In an effort to make it appear they are doing something GM & Chrysler are going to terminate the contracts of approximately 3000 dealerships. Gm wants to trim from 6200 to 3200 by the end of 2009. So that would be a total of 4000 dealerships, who will have their contracts terminated. It is estimated with one swoop 200,000 will lose their jobs, plus another 70,000 by the end of the year. This really is a smoke and mirrors move by them, terminating dealerships contracts does nothing financially for GM because they don't own them.......they just lease cars out to them for sale. All the expenses are born by the dealership. Looks good though.................I'm sure the Obama will applaud the move.......this is what he asked for...................more restructuring before the Messiah gives them more money Okay here goes: Where are the damn concessions from the Union?????? Being compensated 30% more on average then other manufacturers means nothing???? These people are just gonna sit back and thumb their noses at the whole process!!! What a sad sad country this is becoming. Oh my bad I forgot, it's okay for them not to have any skin in the game most of them voted for Obama!!!! He's given them a free pass
this is horrible, and it is straight-up communism. each one of those dealerships are privately owned & operated, and all employ countless people in their local areas. GM & Chrysler have NO expenses by having these dealerships. In fact, they actually earn revenue by virtue of royalty fees & having free storefronts to push their products. that isn't even the most criminal part. Many of these dealerships took decades to build, and have values of several million each. These owners will be forced to lose their ENTIRE equity & ownership and will have nothing to show for it. those that missed it, they actually had a Chrysler dealership owner on CNBC this morning. He outlined the specifics for everyone so that we may know exactly how this is working. He cited that he employs about 250 people, and his dealership is worth about $3.5 million. He said Chrysler is giving him nothing, and in exchange he is losing his dealer license through Chrysler, and his assets will be given to the dealer on the other side of town that was elected to "stay". Part of this is Chrysler, but most of it is the government, he said. He said Obama had outlined a plan for Chrysler, and Chrylser was forced to take it. bottom line: this is just another step toward communism. you have to love the fact a guy & his family could spend 2+ generations building up a family dealership only to have it taken away from him. awesome.
wellll... a week ago, there a couple hundred cars and jeeps at the local dealership.. now there are none.. I don't get how this helps
The only thing I can think of is that these cars are leased to the dealerships and are assets of GM & Chrysler. They are retrieving them in the face of bankruptcy????????
while it might be fun to point to partisan policies here, i don't think that has anything to do with it. i genuinely think they looked at market share in each environment and went from there. my bigger beef has to do with economic impact. for each dealership they close, they save what exactly, in costs? a small training fee that the manufacturer pays to the sales & service staff for proper training? that cost has to be pennies on the dollar for the economic impact of putting damn near a hundred or so people out of a job for each dealership closed. the unemployment that will be paid to these people will surpass the savings the manufacturer would have enjoyed from closing the dealership, and that's not even counting the lost equity that the owner of the dealership faces - losing everything. also the dealerships were selling countless cars for the manufacturer. so yeah, while in some cases the markets might have been saturated with dealerships, they were still moving cars - pushing inventory out for the manufacturers. this is essentially sweeping the expenses to the U.S. government, and ultimately, us, the taxpayer. you can't eliminate the cost, it just moves elsewhere. glad to know we get to foot the bill for putting so many out of jobs. /sarcasm
So we only worry about saving the jobs ... if there is a Union involved. Nothing new here folks. Move along ... I wonder what California unions will get from Obama if the fed govt. guarantee's California's bonds which are now needed since the Propositions get destroyed.
i hate to sound like such a mean person, but eff unions. they are seriously undermining a lot in this country right now. the Boeing strike last year was another ridiculous incident stemming from unions. Boeing was virtually killed economically (capitalization was cut into a third and financing was pulled) because of the strikes. why were they striking? well the genesis was due to the discussion of terminating pensions as they were economically unviable. people need to realize that pensions are a luxury, not an entitlement. In my opinion it is no one's fault but your own if you assumed you'd never have to put away for your retirement, and that everything would be handed to you.
