I currently own a 2002 Chevy Trailblazer, which I love, and shopping around for a new SUV. I don’t want to own a car from a company which is government run so I am looking at Toyotas. How many others feel as I do?

This may not be the main problem with U.S. auto manufacturers, but it is a real and persistent problem that needs to be dealt with.

It’s a necessary step among many that need to be taken.

Just because other steps need to be taken doesn’t mean this one doesn’t. It does.

I just have the feeling that the Unions are the ones behind a plan to cut costs by hammering local dealers and leaving the union package basicly untouched.

This plan will automaticly cost the company marketshare.

All those little dealers in small towns – all that marketshare will be lost.

So as expected – Govenment control means the company will be run in a horrible fashion more concerned with politicals than making a good product and
good managment.

When does the new lines of Obama and Gore.

The new SUV – the Michelle.

Just heard an interesting tidbit on the radio this morning. The plan to close dealerships may disproportionately affect minority owned dealerships because they are more likely to be smaller and not carry the full line of makes.

…the solution is to cut the number of salesmen?

It just seems to me, that the costs involved with retaining many of those dealerships slated for the axe could be trimmed without eliminating them outright. Dare I say, maybe there are otherplaces where cost can be cut as well…. cough (labor).

The Dems keep saying that auto sales are down because GM, Chrysler, etc. are not making the cars the American consumer wants, but this statement is always used to support their conclusion that these companies need to make more fuel efficient cars and trucks. I’m not suggesting that we don’t all want our cars to be more fuel efficient, but I hardly believe folks are putting off a new car purchase because there aren’t enough fuel efficient choices in the marketplace.

Let’s get real. People are over extended. We’re in a recession which is not helped by the fact that for a very long time now a person has had to basically take out a 2nd mortgage to buy a new car.

Americans aren’t buying as many new cars and trucks because of poor fuel efficiency, they’re not buying them because they cost too D@mn much!

The cars Americans want are the ones that cost about ½ as much as they are now. If GM and Chrysler could do that they wouldn’t be closing dealerships they’d be expanding them.

But alas to charge less they’d have to make them for less, and we all know their biggest expense (labor, not advertising or dealerships) is off limits.

I mean, if you have fewer dealerships they can charge more for the cars and increase the profitability of the car companies right? It’s not like Americans are going to go buy cars from any of them durn fooreigners now is there.

…

Why, yes, the sky is violet.

/end snark.

Thesame model as for health care.

1) Clear out the small players – here by force (in health by regulations and malpractice insurance premiums)

2) Mandate purchases of GM/Chrysler by government agencies, perhaps employees at state, federal, and local levels. Perhaps even have Congress pass a Bacon-Davis type act that forces parties receiving government funds to purchase GM/Chrysler autos. (Some portion of this may happen in health care)

3 a) (Fascist model) Take a controlling interest in the remaining dealer networks in return for channeling these mandated car sales through these dealer networks – like the way they control the auto companies. Those dealers who don’t play ball won’t get any of these government sales contracts – which means they won’t stay in business. The favored “private” dealers stay in business so long as they serve theie government masters.

3 b) (Socialist/health care model) The government goes into the dealer business themselves to distribute the government-mandated car purchases – i competititon with private dealers. They will also open their gates to private buyers at lower prices (or government warranty guarantees, etc. and otherwise create a deal the public can’t refuse, making it impossible for private competitors to stay in business against their deep-pocket government competitirs. Eventually, the government runs all the distributorships – at huge taxpayer expense.

I won’t buy another car from a company owned by the American Government or employees are a member of A UNION.
In 2010 we will throw out all obama thugs and it will take 40 years for the DEMOCRATS to RECOVER from destroying the economy of this great Nation if the DEMOCRAT ever do.

as a result of the frederal government unconstitutionally elbowing its way into the car business to benefit the unions.

Just watch the Obamunists punish Ford severely for not taking bailout money. It will happen. For starters, Ford has probably sold it’s last fleet vehicle to a federal gov’t agency.

- JP

you close sales outlets to cut costs. Whether the government is involved or not, GM and Chrysler would need to do this. Seems like a simple Econ 101 opportunity cost decision for a business in dire straits.

I know you are against government intervention on this matter so your last paragraph appears to be a bit incongruous. If you think Obama should not be involved in the auto industry, then why should he push to keep rural small town dealerships open?

My distant cousin owns a chevy dealership and uncle owned a ford dealership. I don’t really know what burden dealers have on the manufacturer other than floor plan financing. Not sure that union dealership employees are the issue?

I’d think the market would sort out the # of dealers. Can’t manage your expenses and revenues and you go out of business.

FBN had a profitable Chrysler dealership owner on this morning that got the call from his regional that his dealership was being axed. Axing a profitable dealership? sheesh.

I wonder what the criteria are for selecting dealerships to be cut and even the math that supports cutting any dealerships.

I’d think the problems most dealers have is the general credit crunch financing inventory more than anything. I guess when GMAC gets hit by credit crunch and cannot finance all the special deals they have no tricks left to support sales that have high legacy costs built in.

that the criteria for selecting which dealerships stay open could be more political than economic.

- JP

The impact of closing 3400 service centers? New car sales down, auto inventory getting older, older cars need more service?

I’ve talked to many dealers/salesmen who claim that they can sell a new car at a loss because the service department keeps the dealership afloat. If this is true, then closing dealerships to save the parent corporation a few bucks makes very little sense. After all, dealers tend to use mfg parts, while indies use the cheapest substitute available. Just sayin’.

would be to move headquarters to a right-to-work state and vote the big tent union out.

I dont think closing dealerships is the solution.

He is a total Obamabot. It’s sad to see a CEO cower to a President. In Fritz’s defense, I’d do the same, he saw his boss get taken out by President Zero so Fritz is smart for his own career shutting up and carrying the water. It’s just sad to see a CEO of GM take orders from Obama.

Hocus Pocus – those dealerships cuts are just stage craft. Plus all the folks that work at the dealerships are expendable – they don’t work for the UAW. These car companies first – need to quit making cars – which they are doing for 9 weeks. They need to quit paying people for NOT working. The UAW contracts should be shredded. If 500,000 a month a losing jobs I am sure some of those folks could be re-trained in 9 weeks to take over the UAW jobs…..The new workers could come in at the same payscale as other non-UAW plants. Get rid of the UAW and most of the problems could be solved. Get Obama out of the board room and these companies might have a chance. Staying with the old mentality of the unions and government control is just a recipe for disaster. The American public – AT least 70% of them will shun UAW/government built cars.
Period. The U.S. government cannot save these companies even if they bought every last car they build. If anyone is really interested in saving America and American business than you must fight the fascism that is invading America.

No surprise that most of Chrysler dealer closings are in Texas….

I wonder if the Arlington, Texas GM plant will be on the chopping block….

Obama’s economic civil war – here it is. Taste the bitter fruit.

what they call wasteful competition – remember the NRA?