State intervention always sounds/feels good at the outset but is a very bitter pill in the end.

"I wonder how many still have Obama-Biden stickers on their back bumpers?"

I hope all of them.

My mother used to tell me stories about how the Soviet government systematically killed off the merchant class.

I scoffed at here. It'll never happen here, I said. Too bad, so sad for your former country.

Now, I see it happening on a daily basis since late January.

In what is slowly transforming into the USSA right before our eyes.

First the financial system. Then the major industries (car manufacturing).

Last night, on the Greta va Sustern show on FOX, it was revealed Obama had a delegation visit the White House. No media was allowed, but the event was recorded nonetheless.

We like to rant on about the MSM here, but how many of us will be able to stomach life once Obama continues in the same direction and allows only government-approved media.

Take a look at the redistributive taxation policies, giving to those who ‘deserve' any riches you may have.

I'm not normally paranoid or taken with conspiracy theories, but the US public only has a 16-month window left if they want to preserve their individual freedoms.

The People's Republic of America is starting to take a recognizable form.

We the People have to rise against this monstrosity. You have nothing to lose but your future chains.

I'm beginning to see much clearer what my mother, may her soul rest in peace, warned about decades ago.

It's not too late. Once top spokesmen for individual freedoms start mysteriously disappearing or dying, that will be final warning sign.

It's sad that so many of the people to suffer from the idiocy of that disgrace of a man were people who didn't vote for him (those that did are reaping what they sowed.)

"On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them."

Reminds of when the Germans decided to take over the Polish owned businesses and put the owners out on the street. Then just hand the keys over to a relocated German.

Now if you're Socialist this is perfectly understandable procedure as long as it's not happening to you.

He's just been nationalized. He is supposed to feel patriotic about it. Or so he's told.

Will the Kulaks revolt ?

If they don't, they are toast in Obamaland.

The liquidation of the Kulaks, Nepmen and other counter revolutionary elements must be accomplished ruthlessly. Petty bourgeois reactionary concerns about ownership, profitability, jobs etc. must be taken as evidence of counter-revolutionary agitation. Resistance must be assumed to be wrecking or sabotage.
Next, we can expect the forced collectivization of the farms and the nationalization of the financial institu . . . oh wait, we've already had that, heh, well, musn't stand in the way of "progress".

Welcome to Zimbabwe.

Profitable "farms" being passed to government cronies.

Well, it's just a good thing the obamanation hasn't had the chance to stack the court. Yet.

There may be hope.

the alternative is to withold any subsidies/bailouts/whatever.

but you righties fail to realize in a move of this scope there are ALWAYS oddball injustices and unfairness that happens. the main objective is to put the Big 3 on life support for the good of the economy. it is debatable if it will work; that's not the point I'm making. the point is the nit-picking extreme right has tunnel vision because you disagree with the majority of American voters.

you can't have it both ways no matter how constant the ankle biting.

soooooooo the right wing view is that it is very bad to have a prime minister with strong ties to Americans?

oh. only if it is a conservatist of the mulruiny tax cheat strain.

"A car dealer in Outlook is wondering what to do after being told by General Motors they were terminating his franchise."

What to do? SELL TOYOTAS. Or Subarus, or Hondas, Nissans, Volkswagens... or get a Tata dealership.

Oh, and sue the hell out of Obama Motors for sticking you with the inventory.

I'm glad its not me.

"but you righties fail to realize in a move of this scope there are ALWAYS oddball injustices and unfairness that happens."

Yes. That's why us "righties" think its a bad idea. If you can't do something without screwing over and financially ruining hundreds of companies, maybe it would be better to keep your fingers out of it.

Truth be told, this guy bought into a failing automaker with all he had.

This guy could've bought into any one of hundreds of franchises, or he could've actually built his own business, instead of tithing someone else's ideas.

Instead, he went lock stock and barrel into a shit business model, and he's paid the price.

Kinda sounds like capitalism to me.

carsalesman

"but you righties fail to realize in a move of this scope there are ALWAYS oddball injustices and unfairness that happens."

Never mind those starving Ukrainians or those freezing in Siberia, you can't make an omelette without breaking a few eggs, right comrade?

So you evil baby killing right wing hitlers should just stop complaining about those we crush for the revolution.

By the time 4 or 8 years roll around,most likely 4, the right will mobalize and start the clean-up.

"the main objective is to put the Big 3 on life support for the good of the economy"

Uh huh. For the "good" of the economy.

The reality is Americans will consumer less cars in the future. Production needs to fall with capacity. As production falls, capital will be freed up for more profitable ventures. Letting GM and Chrysler go bankrupt is necessary for the good of the economy. It will punish terrible management and force the union out. It will also allow new, efficient, and profitable companies to emerge if demand warrants it.

What is happening now will be terrible for the economy. Bad managers and unions will be rewarded for having bankrupted these companies. Good capital will be tied up in these bad companies and will not be redeployed elsewhere. Furthermore, the violation of property rights (for example: Chrysler bondholders) will have lasting long term repercussions.

But hey! Apparently wanting to have a sound economy based on long term viability is an extremist right wing concept.

I genuinely want Chrysler to go down in the clouds of dust. I want the company to not just be bankrupt, but become history, disappear, vanish.

Their latest models have the headlights that are either designed or adjusted so poorly, that their DRLs and low beams blind me. I am sick and tired of being blinded during the day and at night by Chrysler/Dodge/Jeep exclusively. Hate their guts and can't wait till they are no more.

Hardboiled, do you not understand the difference between having your business fail due to business reasons, and having it shot out from under you by a tyrant?

Lemme 'splain it to you. The first is capitalism, the second is socialism.

Oh ... and let's not forget the obvious immorality of stealing from taxpayers to fund a failed company. But then again, morality is a very difficult concept to grap ...

Prosperity is a former American idea.

Genteel poverty with Horton's $2.29 Lattes is all that anyone needs.

Spend more time getting to know your neighbors so you can keep an eye on them and report anything that my be look non-progressive or anti-state.

Yes, on planet Obama, life will be very different. You can get rid of buzz harshing uncertainty and challenge.

No need to worry about awful stuff like your retirement funds nor your mortgage your job ... there won't be any of those worrisome things. You will be worry free. But that is the only freedom you will have.

Live better in a more efficient 600 square foot apartment (no more yard work) ... Do more reading and walking ... and freezing and starving it's good for your health. That is important because under the Coming Obama health care plan, you will not have much actual health care, just a place to go line up and read the New York Time while you slowly die of whatever ails you waiting to see a state doctor.

ETC.

Seems to me all those dealers being dropped would have an excellent reason to start class-action lawsuits against the manufacturers.

As far as I can see, GM is shooting themselves in the foot by shutting down 40% of their dealerships. How many of those small-town dealerships are going to take on Ford, or Nissan, or Toyota, and transfer their good will in the community to the new brand?

You know, it's actually funny. I'm at a point in my life where I could really afford to buy a new vehicle; it wouldn't be a financial burden. But the current spate of offerings from the Big 3 leave me quite cold, and there is scarcely anything better from offshore. My current work rig is 13 years old, and holding up just fine. And my leisure-time vehicles are collector cars, and are all much older than that.

Seems to me that one of the reasons that the Big 3 are in the glue is that their products have improved to the point that they are good for 20 years' service with reasonable care, but they are still operating on a business model structured for a 2-year trade-in cycle. In effect, the pool of buyers that NEED new cars has become a much smaller part of the marketplace, and the fact that the products have all become so similar and "safe" in design has put a big damper on the group that might WANT a new car.

This is good. Once people get all the socialism they ever thought they wanted, force fed to them by Obama, maybe things can actually start to get better. Until then, expect it become, oh, not quite illegal, but very frowned upon (wink wink, nudge nudge), to be driving anything other than a Government Motors product. There will be extra taxes, levies, and disincentives for Eurpoean, Asian, and even North American cars not manufactured by government owned companies.

Posted by: The Phantom at May 22, 2009 11:34 AM

Say - if the domestic car companies were liquidated (or restructured) under bankruptcy protection, their production capacity would have been reduced by a bunch.

Do you believe that capacity reductions at the plant would not have been mirrored in the distribution side as well?

There would have been similar outcome, whether TOTUS/Harper have pissed away billions of our dollars on these welfare cases, or whether liquidation/restructuring had occurred.

That's the irony.

Besides: it ain't just a left leaning rookie president. It's also a Conservative prime minister that's doing the yanking.

One of the commentors on NP's story on GM and CAW posted that CAW had lobbyed the Ontario government in the 90's to allow GM to reduce payments to their pension so GM could give more goodies to the union at contract time. Can anyone verity that this really happened as I can find anything on it yet?

hardboiled

Cutting back on distribution networks is appropriate. Selling a franchise and not buying it back is not.

Yanking a franchise, refusing compensation and then giving it away for free to someone else is outright theft.

So, there is a grave difference.

I would bet good money that the beneficiary of the theft is politically connected to the democratic party.

I hope the affected dealers mount a class-action lawsuit, though America's increasingly perverted sense of justice renders success uncertain.

Carsalesman wrote: "...the nit-picking extreme right has tunnel vision because you disagree with the majority of American voters."

That has to be the most insane statement I've heard in quite a while. Since when does disagreement with the majority imply limited understanding?

I know a couple of used car salesmen, and they are great guys.
Owe-bamba would starve to death if he was a used car salesman.
I wouldn't even make eye contact with the guy if he started asking if I "need any help" in his dealership.

On the other hand, almost any used car salesmen would make a better president than a marxist professor from Chicago's burned out ACORN wasteland.

There's plenty of blame to go around, but the obligation (under CAFE standards) to produce "fuel efficent" cars at a loss in order to continue making the profitable ones that Americans actually wanted to buy didn't help.

Not many people know that even Toyota sells the Prius at a loss. How long can a company sustain itself under a regulatory - read politically motivated - burden that runs counter to market demand?

"How long can a company sustain itself under a regulatory - read politically motivated - burden that runs counter to market demand?"

That depends. Is the company unionized? lol.

gordinkneehill - good comment !

And under the 'Not So Fast' Banner;

-----------------------

Indiana pension funds ask court to halt Chrysler restructuring

By Bernard Simon in Toronto and Nicole Bullock in New,York

Published: May 21 2009 03:00 | Last updated: May 21 2009 03:00

Three of Chrysler's secured creditors have asked a New York court to halt the carmaker's Chapter 11 restructuring on the grounds that it violates their legal rights and the government's authority under the troubled assets relief programme.

--------------------

And, 'Thrown Under The School Bus'

-----------------------

However, the Indiana State Teachers' Retirement Fund said yesterday that it had a fiduciary responsibility to its members to continue the fight. The fund stands to lose $4.6m under the current settlement proposal.

-----------------

http://www.ft.com/cms/s/0/8e88357e-459c-11de-b6c8-00144feabdc0.html

There must be some legal recourse for this guy and others, no? Sadly I get the feeling that their franchise agreement probably states they can terminate the agreement for any reason, not just for not meeting certain requirements...still, there's got to be some kind of protection in the agreement for the franchisee.

"How long can a company sustain itself under a regulatory - read politically motivated - burden that runs counter to market demand?" Posted by: Kate at May 22, 2009 12:35 PM

Forever. Call it a Crown Corporation and charge excessive rents for output and restrict competition by legislative fiat. Bang, there you go.

The politicians have more clout, the bureaucracy have bigger budgets, and statist Canadians simply shrug their shoulders and complain about the evil socialist Obama.

There's 40 Crown Corps now. What's one more? Hey - you're invested in the car companies now remember. $4 billion bananas in Chrysler's pension fund. Soon to be followed by another $6 billion to bail out GM's pension fund.

And besides, if Crown's aren't the way - the government is adept at using your money to create artificial outcomes all the time.

Those regional 'development' agencies have seen their budgets increase 28% since the Conservatives got power. Think they're not for insiders and politically connected welfare cases? Think again...

still, there's got to be some kind of protection in the agreement for the franchisee.
Posted by: bar_jebus at May 22, 2009 12:50 PM

As a franchisee, you are dirt.

If you've had success and hold multiple franchises, one will eventually get some stroke and be able to negotiate. Other than that - if the franchisor tells you to do it - you say 'how high Sir'...

This guy has some warning after Obama stole Chrysler from the bind holders and gave it to his political supporters in the UAW.

He's actually quite transparent.

"How long can a company sustain itself under a regulatory - read politically motivated - burden that runs counter to market demand?" Posted by: Kate at May 22, 2009 12:35 PM

Almost forgot - Air Canada.

The french language requirement sets them back millions of dollars per year.

And why yes, they are asking the government for bailout money too...

There is a lot of malaise in the world today - especially in Europe and N America. But the emerging economies seem to be doing quite well, thank you very much ! (India's stock market is almost back to last summer's high already)

Any dots to connect here ?? Could part of the West's malaise be the worry over what the fetish might bring ?

The fetish of concentrating our efforts, allocating resources, spending dollars on the "Big Fight".
The fight against an essential, for life on earth, gas.
A gas that is only 0.03% of the atmosphere.
A gas that is an insignificant GW gas.
A gas that powers plants, food.

The poor old, much maligned carbon dioxide. You are a Scape Goat like the world has never seen !!

The Automotive Industry, one of among many, could have dealt with, and is dealing with, real pollution problems (think catalytic converter) but is really up against it - the Disciples of CO2 religion.

I fail to see how it is the dealers fault, that the mother corporation cannot make a buck.
I always thought, the dealers are independent and buy their ware from the corporation, and are free to sell at a profit or loss. The only real connection coming into play when there is a warranty issue. If those powers that be, built better cars, those warranty claims would decrease...

so can someone explain how decreasing the number of independent dealers, helps the bottom line of the mother corporation?
cause I think they have some issues with their unions that need sorting out, more than anything, including any perceived quality control issues.

bob,

US doesn't have 4 years to mobilize, it'll be long over by then I'm sure, if they don't do more than talk right now, then it's lost.

I find it a little unsettling how these successful dealerships are being shut down, and being given away for free. That can't be legal.

I am also willing to put money down on the fact that those decisions were based on party contributions/affiliations rather than the success of a dealership.

This doesn't bode well for Canada, let alone the US.

**"Paterson makes a powerful case against the tendency, still all too common, to judge policies by their intentions rather than their effects."

The end effects/result of O'Narcissist's corporate-fascism:

"The axe* swings wide at Obama Motors".

*Fasces: the rods with the blade of the Ax projecting: Chop, chop ......
...-

**"The God of the Machine"
http://www.cato.org/special/threewomen/god-machine.html

Obama's "plan":: Cut dealers, save UAW/CAW jobs.

Car buyers see no GM/Chrysler outlets, goes instead to Ford/Honda/Yoto/Nissan.

Order book gets thin at GM/Chrysler factories. CAW/UAW types told to go home - with pay. Red ink. Bail outs needed. Cost cutting needed, again. Close more dealerships. (Sounds like a computer programing do-loop, doesn't it ?)

A must-watch video:

http://www.glennbeck.com/content/articles/article/198/16200/

Hardboiled said "This guy could've bought into any one of hundreds of franchises, or he could've actually built his own business, instead of tithing someone else's ideas."

My guess is the guy just played the hand he was dealt. We don't know the reasons he went this way or that way. It was probably his best choice of the available choices. But he played the game fair and succeeded. He won in other words. Then someone stole everything. If he gambled and lost? Well that's part of the game of business and you can criticize him for his choices. He played and won though.

If you play poker and win. Then someone breaks into your house and steals your money you don't blame the game of poker. You blame the thief who broke in and stole the money.

I just have question, since we are forced to save GM here in Canada why are we not getting the assets of GM Canada? We bought it we own it!

Instead we get 2% of GM, I want the whole Canadian business broken off from the Parent. Why should the US Government own a corporation operating in Canada, plus I am pretty sure we have a law against foreign companies operating in Canada with more than 25% FORIEGN GOVERNMENT ownership.

I agree - and that's the point. If you are a franchisee, your ass is owned by someone else. This ain't appropriation.

If the car company had gone into receivership, same deal: reduced production, reduced distribution. You can't change one without the other. That's like WalMart ordering 30% less product but keeping all of their existing stores open.

The car companies failed. So will their distributors. And the gubmint as screwed you, and the dealers by getting involved.

The outcome though would've been the same if it was a court ordered closing, or those chosen by GM - probably under the same methods.

"There would have been similar outcome, whether TOTUS/Harper have pissed away billions of our dollars on these welfare cases, or whether liquidation/restructuring had occurred."

That is the lure of totalitarian economics, the delusion that outcomes can be known in advanced, and arrived at more efficiently. This is like looking at the rosters of a sports team, and awarding the championship based on opinions, without playing the game.

The difference is that a government functionary now has power over people's lives, and can hold out for bribes or favors based on his position.

This is like the European I once argued with who maintained that the bear in the cage at the zoo was free, and the bear in the forest was enslaved, because the bear in the zoo had his needs provided for for free and had no responsibility.

It's just someone's livelihood. What's the big deal?

WOLVERINES!

Garth Brooks sang "Thank God for Unanswered Prayers"; there's few people wishing now that the "Hope and Change" society's prayers weren't answered.

How could so many people think that change couldn't also go the other way?

I am learning that lives are so expendable by government ideology })

"If you are a franchisee, your ass is owned by someone else. This ain't appropriation."

If my company owns my laptop, I don't expect them to let me keep it when I quit, but I don't expect them to charge me for upgrades to it either; and if I do upgrade it at my own expense, I don't expect them to refuse to recompense me when that laptop is handed over to my replacement.

A franchise-parent company has the right to shut down or close any given franchise outlet at any time. I'm less certain they have the right to transfer ownership of that property and its assets to someone else without compensation -- especially if the initial owner/operator has heavily invested his own money in enhancing or expanding that property and assets, and the transfer has no obvious financial motive (i.e. it's reasonably expected to be more profitable under new management).

Of course, if the franchise contract *does* permit this sort of thing and this fellow signed it, well, caveat lictor (let the reader beware). That is foolishness on his part and bad business on the company's. But it would not be illegal.

This is like the European I once argued with
Posted by: tim in vermont at May 22, 2009 2:11 PM

It never surprises me to see those who conflate ideology with pure math.

Posit: A company is failing(ed). Creditors are ready to move in. What's the options?

1. liquidation - sell or melt what is and isn't bolted down. Other car companies may want the dealer network, maybe some want the manufacturing facilities, whatever. Either or, it's over. Get what you can for yourself - cause as the bondholder (creditor), you are screwed. Hope to see $0.15 on the dollar.

2. restructure - fire management, rewrite union contracts, reduce capacity, etc. Maybe one or all of these. The thing is broken. It needs to be fixed - those involved see a viable company post bankruptcy. Renegotiate debt & close part of distribution chain.

Steven Harper and Barack Obama wouldn't do the first, so they ponied up billions of your money, and bought/buying/nationalizing two car companies.

As a restructuring, it is widely conceded that overcapacity by domestic manufacturers was a 1st priority. This wasn't a government thing. And this would have been the case if a court was doing the restructuring. As mentioned, a 40% reduction in capacity requires a similar trim in the distribution network.

That trim is done by past sales, regional demographics, profitability, and likely a few more factors.

It's also capitalism.

Because these car company mutts haven't hunted in years. $87 billion in cumulative losses over the past decade at GM alone. These weren't exactly winners here. The bondholders also got sucked into it - because they had such a large piece of it. Above all, they're getting screwed the worst imho - because the government is telling them what they'll get.

The GM dealer who put his franchise up for sale in summer 08 was a smart businessman.

'Bear in a cage' comrade? Freedom? Gads. I share your feelings about nationalizing car companies - but the fate of dealers was decided months ago. Maybe not the who's, but certainly the numbers of.

Now if someone can explain to me why Canada paid 2x as much for their piece of Chrysler than the US did, then you'd have the real thing to be pissed off about.

And why hasn't anyone asked that question?

Stephen J ""If you are a franchisee, your ass is owned by someone else. This ain't appropriation."

They aren't expropriating everything though. My understanding is they are just taking his franchise license leaving him with all the stock. He used his credit rating to buy the stock therefore it's his ass on the line. He has new cars on the lot that he can't sell as new because not being a franchise he can't warranty the cars. He will also have a warehouse full of dealer parts that he can't sell because only a licensed dealer can install these parts. Other dealers won't buy these part either because they can only buy from head office.

He is completely ruined. At least if you're going to take the guys franchise buy his stock out as well.

In the future will we see lawsuits by these dealers for their money etc. Sort of like all the holocaust survivors suing for their property that was stolen. Or the owners of stolen art by the Nazi in Germany.
I wonder how many of the soon to be unemployed clerks, accountants mechanics, salesmen swooned and voted for change. They refused to believe those that warned them of O's plans. As long as they believed it would only affect the rich they were all for it.

Dirt-bags! Screw Obama and his cronies. This is what happens when your biggest and closest trade partner votes in a President on the basis of hope and change without even paying attention to the guy's socialist upbringing, voting record, and narcissistic psychosis. Who would have thought the USA would become USSA in such a short time.

I wonder how many of the soon to be unemployed clerks, accountants mechanics, salesmen swooned and voted for the Conservative Party. They refused to believe a conservative government planned to close dealerships....

Dirt-bags! Screw Harper and his cronies. This is what happens when you vote in a Prime Minister on the basis of hope and change without even paying attention to the guy's promises versus his actions and heavy handed control. Who would have thought that Canada would become Canuckistan in such a short time under a Conservative government.

Now we see why guns & ammunition are sold out in the US. Unlike what some Canadians think. Americans are not stupid.
As for Obama winning the election. After all the Acorn scandals, with its myriad of foreign funding & bogus electors. I think today I would want a re-count.
This man just continues to defy all laws or customs with no resistance, because of skin color, lofty meaningless words, moonbat personality cult or some shadowy back benchers? Who knows ,but he‘s getting away with it. With the added benefit of a worshipful Media of blind lemmings.
I think a lot of Americans seen this coming.

Remember Stalin had no qualms about starving 7 million Ukrainian private farmers in plain site of food. While machine gunning them down with troops from other regions of the Soviet Union. Man Women & Child. How many did Alinsky predict, oh yeah 25 million Americans must die for Utopian socialism. What’s a car dealer compared to that?

Revnant Dream:

"With the added benefit of a worshipful Media of blind lemmings"

"How many did Alinsky predict, oh yeah 25 million Americans must die for Utopian socialism. What’s a car dealer compared to that?"

Exceptionally well said on all points in my view.

I think we hope for the best as a defense mechanism even though our "gut" tells us something is really wrong with the picture.

We also under estimate, being so modern - after all it is 2009, the capacity for evil that leaders and systems of government possess. We do not learn from history and think we are different somehow - smarter, freer, enlightened etc.

Pride truly does come b4 a fall.

stop talking and do something.

Maryt said "In the future will we see lawsuits by these dealers for their money etc"

I couldn't imagine there not being lawsuits. I'm assuming the dealership contracts are written by pretty good lawyers. when you have a dealership you have a contract with the supplier. You sell his cars and he won't allow any competition to you and he gives you exclusive right to sell the cars. This is what the dealer takes to the bank to get his line of credit to buy the cars. Now even if you screw the dealer the bank is still looking to lose millions in the deal. They are going to sue for breach of contract. Not the dealer but the supplier. Now you're going to have insurance companies in the mix because they are going to lose money by insuring some of these businesses. I think they would be breaking the law if they didn't sue.

Probably going to see a lot of dealerships hit by lightning over the next year or so.

Didn't kindly Uncle Josef issue a "scorched earth" policy during WW2 to keep anything useful or edible out of the hands of the National Socialists?

What's good enough for old and not-dead-soon enough Socialists should be understandable to todays dictators-in-waiting.

Atlas Shrugged. It's not just a novel anymore.

Myself I think it is about MSM scare reporting with most of the facts left out. I don't think in law or for practical purposes, keeping the lid on the situation, the O ring can just walk in and take away a mans lifetime of work without severe consequences. This is about our way of life and the free market system, for those that may disagree name me a better system working in the world today. If this is not handled properly it could very well escalate into a complete lack of confidence in the government and that in turn would make to days financial problems seem insignificant.

No compensation for the dealers could very well turn this into something completely unexpected and catch the O ring more than just a little bit off guard. Think about it, would you stand by and watch your life’s work disappear and do nothing?

How is this Obama's fault exactly? Should they have just handed over all the money GM wanted? I thought you guys were against these business getting any dough.

Make up your minds.

Won't anyone think about the poor buggy whip manufacturers?

John, what a stupid comment, do you work for the government as well.

John:

There are such things as bankruptcy rules, where a business can be wound down in an orderly fashion.

The trouble here is that there's taxpayers' money involved, on both sides of the border.

If the companies had been allowed to go into Chapter 11, then the unwinding of the companies would have been done according to a lawful formula.

Now, Obama's making it up as he goes, throwing all precedents out the window and giving the UAW ownership while screwing everybody who actually plunked down their hard-earned mones investing into this dog.

Maybe it's time to talk with Kia ot Hyundai. It sounds like he has what they want.

Has GM had the nerve to release the list of which dealerships get the ax? Anyone know of it, is anyone compiling announcements from dealers?
- I wouldn't be surprised to never see the official list, the powers that be are scurrying hard to hide under the nearest rock.

... stop talking and do something ...

Wishful thinking, old guy! 'Something' is so long overdue on this continent. I bet my riding boots that I will see kids marching around schools in 'young pioneers' scarves before 'anything' will be done.

I was hoping for 'something' all the late months of 2008 but apparently no one had guts.

while I'm certainly not a lawyer or have seen the franchise agreement, in most cases the franchise can be dissolved by either party if the franchise doesn't satisfy all the conditions, such as quotas or market targets. If the franchiser terminates the agreement without due cause then there is probably a clause for disposal of assets. i.e. you don't see anyone selling Big Macs out of the trunk of their car if Mickey D decides to pull a franchise. Buyer beware for sure but when the heavy hand of the government jumps in and changes the rules then all bets are off. Besides, how is shutting down a major retailer in a small community going to stimulate anything?

Just had to share this post from Atlas Shrugged

FDR to extend hand in friendship to world's Nazis in speech from Hitler's bunker this June 4th, 1943
The following weekend, he'll be in Japan attempting to repair relations with the island nation through a talk delivered from Emperor Hirohito's palace.

This comes on the heels of the President's comments made outside Auschwitz that Nazism deserves "respect." Mr. Roosevelt also suggested that the nations of Europe and Asia should advance the Peace Process by making sacrifices, including "Land for Peace."

"We must dialogue with the moderate elements of the Waffen-SS, kamikaze, and banzai units," he declared.

The White House has announced details of Mr. Roosevelt's charm offensive. He plans to bow deeply to both Hitler and Hirohito as a sign of mutual respect, apologize for Pearl Harbor, Midway, and the Holocaust, and reassure both empires of his continued commitment to bankrupting and disarming America in the name of "Main Street."

As a sign of the United States' good will, the President will release members of the German and Japanese militaries captured in combat into American society at taxpayers' expense.

Additionally, American successes in Doolittle's Raid, the Battle of the Coral Sea, and Midway have now been redesignated "Embarrassing Failures of Diplomacy;" the methods used to decipher Japanese communications leading to the American "victory" at Midway have been published in the New York Times, and the Cryptanalytic Unit responsible for the intelligence that gave America the advantage there has been accused of lying by one of Mr Roosevelt's closest allies in Congress.

Plans for actions at Hiroshima, Nagasaki, Dresden, and Normandy have all been postponed and await Nazi and Japanese approval.

President Roosevelt also unveiled Executive Order #12071941 establishing "Overseas Contingency Operations Relocation Camps." Americans opposing the President's policies will be designated "extremists" and evaluated for the confiscation of their First through Tenth Amendment Rights.

The Order also gives the president the authority to monitor and suspend all radio, telegraph, and pen-and-paper communications.

Allied leaders could not be reached for comment.

Posted by: Amillennialist

I would expect, and this is just me, that anyone left with an intact dealership will be thinking about drastically reducing the amount of stock they carry. The car lot of the future will be a single room with brochures, and new cars will be ordered from the factory only when there is a buyer. I see no other way for surviving dealerships to reduce their risk.

Same goes for the parts inventory. You want anything other than fan belts or brake fluid, it will be a 5 business day wait.

Guess der Fuhrer will next be unveiling a little, efficient "Peoples' Car". German traslation: "Volkswagen". Fuhrer-approved, did I mention?

everything made clear . . .

"Page 15 was particularly enlightening. There, in their "Automakers report cards," Consumers Union summarized their findings for each of fifteen major car companies.

Dead last was Chrysler. CU recommended zero percent of the Chrysler vehicles they tested. That's right--zero. Second to last was General Motors. CU recommended 17 percent of GM models. By contrast, most other companies had half or more of their models get the thumbs up. Honda was the top ranked brand; CU recommended 95 percent of its models."

rtr @ http://gregmankiw.blogspot.com/

"I would expect, and this is just me, that anyone left with an intact dealership will be thinking about drastically reducing the amount of stock they carry. The car lot of the future will be a single room with brochures, and new cars will be ordered from the factory only when there is a buyer."
Posted by: Kevin Lafayette

This is how GM is already marketing the new Camaro.

The headline is a slight against car salesmen. I doubt the community organizer could sell cars.

I think a lot of capital will start to flee the United States for overseas. Investment requires that, to some extent, the rules be knowable or the risks be measurable. It is becoming rapidly apparent that neither of those requirements can be met in Obama's America. Bond holders can't be sure what they have, investors in financial institutions can't know how or to what extent they'll be strong-armed into untenable loans or investments by the government, and business owners and manufacturers can't know when the government will impose such onerous regulations upon them that they'll no longer be able to produce a marketable product for a profit. If nothing changes, the US economy is in deep long-term do do.

It's gonna get worse:

"GM borrows $4 billion more, prepares for bankruptcy"

Unless the proverbial cavalry shows up, there's going to be the same complaints from more-numerous GM dealers too.

Savings y muerta. Si Fidel El Corpsedelecto save.
...-

"Official Cuban daily proposes 'Savings or Death!'

Cuban state media says the island should adopt the motto "Savings or Death!" to withstand tough economic times.

(Excerpt) Read more at newsvine.com ..."

Commenter says:

"Tomorrow the NYT will say the same for us."
http://www.freerepublic.com/focus/f-news/2256657/posts

Having a hard time getting worked up over these guys.

1) If they had a contract it is null and void if the company goes bankrupt, which it effectively is. So it not like everything was great and then bang its gone. So his alternative would have been complete bankruptcy and he would have been screwed.

2) He can always sue if he feels his contact doesnt allow it.

3) dealers....honestly...legitimate business people, perform an interesting service but as someone pointed out, sell some other type of vehicle if your dealership is so valueable, location, contacts etc. if the value was simply you were selling Dodges then I guess anyone could have done it.

In Canada, the piece that is worth saving are the parts guys, assemblers are all foeign owned and clearly they continue to show up. Dealers can shift brands. The parts supply industry is the real value and the strategic part of things, it employs more people, adds more value.

It isnt socialism when his business was dead without the government. He is just pissed off it wasnt him. Do the American thing and sue for damages and compensation. If the contracts dont support your position then you are out of luck.

Lesson to be learned again again, accepting government money means problems for many. In this case no government money meant no business. Do not let your industry get into a state where it requires government funding, they are liable to exercise influence...like any other capital supplier.

Personally, I wanted Chrysler and GM to o bankrupt with government providing DIP financing if necessary 4 months ago. We would have been a lot better off rather than this slow motion tooth pull.

hardboiled:

"The French language requirement sets [Air Canada] back millions of dollar per year"

Care to substantiate that? I've travelled extensively throughout Asia, and the FA's there don't seem to have any problem making announcements in Cantonese, Mandarin, Japanese, Korean, and English on the flights. Do you have any figures or facts, or is this just typical anti-French BS pulled out of your rectal orifice?

Stephen said "sell some other type of vehicle if your dealership is so valueable, location, contacts etc."

When you apply for a dealership you don't choose where it goes. You can't call Starbucks and say I want a franchise at this address. They give you a franchise at the address they want. If you own a Starbucks and it starts going under you can't call up Second Cup and have them come in. A lot of time the property is leased, you don't own it. A lot of times the lease is owned by head office not you. You can't use their land to work for their competition. Even if he does have control of the land what's he going to do with 8 million dollars worth of inventory that he can only sell for 1 million? He's bankrupt, no credit. I'm sure if they bought out this guys inventory he has the brains to do something else. Car dealerships are very complicated businesses. If you can run one of them you can run most any business. You can't start a business when you're bankrupt though.

I work in auto parts and I've worked at dealerships. Things ain't that simple. Most businesses aren't that simple. That's why we have Contract Law. This guy's getting screwed.

To Hardboiled:

The gist of this story was Obama's intervention in the auto industry! What has Air Canada and the French language to do with that! Swiss Air makes all of it's announcements in four languages! As does Air France and many others!
On a flight to Germany three years ago--I sat with a John Deere rep. who spoke seven languages, and yes, he spoke French. You're behind times man!! Even in redneck Texas, all regional flights make announcements in Spanish and English! !

If there's one thing the Americans have more of, it's lawyers. Time to hire one and get things sorted out.

Re: "Welcome to Zimbabwe. Profitable "farms" being passed to government cronies."

That thought crossed my mind too.

Nice summary Brent. The dealerships are in a very vulnerable situation and I can fully understand dealerships being closed as cost cutting measures. Business can be a tough ride especially if you're going to try and compete with the big boys. Here's the thread I can't let go of here. They aren't closing this guys dealership and they aren't opening a new dealership. It's going to a new location with a new owner. Maybe the new location is a better location. I'm assuming it's in a new build area. It's probably just a vacant lot at this point. Maybe they were going to give the new guy a franchise before the crap hit the fan but now all they can do now is transfer an existing one. The new guy has no stock at this point and needs to buy some. Why wouldn't they buy out the existing franchise owners stock?

My hunch is they are trying to screw the guy and they are using the Chapter 11 as a way to do it.

gord:

Mostly agreed, except for the idea of the closing of the franchise is a cost saving measure. The closing will not be a cost saving for Chrysler because the franchise does not cost Chrysler anything; in fact, they probably receive fees from the dealer for the privilege of having the franchise. If there is a upside to Chapter 11, it is that it allows for the troubled company to survive. Normally this is done by allowing the troubled company to download its problems on all those companies that were doing business with it - on a relatively equal basis.

There does not seem to be any equality to the pain. Although we have no proof at this time that the proposal is politically influenced, I certainly have my suspicions. I agree with your last sentence completely and add that there appears to be too much politics associated with this.

I'm sorry...are you speaking of Outlook, Saskatchewan? Yesterday on Gormley there was a dealership from Watrous, SK telling the same story. Sad...and so we bail out GM. I'm so opposed to that, I wish that our PM would stick to his guns and say no, but it seems that's too late.

Gord,

You are right things are emore complex. If he is getting screwed then he should sue. I have yet to see where any governemnt has invoked legal protection for Chysler from this over and above what they would get in a bankruptcy court.

I am sorry that things havent worked out for this guy. But really what is the remedy here. If the government wasnt involved then the company would have gone bankupt and he would have squat anyway....so I fail to see the harm done.

In fact by keeping chrysler alive there are is at least a market above zero for his parts inventory.

I hope the government does see the problems associated with being involved in this. It might make them more wary of becoming involved in the future, because they are potentially getting involved in decisions that just arent the purview of the governments.

I would think if his contract has been voided unjustly like it is being alleged, then any non competition clause also disappears, so he could get another delarership...if he owns the land, which many do. If all the dealer brought to the table was a willingness to buy the franchise then it is an unfortunate business decision and the guy wasnt adding a lot of value, or at least unique value. He knew the rules, he signed the contract....and his alternative is equally bad. I fail to see how this is the government's fault.

Other than bleating about the fact they are in a bad situation what are these dealers offering as an alternative, unless they are saying they should be supported to?

KevinB: "I've travelled extensively throughout Asia, and the FA's there don't seem to have any problem making announcements in Cantonese, Mandarin, Japanese, Korean, and English on the flights." -- and what do you know about how much this may cost them? The mandatory bilingual services on Air Canada do cost them -- it came up as an issue a couple of years ago when they were also encountering financial problems. There is nothing anti-French about it -- though there may be an undercurrent of anti-forced-bilingualism-in-context-that-may-not-warrant-it.

If I were Toyota or Honda, I'd be making these franchise owners offers they couldn't refuse.
I'm told by insiders that Toyota has a crapload of cash put aside for "contingencies".

If a company goes bankrupt, do the employment agreements besome null and void?

I mean, the executive pay/benefit packages, are THEY on the table now aws well?

Just wondering.....

Unreal. Is he a proud American? (he wont show his birth cert and his wife says not) Is he Muslim? (see 'my muslim faith' at you tube, RIGHT NOW) Is he anti-American? (doesnt anyone read/think for themselves?) Is he anti capitalist? (see above)

USA wont recover from what he's doing.

AND this is just the 'distraction' while Muslim demographics and propensity for getting 'offended' will swallow USA. Our president denigrates the Bible, mocks US exceptionalism and calls our enemies his friends. Goodness gracious, somebody better get a few newspapers to mention this.

Imagine, Conservative Americans, the ones who built the place, ARE CONSIDERED THE ENEMY ALREADY!!!!