Posted on 07/21/2009 9:56:21 AM PDT by Need4Truth
WASHINGTON (AP) -- The head of the White House's auto task force is warning Congress against a House-approved plan to restore General Motors and Chrysler dealerships being closed by the car companies' bankruptcies.
(Excerpt) Read more at finance.yahoo.com ...
so... they closed SUCCESSFUL dealerships, and want to re-open bankrupt ones?
WHAT THE HELL DID THE IDIOT SHEEPLE DO THIS LAST ELECTION?????????
Where are the class-action suits of the dealer associations? The White-Crib-Engineered bankruptcy and reorganization plan obliterated the states’ franchise laws (screwed the dealers), didn’t it?
No. They want to keep open dealerhsips that sent money to Obama and close those who sent money to the RNC.
It is just that simple.
I think so. It seems congressional action is the only thing that could help them. 'Course, I don't know how a business gets going again in a recession after having been closed several months. Federal subsidies, I suppose.
I hope the country figures out soon just what an awful mistake they made in putting the Dims in charge of the entire government.
Correct, although this is a ripple effect...going across local county politics, to state politics, to national politics.
In my hometown...they had a music fest each summer, with car dealers contributing around $100k to run the operation (probably 50 percent of the funding necessary). This year? Zero contributions...with two dealers completely gone. The dealers mattered. But here’s the other side of this...people now have a deep seated dislike of GM and Chrysler...so they lose lots of future business. Ford gains....and the Asian dealers get a huge footing in the market. I also think whatever damage the White House thinks they will do to the Republicans...will be reversed by Honda, Toyota and Nissan. GM and Chrysler will have lesser sales than what they enjoyed, and thus less money goes to Democratic players in the end.
Does this explain why they disproportionately targeted the dealerships that donated to the Republican Party?
"By all measures, these companies had far too many dealers relative to the number of cars they were selling," said Bloom. He noted that the average Toyota dealer sells four times as many vehicles as an average Chevrolet dealer.
Everyone knows auto dealers don't make money on cars sold. They make money on cars serviced. Of course GM needed many more dealers than Toyota.
The Obama administration warned the U.S. Congress on Tuesday that a House-approved plan to restore shuttered General Motors and Chrysler dealerships would threaten the auto companies' bankruptcies and recovery.
Well, 'nuff said then, eh!
Congress won’t listen to the WH on this one.
I don’t know the average number of people that work at a dealership in total but for grins lets say it is 100. So you close a dealership, and 100 people lose their jobs.
Each of those people have spouses, parents, in-laws, (adult) children, cousins, friends, etc... Let’s say each dealership employee that loses their job can influence 9 others to vote against their congressman for not saving their dealership.
That’s 10 votes per employee (or 1000 votes per closed dealership) on average the congressman loses for each dealership that is closed.
Let’s say their are 10 dealerships closed a congressman’s district. That’s 10,000 votes the congressman is going to lose.
10,000 votes? Suddenly backing Obama’s plan to close dealerships doesn’t make much political sense for congressmen (not if they plan on keeping their seats.)
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