Posted on 05/20/2009 6:46:46 AM PDT by yankeedame
By Neal Boortz @ May 20, 2009 8:24 AM Permalink |
A listener pointed me to this letter from a Dodge dealer down in Florida. Thought you may enjoy ....
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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
As long as what Chrysler did, regarding this dealer, it did with the approval of the bankruptcy court, then it’s actions still adhere to the laws, standards and history of U.S. law.
The purpose of Chapter 11 bankruptcy IS to work out a way for the company that files bankruptcy to remain viable, which includes the courts’ ability to alter or revoke contracts that the company would otherwise have to remain committed to.
Keep in mind that the dealership networks in each state have been very good at working their state politicians in the support of state laws regarding the contracts between auto manufacturers and auto dealers, to the clear advantage of the auto dealers (outside of bankruptcy proceedings) and making it very expensive, for the auto makers, to end those contracts. When GM ended the Oldsmobile brand it costs them billions just to end their contracts with Olds dealers.
That said, and knowing how der leader operates, IT IS appropriate to ask WHO ALL was involved in making up the lists of which dealers Chrysler asked the bankruptcy court it be allowed to end its relationship with.
To actually find that answer will probably take a new POTUS and a special prosecutor.
Welcome to Chicago Mr. Joseph. Thank you for your contribution.
“It was basically a self serving act to save themselves and their friends and someday we may actually find out the identity of those who pocketed the trillions of taxpayer money.”
You got that right. And its arcane enough that the majority of people just roll their eyes and go back to sleep. But we were robbed in the greatest crime in history!
I don’t think it was planned to happen but once the cards started falling, what an opportunity!
Brevard County, Florida ping.Let me know if you want on or off this ping list.
(not associated with the county government)
Tragic loss for Melbourne. Property will be empty, local taxes lost and all the jobs too.
Wonder how far I will have to go for DODGE service? Merritt Island or Vero Beach?
My son in law sent this to me as well....
...what a pity!...I drive by there all the time.
Doesn't that have something to do with the franchise fees the dealers paid to the manufacturer, securing their right to be dealers?
First thread on this:
http://www.freerepublic.com/focus/f-news/2254042/posts
Analysis of Campaign Contributions by Chrysler Dealerships who are Scheduled to Close
http://www.freerepublic.com/focus/f-news/2254275/posts
VERY telling.
I understand closing dealerships.
What I don’t understand is giving away someone else’s dealership to a stranger.
Something’s not right about this story.
I don’t think you understand this man’s issue. Nobody took his land or his building. He lost his Chrysler Franchise...or in other words, his right to sell new Chrysler vehicles with dealer incentives and his Authorized Chrysler Repair Center.
This is a tragedy, and my prayers go out to this poor man, his family, his employees, and all the other dealerships who face the same dilemma. This is not the America where I was born and raised. :(
From a search of Dodge dealers, yep. Sell your Chrsyler / Dodge product now before the resale value sinks below the scrap value. And for heavens sake, don’t buy a Government Motors replacement.
IF the plan is to combine the two nearby operations into a single super-dealer with Chrysler AND Dodge, there is some sense to be found here. That Joseph gets screwed in the process is what sucks - a forced marriage between the two dealerships would have been much better than sinking Joseph and letting Gator reap the spoils (assuming that's what will happen). The Gator owner has a chance to do right here and be fair with Mr. Joseph.
Unless they're nuking Gator too and then it's back to bizarro land again. Makes no sense to leave a dealership hole in Melbourne.
He bitched and complained about it, but I got the impression that something in his franchise agreement made it perfectly legal and acceptable for Chrysler to do this.
He re-branded himself as a dealership for high-end imports, and apparently did quite well for years (they just moved to a new, bigger location a couple of years ago) before the recent downturn in the economy really cut into their sales.
The jeep dealer is on the cut list too!
You are right a “hole”...or is that a-hole decision? LOL
Grand Caravan ex with power doors and room for the wheelchair, but averages over 20 MPG. So I’ll just keep it and drive it to extinction...almost 100K and still looks like new inside and out.
It’s a 2002 and was “used” (purchased in 2006 and 75K miles then) to me so unless I win the lottery ( don’t even buy tickets ) this is my ride for the future.
I am sure a private garage will fix what “breaks”.
How is this the Democrats’ fault? I am no fan of their econcomic policies (amoung others) but I don’t understand how this can be blamed on them?
Chrysler and GM for years of poor product design and quality. For over building their dealer network. For giving unions too much. For getting into a position where they had to makes deals with the devil (gov’t).
I am operating under the assumption that the dealerships entered into contracts with the manufacturers that said that the manufacturer could drop the dealer.
I should also add that the remaining dealers should be better off in the end (if the COs make it through this). Do you propose that companies retain the status quo even when it’s not working? In the end efficient companies with good products will make it and others won’t. Sorry if this is too much for you to handle.
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