for bakruptcy when this all started. They will have to anyway, but at that point will have wasted billions of taxpayer funds and lost more jobs than they would have prior. All of this mind you, with a government appointed CEO at the helm of GM. Taking the TARP was the beginning of the end.
It's a great way to globalize and loose what auto buisness we had. Yaaaa weaken the US even more.
FAKT: Those who believe the government is the answer no pay attention to anything. www.drinkthekoolaid.com/tinyurl
One of my best friends found out on Friday they were closing the plant he works at down. They make parts for Chrysler. This master 'plan' has done nothing but more damage and the bankruptcies will still happen. They would have been better off filing months ago like many on this site stated. Anyone still think the government has the answers?
And the very fact they are going to import cars from China to help save the company how does that help the companies??? This is a hoax. And it will hurt many small towns across America.
And let's not forget that even after the billions in bailout funds it appears as if bankruptcy will happen anyway. So where did the billions go?
|
|
<< Home