Letter From a Dodge Dealer

[MICHDAD1]

Letter from a Dodge Dealer

Wednesday, May 20, 2009

letter to the editor

My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.

We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.

I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.

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. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as “new,” nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.


Our facility was recently totally renovated at Chrysler’s insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.

HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?

THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY

This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.

This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.

HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?

I beseech your help, and look forward to your reply. Thank you.

Sincerely,

George C. Joseph
President & Owner
Sunshine Dodge-Isuzu




When all of the dealers from both GM and Chrysler that are on the chopping block start to close down the domino effect will happen and it will be devastating to the economy. This is only the beginning.

[Mike Furley]

I sometimes wonder what Obama's endgame is. I know he had a paper thin resume going into the White House, but that doesn't mean he's a political dope.

Did anyone see the election returns in California from this week? Unless I'm missing something, 2/3 of the voters rejected tax & spend provisions on the ballot and they were told draconian cuts to state services would manifest if the measures didn't pass. This is one of the more liberal states in the country and Obama's philosophy of government was handily rejected.

If this is the political mood in California now, what does that say for the rest of the country? To me, the thing that pissed me off the most during the presidential election is that Obama didn't come out proudly in favor of socialism. In fact, he bristled at the attacks of McCain, Palin, Joe the Plumber, and ignored the cacaphony of attacks from Fox News & talk radio.

Now that he is in office his policies aren't quite as "nuanced" or pragmatic" as his flowery rhetoric was during the campaign. He is now building a record.

I guess my point is, either he railroads through the rest of his agenda this year, or he won't ever get it done. Even his own advisors concede the economy won't turn around until 2010 ---- and they believe in his policies.

What if the critics are right instead? The GOP only needs a net gain of one Senator to put the breaks on this. If voters in California today reject these policies, what will voters in Ohio, Indiana, South Carolina, North Carolina, Georgia, New Mexico, Virginia, etc the other non liberal states that voted for him do in 18 months and the economy is still lagging and the tax burden is higher?

This is hope and change I can believe in.

[The Michigan Man]

Great strategy. Arbitrarily shut down the profitable, long standing dealerships will result in ____________? What? Reducing sales is going to turn Chrysler around, are you kidding me?

Letting the government override market forces and seize businesses is very dangerous, and leads to unfortunate and disastrous results. It is reminiscent of the USSR handpicking what goods and services and in what volume that the companies will provide them in, resulting in hour long lines to get basic items like cheese and bread. For those who may scoff at this comparison – this is how loss of freedom starts, one little incident here, another there, and before long it is widespread. Very scary.

[Wolvrin704]

Their reasoning is that by closing less profitable dealers it'll create more interest in their cars.....I guess. They do state that closing X amount of car dealers is preferable to closing all of them. I can see the point there but what they don't realize is that its not the sayuration of dealers causing the issue; its product and finances. Again its the economy stupid (Obama, gov't, GM, Chrysler, etc...).

[michAGAIN]

Two days ago I heard both Chrysler and GM spinning this news. Honest to gosh, I swear, they came out and said this move would actually save the customers money on a car deal.

I can just hear the savings:

Customer to dealer: "So what's the best price you can give me?"

Dealer to Customer: "Look Mac, if you don't like my price why don't you drive 500 miles to the next dealer and check out his price."

[gator]

Their reasoning is that by closing less profitable dealers it'll create more interest in their cars.....I guess. They do state that closing X amount of car dealers is preferable to closing all of them. I can see the point there but what they don't realize is that its not the sayuration of dealers causing the issue; its product and finances. Again its the economy stupid (Obama, gov't, GM, Chrysler, etc...).

Just two points here. First, there is no evidence that they closed dealerships based on performance or profitability, which is why many dealerships are now bringing lawsuits against Chrysler and GM. Second, I can't figure out how you create more interest in your product when you might have to drive a couple hundred miles for service after your purchase.

[Mike Furley]

"Democracy extends the sphere of individual freedom, socialism restricts it. Democracy attaches all possible value to each man; socialism makes each man a mere agent, a mere number. Democracy and socialism have nothing in common but one word: equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude." - Alexis De Tocqueville

When Obama's auto task force directed Chrysler and General Motors to shut down 4,000 dealerships, I'm wondering if all of the people who had their livelihoods stripped away by the federal government would maintain the freedom they feel is in the latter context and not the former.

I eagerly await Michael Moore's new documentary Barack & Me detailing the suffering of these families at the hands of the "auto executives" of Obama's auto task force.

[editor]

On a really cynical, paranoid level, the worse things get, the more people suffer, the more they turn to government for help. And that's what he's really after: more government control over everything.

[michAGAIN]

This government and their agenda....................i haven't even left the country and now I live in France.

[Wolvrin704]

Just two points here. First, there is no evidence that they closed dealerships based on performance or profitability, which is why many dealerships are now bringing lawsuits against Chrysler and GM. Second, I can't figure out how you create more interest in your product when you might have to drive a couple hundred miles for service after your purchase.

Chrysler did use that rationale of performance. That was what our local news was reporting the day the list was published. In fact here is an article backing it up although they don't give exact figures. I remember them talking about how many cars a typical Honda dealer sells compared to the Chrysler dealers that were being losed.

http://money.cnn.com/2009/05/14/autos/chrysler_dealer_closings/index.htm?postversion=2009051410

While in some areas you may have to drive further I think it'll be rare for people to have to drive hundreds of miles. In a metro area like where I live there were just way too many dealers, and they closed 6 of them here. Not that I'm trying to legitamize what happened because I surely don't agree with it in the least. The moves this administration has taken, especially in the auto industry, have been totally inconsistent with capitalism. Its unfathomable that the federal gov't is being allowed to force businesses out of business on such a large scale. Its one thing to allow them to fail on their own, quite another to force them.

[MICHDAD1]

Chrysler did use that rationale of performance. That was what our local news was reporting the day the list was published. In fact here is an article backing it up although they don't give exact figures. I remember them talking about how many cars a typical Honda dealer sells compared to the Chrysler dealers that were being losed.

http://money.cnn.com/2009/05/14/autos/chrysler_dealer_closings/index.htm?postversion=2009051410

While in some areas you may have to drive further I think it'll be rare for people to have to drive hundreds of miles. In a metro area like where I live there were just way too many dealers, and they closed 6 of them here. Not that I'm trying to legitamize what happened because I surely don't agree with it in the least. The moves this administration has taken, especially in the auto industry, have been totally inconsistent with capitalism. Its unfathomable that the federal gov't is being allowed to force businesses out of business on such a large scale. Its one thing to allow them to fail on their own, quite another to force them.






As the FED takes over GM after bankruptcy (60% ownership), I will NEVER EVER buy another GM vehicle.

The FED is a private corporation in which they control the money supply and interest rates which has forced companies (by their (FED) control) out of business or into BK. This gives the FED the opportunity to buy these businesses at discount rates especially when they are printing the money for free. The biggest SCAM in the history of the world is being perpetrated on the American people. Remember what I am going to tell you here "THE AIRLINES WILL BE THE NEXT SECTOR THAT THE FED WILL TAKE OVER". With the economy down, people losing their jobs, inflation or maybe hyperinflation about to hit, oil will skyrocket and the airlines will be in the same position as the auto makers are in today. No one to buy the tickets to fly,can't pay for the fuel, and wha.. la .. they will have to file for BK. Along comes Obama and the FED to the rescue and seruptitiously takes down the companies. FWIW

I could get into details , but I'm too tired and need to get to bed.

Just my two cents worth.

[gator]

Chrysler did use that rationale of performance. That was what our local news was reporting the day the list was published. In fact here is an article backing it up although they don't give exact figures. I remember them talking about how many cars a typical Honda dealer sells compared to the Chrysler dealers that were being losed.

http://money.cnn.com/2009/05/14/autos/chrysler_dealer_closings/index.htm?postversion=2009051410

While in some areas you may have to drive further I think it'll be rare for people to have to drive hundreds of miles. In a metro area like where I live there were just way too many dealers, and they closed 6 of them here. Not that I'm trying to legitamize what happened because I surely don't agree with it in the least. The moves this administration has taken, especially in the auto industry, have been totally inconsistent with capitalism. Its unfathomable that the federal gov't is being allowed to force businesses out of business on such a large scale. Its one thing to allow them to fail on their own, quite another to force them.

Sorry that it took me awhile to get back to you on this. I was primarily going on information I heard on a talk radio show when I was coming home the day after Chrysler announced its foreclosure list. Particularly, a call from a dealership owner who competed against another in town. He claims that his dealership grossed much more in annual sales than the other, but he was closed down in favor of the other. He claims their was no logic in their decisions although your article does suggest that approximately half of those closed were very small time. In case you are interested check out this link http://forums.nasioc.com/forums/showthread.php?t=1771992 ; shows an interesting aspect of the closures. Make sure you click on the link to the article by the The Free Republic; it has some additional updates. Looks like their will be some more checking it to this though I don't know if you can fight government control anymore. At any rate, it looks like Chrysler and GM are facing lawsuits based on the letter of law on these closures. The road we are headed down is really quite sad.

[gator]

As the FED takes over GM after bankruptcy (60% ownership), I will NEVER EVER buy another GM vehicle.

Couldn't agree more. When they don't have enough loyalty to Americans to make a competitive and quality product, do you think I'm going to feel a loyalty to buy their stuff. I'm not going to put myself out of big bucks in the name of loyalty, which really means I'm overpaying for union labor. Well, that was actually my feeling before the takeover. Now, it's just kind of on principle. Government run and rewarding unions which killed the company to begin with.....nope, not a customer here. I kind of wonder what will happen if enough people think like us and they can't move their product after all this? Will the taxpayers be forced to continue to support the bust of a company?

[MICHDAD1]

Couldn't agree more. When they don't have enough loyalty to Americans to make a competitive and quality product, do you think I'm going to feel a loyalty to buy their stuff. I'm not going to put myself out of big bucks in the name of loyalty, which really means I'm overpaying for union labor. Well, that was actually my feeling before the takeover. Now, it's just kind of on principle. Government run and rewarding unions which killed the company to begin with.....nope, not a customer here. I kind of wonder what will happen if enough people think like us and they can't move their product after all this? Will the taxpayers be forced to continue to support the bust of a company?

It was 60% and now it's 70%

http://bx.businessweek.com/general-motors/us-government-to-take-up-70-stake-in-general-motors/13993999839899753071-cfa7e96a5d29557c828d4acf7dbccd08/

[Wolvrin704]

Thanks Gator for the link, good stuff. And my understanding is it wasn't off gross sales but off units sold.


Its very disturbing to me that the gov't is now owning private businesses, especially with the power they have over the competitors. This could get bad, very bad.

[The Michigan Man]

As the FED takes over GM after bankruptcy (60% ownership), I will NEVER EVER buy another GM vehicle.


I would rather buy a GM vehicle that is 60% owned by my government than a vehicle made by a foreign company.

[MICHDAD1]

I would rather buy a GM vehicle that is 60% owned by my government than a vehicle made by a foreign company.

Hate to break the news to you, but your government will not own GM. The FED will.

[The Michigan Man]

Hate to break the news to you, but your government will not own GM. The FED will.

OK, I'd rather buy a vehicle 60% owned by the FED, an American entity, than a foreign vehicle. I don't see how punishing autoworkers (who have no say in the direction of the company) by boycotting their products is constructive.

[MICHDAD1]

OK, I'd rather buy a vehicle 60% owned by the FED, an American entity, than a foreign vehicle. I don't see how punishing autoworkers (who have no say in the direction of the company) by boycotting their products is constructive.

Because in the end the FED who is a foreign entity wins. The FED is not on the USA sideline. They are part of the IMF here to suck up all they can from the American people. They are worth 300 trillion. Yes I did say 300 trillion and by what means did they do this? By the fact that they are unconstitutional and they create money out of thin air. They use your labor to gain their wealth. How nice it would be if you could just add some digits to your bank account.

[gator]

It was 60% and now it's 70%

http://bx.businessweek.com/general-motors/us-government-to-take-up-70-stake-in-general-motors/13993999839899753071-cfa7e96a5d29557c828d4acf7dbccd08/

Can you or anyone else explain the math/logic behind the deal that was offered. Bondholders hold about $27 million in GM debt while the government holds approximately $20 million, but the bondholders were expected to take 10% of the company's stock while the government got 50%? If I understand this correctly, it's no wonder they refused. I think my favorite part though was that current stockholders would be knocked down to a 1% stake in the company. While this deal is laughable, the implications are anything but. My God, where is the Obama administration taking this country?

[bluefan]

My God, where is the Obama administration taking this country?

You remember the U.S.S.R., right?

[The Michigan Man]

You remember the U.S.S.R., right?

Stalin didn't have to use a teleprompter.

[zilla]

Hate to break the news to you, but your government will not own GM. The FED will.

Michigan Man doesn't deal in facts or looking such things up.

[The Michigan Man]

Michigan Man doesn't deal in facts or looking such things up.

OK, now the peanut gallery has officially gone on the record...

[MICHDAD1]

Michigan Man doesn't deal in facts or looking such things up.

Enlighten me oh swami.

[zilla]

OK, now the peanut gallery has officially gone on the record...

Nah man, this is your favorite d-bag realschool. I changed my email address and now my account doesn't work anymore. So now I am stuck using the one I created to sell tickets with.