Thursday, May 28, 2009

Growing Outrage

Some enterprising blogger discovered a relationship between the closing of the Chrysler dealerships and the level of donations to the Republican Party or candidates. At the time he revealed this information it was not surprising but the factual aspects were murky. Even though we are not widely read and even more seldom quoted, we make an attempt to be scrupulous in reporting even the most minor facts.

In the follow up this is quoted from Reuters:

“A lawyer for Chrysler dealers facing closure as part of the automaker's bankruptcy reorganization said on Tuesday he believes Chrysler executives do not support a plan to eliminate a quarter of its retail outlets.Lawyer Leonard Bellavia, of Bellavia Gentile & Associates, who represents some of the terminated dealers, said he deposed Chrysler President Jim Press on Tuesday and came away with the impression that Press did not support the plan."It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers," Bellavia said. "It really wasn't Chrysler's decision. They are under enormous pressure from the President's automotive task force."

Further research revealed some alarming details about the dealerships which were shuttered: “Another review of all 789 closing dealerships, by WND, found $450,000 donated to GOP presidential candidates; $7,970 to Sen. Hillary Clinton; $2,200 to John Edwards and $450 to Barack Obama.”

More digging produced an interesting list of dealers involved who were singled out by the newly appointed “Car Czar.” If you have any curiosity about your local guy, hit the link and find out.

For an in depth look at one of the most scandalous situations we refer you to this link to see RLJ in action. This dealership, its owners and its now-terminated competition, are covered in this article along with its connections to the Obama administration. Scroll down about a half inch and find “The Mysterious Case of RLJ.” ZB is no doubt influenced by the proximity of the dealers involved. We are smack dab in the middle of their market area.

It is difficult to understand the logic of closing any dealerships inasmuch as they pose so little financial burden on the manufacturer. From local inquiry I find that the individual dealers are responsible for the purchase of the stock from the moment the auto transport arrives at the dealership. Any financing is supplied by either the dealers funds or those secured from local banks—not Chrysler. In addition to their original franchise fees, they also pay for signage rental on a monthly basis. These dealerships are independent business and many of these entrepreneurs have been in the auto business for decades.

One factor which makes this an exceptionally stupid move is the sudden availability of complete, fully staffed facilities, (789 of them nationwide) home owned and with a recognized reputation, who will experience little start up cost to become dealers for competitive brands. Given the experience of brands which now have the governments fingerprints all over them they will no doubt turn to foreign made entities. And this helps American manufacturing how?

Since you and I are now 70% owners (You are a US citizen aren’t you?) of Government Motors (formerly General Motors) we should probably applaud this crippling blow to “our” competitor, Chrysler, and a quarter of its dealers. With the government in charge I assume we will receive the same outstanding service and dependability we get from the postal service, Amtrak, and the department of motor vehicles. If the “greenies” who are cozy with this administration have their way, and they will, we will all wind up jammed into buses or driving cars the size of refrigerators.

You have been furnished with an abundance of links and if you search further within these web sites you will be led to more and more information. This could well provide the “smoking gun” for the malfeasance of this bunch of socialist/statist operators.

Selfishly, I’m glad our family drives Fords. We are also blessed with an expert mechanic at a local oil dealer who has become a close personal friend.. Please join me in a prayer for his good health and long life.

In His abiding love,

Cecil Moon

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