Are Car Dealers Getting Shafted?

[Nevada_Ballin]

Chrysler wants to close almost 800 dealerships through their bankruptcy filings and today GM says it wants to close 1,500 dealerships total. A lot of these dealers say their Plan B was to sell used cars until things get better but they end up facing another problem - banks are issuing notice to them that they will not process consumer loans for them - even the ones who have been profitable through these rough times and owe no money.

One side of me says, bummer, too bad GM didn't have the management foresight that Ford had 2 years ago. Another side of me sees how it affects the communities these dealerships are in, like local tire shops and such that they do business with everyday. Then there's the loss of jobs. A lot of these places have like 50-60 employees.

[kevin21boston]

Yes, these dealers are totally getting screwed. it is disgusting what chrysler and GM have done to them. they are even closing down some of their best dealers which is asinine.

1100 from GM and 800 from Chrysler- 1900 dealerships are out. say 25 people work at each dealership = nearly 50,000 people are out of work from these actions alone. :(

[resnor]

And who's the one pulling the strings on these...BHO.

[Nevada_Ballin]

And who's the one pulling the strings on these...BHO.

Wait a second, i thought the right wingers wanted these comapnies to go through bankruptcy......... this is the result of that, not the help that Obama gave them.

[kevin21boston]

Wait a second, i thought the right wingers wanted these comapnies to go through bankruptcy......... this is the result of that, not the help that Obama gave them.


we wanted them to go through bankruptcy when it cost the government $0.

now when you poured in $20B into GM and are about to add another $30B to that, which makes $50B in loans, thats when we conservatives get pissed off. if they are getting so much money at least keep people's jobs.

it would have been sad but if the people who got laid off because of the GM and Chrysler restructuring got laid off 8 months ago before any bailout money was given to them i wouldnt have any problem with the layoffs. it is a business after all. it justs pisses me off that obama gives GM $50B and they STILL lay off people.


its unfortunate but we as a nation have not seen the worst of this recession, dont let people fool you into saying that its better.

[MonoxideChild]

Two things about this:
1) The money that was given to them was for PAST debts. GM is still 2 steps behind on everything. We gave them money so they could keep themselves in a hole, and not dig a deeper one.
2) After seeing, the Volt, you know, the car that is gonna "save" GM, well, it's ugly, doesn't do half the things it was originally supposed to, and it cost like 45k. Ridiculous.

Oh, and by the way, the delers weren't forced to sell GM exclusively. Diversification is the best way to keep investments safe. I guess someone should've told the "experts" that. To sell a shoddy product, just because it was American made, is a horrible way to do business. The problem with GM is that they had, and still do have, this arrogance about them. "We'll give them crap, and they'll love it."

[conviction]

we wanted them to go through bankruptcy when it cost the government $0.

now when you poured in $20B into GM and are about to add another $30B to that, which makes $50B in loans, thats when we conservatives get pissed off. if they are getting so much money at least keep people's jobs.

it would have been sad but if the people who got laid off because of the GM and Chrysler restructuring got laid off 8 months ago before any bailout money was given to them i wouldnt have any problem with the layoffs. it is a business after all. it justs pisses me off that obama gives GM $50B and they STILL lay off people.


its unfortunate but we as a nation have not seen the worst of this recession, dont let people fool you into saying that its better.

thanks for bringing sanity to the thread.