Free Republic

As many as 100,000 Americans who lost their jobs, or will soon, because of GM and Chrysler dealership closings can thank Barack Obama and his "mandate for shared sacrifice," according to a top Obama official. In a scathing report on the federal auto industry bailout, Special Inspector General Neil M. Barofsky notes that the Obama administration rejected initial automaker plans which would have required relatively minimal dealership closings, insisting instead on far more drastic cuts -- as many as two thousand dealerships between the two corporations. (snip) And Barofsky's report even questions whether the closures would lead to any real...

Video of James Anderer during “Bulls and Bears” – Fox Business News, December 29, 2009 Description: Former Chrysler Dealer Jim Anderer breaks down the continued legal action against the auto manufacturer.

Subject: Fw: Car czar To: This is unbelievable. This could be a scandal of epic proportions and one that makes Nixon's Watergate or Clinton's Monica Lewinsky affair pale by comparison. Why was there neither rhyme nor reason as to which dealerships of the Chrysler Corporation were to be closed? Roll the clock back to the weeks just before Chrysler declared bankruptcy. Chrysler, like GM, was in dire financial straights and federal government graciously offered to "buy the company" and keep them out of bankruptcy and "save jobs." Chrysler was, in the words of Obama and his administration, "Too big to...

YPSILANTI TOWNSHIP, Mich. – As Gene Butman Ford opened its doors Saturday, salesmen outnumbered the shoppers looking at a depleted stock of cars and trucks, and it didn't appear that many customers were ready to buy. Like many dealers across the country, the dealership in Ypsilanti Township, Mich., west of Detroit, is suffering from a Cash for Clunkers hangover, and Sales Manager Paul Grahl isn't sure when it will end.

General Motors Corp. is dropping the franchises of 70 percent of Cadillac dealerships nationwide and southeast Wisconsin is no exception, leaving only two area dealerships confirmed as continuing beyond 2010 — Metropolitan in West Allis and Crest in Brookfield. Metropolitan Cadillac, in fact, is running commercials urging customers whose dealers are closing to switch to its dealership. “My understanding is that there are a lot of Cadillac stores closing,” said Metropolitan president Max Stephenson. “The only two that are staying open are Metropolitan and Crest.” General Motors will not disclose the identities of dealerships that are closing. Only one area...

Immediately following Obama's coup at General Motors, and near-takeover of Chrysler as well, there was about two weeks of news coverage of the shocking number of dealerships summarily, and seemingly arbitrarily, put out of business. The demand for explanation of why and how one dealership was killed, while another was spared execution, was ever so briefly loud, then quieted, and finally silenced. This front page story moved to the back pages and, in short order, to oblivion - and the questions it raised were never answered. Case in point: Ron Marhofer, the owner of Marhofer Chevrolet in the little burg...

A coalition of consumer groups is calling on the U.S. Department of Transportation (DOT) to ensure, as the agency winds down the Cash for Clunkers program, that dealers are not "double-dipping" and getting paid twice -- once by their customers and again by the government. During the past several weeks, the rejection rate for Cash for Clunkers transactions has hovered around 80 percent. Many dealers jumped the gun and entered into a high volume of contracts in July, before the rules governing the program were issued and before any deals were approved. Since then, the program has been overwhelmed, causing...

* Dealer: Sales increase have been great, ‘like someone turning on a faucet’ * Edmunds.com CEO: Clunkers hangover coming as future sales expected to plumet * Dealer: Great intentions, but not prepared for paperwork * Despite gains in fuel economy, program a small blip (fraction of 1%) of overall gains for the country Watch video: http://www.cardealerreviews.org/?p=116702

Frustrated with delays, rejections and computer-system crashes, several New Hampshire auto dealers are making car buyers pledge to cover rebates if the federal government doesn't come through with checks under the Cash for Clunkers program. Auto dealers say they are doing so because the federal government is a clunker when it comes to sending out rebate checks of $3,500 or $4,500 per car. The New Hampshire Auto Dealers Association created the draft agreement earlier this month and sent it to members, said President Peter McNamara. Some dealers aren't using the agreement. Others are negotiating the agreement into the deal. McNamara...

WASHINGTON — AUG 21, 2009 — The federal cash for clunkers Web site for dealers crashed for part of the afternoon because of the government’s efforts to increase online capacity during the final days of the program, a Transportation Department spokeswoman said. At 8:00 PM ET, the website was restored for most dealers. However, some dealers have been reporting sporadic outages.

<p>WASHINGTON (AP) - The Obama administration plans to end the popular $3 billion Cash for Clunkers program on Monday, giving car shoppers a few more days to take advantage of big government incentives. The Transportation Department said Thursday the government will wind down the program on Monday at 8 p.m. EDT. Car buyers can receive rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models.</p>

Some New Mexico auto dealers have backed out of the cash-for-clunkers program and more may do so as the federal government takes its time providing cash reimbursements. Dealers across the state are owed more than $3.6 million, according to a dealers' group which says that so far Uncle Sam has only written three checks totaling about $14,000.

Dealers are pulling out of the program due to worries about repayments and limited availability of fuel efficient cars. But customers are losing interest as well

Survey of 800 Dealers: * 97% of dealers who responded, say the government is not reimbursing fast enough * 13% of dealers have dropped out the program because the government is not reimbursing fast enough and overall concern payment problems * 87% percent of dealers are concerned the money will be exhausted * 3% of CARS program deals have been reimbursed * 66% of dealers have not received one payment from the government Full survey results:

U.S. Transportation Secretary Ray LaHood assured car dealers Wednesday that they will be reimbursed for the money they have fronted to customers buying vehicles under the Cash for Clunkers program. LaHood was responding to complaints over a backlog of rebate payments. Dealers must cover customer rebates out of pocket and wait for reimbursement from the federal government. Some have said their reimbursement requests have not been approved, leading to a cash crunch. That’s key because dealers typically borrow money to put new cars on their lots and must repay lenders within a few days of a sale. “I know dealers...

A New York dealership group says hundreds of its members have left the Cash for Clunkers program, citing delays in getting reimbursed by the government. The president of the Greater New York Automobile Dealers Association says about half its 425 members have stopped offering rebates from the program because they can no longer afford them.

A New York dealership group says hundreds of its members have left the Cash for Clunkers program, citing delays in getting reimbursed by the government. Source: toyota.com With an EPA estimated 50 miles per gallon on the highway, the Toyota Prius is one of the most popular clunker purchases. -------------------------------------------------------------------------------- The president of the Greater New York Automobile Dealers Association said about half its 425 members have stopped offering rebates from the program because they can no longer afford them. Mark Schienberg says the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made,...

NY Dealers Pull Out Of Cash For Clunkers Program Auto Dealerships Withdraw From Government Program, Citing Reimbursement Delays NEW YORK (CBS) ― Hundreds of auto dealers in the New York area have withdrawn from the government's Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday. The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They're also worried about getting repaid. "(The government) needs to move the system...

Politicians have been quick to crow about the success of the Cash for Clunkers program and its stimulative effect on automotive sales, and compared with dumping over $80 billion into AIG’s black hole, I suppose Clunkers seems like a home run. Thousands of consumers have benefited, cashing in their trades for $3,500 to $4,500. But most of the auto dealers have been left trying to get reimbursed by the hastily conceived bureaucracy. For some, it’s hard to work up a lot of sympathy for car dealers. Aren’t these the same miscreants that folklore suggests are less fun to experience than...

<p>Rep. Joe Sestak says only 2 percent of claims have been paid and that four of every five applications have been "rejected for minor oversight."</p> <p>The federal government has only reimbursed auto dealers for 2 percent of the claims they've submitted through the popular "cash for clunkers" program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.</p>

Recordpub.com Marhofer closing in Stow is a "shock' Owner: Dealership having "exceptional' year in vehicle sales By Mike Lesko Stow Sentry Associate Editor STOW — Ron Marhofer could not believe his eyes. “I read it two or three times. I was shocked and surprised,” he said Wednesday, after being informed in a letter by General Motors that Marhofer Chevrolet in Stow would lose its Chevrolet franchise next year. Marhofer said the letter is confidential, but it said GM would not renew his franchise agreement as of October 2010. The company has been in business in Stow since 1933 and is...

Rival Warlord Gangs Fight Over the Spoils: Harry and the Pelosicrats at war with strongman Hussein al Hope bin Change! Dispatches from the fighting: Under legislation that has rapidly gained support, GM and Chrysler would have to reinstate more than 2,000 dealerships that the companies had slated for closure. House Majority Leader Steny H. Hoyer (D-Md.) and several other congressmen spoke in support of the dealers. More than 240 House members have signed onto the bill, supporters said. The administration, however, did force GM and Chrysler to streamline their operations before it invested more money in them, and it was...

“There is absolute frustration across the board,” Alex Kurkin, a lawyer based in Miami who represents several car dealerships, tells The Lede today. “As of this morning, they’re not really confident about any deals, and no one can give them advice about what they should be telling their customers.” Mr. Kurkin tells us that the government Web site where dealers are supposed to register their deals has been crashing, and the dealers haven’t been able to plug in their information. Barry Magnus, the general manager of DCH Paramus Honda, told us he was owed more than $80,000, and he wondered...

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.

The House passed a Treasury appropriations bill last week that includes an amendment reversing President Obama on the closure of nearly 800 Chrysler car dealerships and more than 2,000 GM dealerships. The amendment sponsor was Republican Steve LaTourette of Ohio. 215 Democrats and 4 Republicans voted for the overall package. Bipartisanship! The most snort-worthy reaction from the White House: The White House said Wednesday it strongly opposes the measure, arguing it would “set a dangerous precedent, potentially raising legal concerns, to intervene in a closed judicial bankruptcy proceeding on behalf of one particular group.”

If George W. Bush had ordered the firing of the CEO of a major corporation, even though he had no constitutional authority to do so, and then given the jobs to his party's contributors, would you have approved?

In this CNN interview, this car dealer does a great job defending common sense http://www.youtube.com/watch?v=e60VhXBo1S8&eurl=http%3A%2F%2Fpub29%2Ebravenet%2Ecom%2Fforum%2Fstatic%2Fshow%2Ephp%3Fusernum%3D2442810129%26frmid%3D8%26msgid%3D1035701%26cmd%3Dshow&feature=player_embedded

Terrific interview via CNN video...

It seems Obama's star power is fading rapidly. The Treasury Appropriations bill was passed 219-209 yesterday in the House. The roll call shows that the 219 is 215 dems and 4 pubs. Tucked away in the bill is a provision that is a bit of extortion: No money can be used to obtain a financial ownership in any car manufacturer if that manufacturer deprives a car dealer of its economic right under its dealer agreement.

BUTLER, Mo. — Buy a truck and get a free AK-47 gun. That's the deal a Missouri truck dealer is offering new customers who buy a pick-up truck in August. Mark Muller, owner of Max Motors in Butler, says he knows people will be bothered by the promotion. But not to worry, Muller is not handing out free guns. Instead, he will give buyers a voucher to use at a gun store after they obtain a license to carry a concealed weapon. The AK-47 is an upgrade on a previous promotion in which Muller gave away vouchers for the price...

WASHINGTON - A spending bill passed by the U.S. House would force General Motors and Chrysler to restore franchise agreements with approximately 3,000 dealerships. Dealers across the country were cut loose as part of restructuring plans approved by bankruptcy courts. Meanwhile, the House Financial Services committee is seeking documents from the Obama administration on the "bailouts of General Motors and Chrysler.” Lawmakers have questions about how the President's auto task force reached its decisions to send the auto companies into bankruptcy.

The White House on Wednesday blasted growing, bipartisan congressional efforts to aid closed auto dealers but stopped short of threatening a veto. An amendment to put dealers back in business survived a challenge in the House Rules Committee on Tuesday and is to be voted on as part of the financial services appropriations bill this week. The Obama administration said reversing dealer closings would set a "dangerous precedent, potentially raising legal concerns, to intervene into a closed judicial bankruptcy proceeding on behalf of one particular group at this point." The statement is consistent with the administration's position during the bankruptcies...

"The No. 2 Democrat in the House promised Tuesday to keep legislative pressure on General Motors Corp. and Chrysler LLC to save hundreds of auto dealers slated for closure or downsizing, but the No. 1 Senate Democrat promptly poured cold water on the idea. As auto dealers fanned out across Capitol Hill Tuesday to lobby their members of Congress, House Majority Leader Steny H. Hoyer , D-Md., said he wants to keep a plan to help the dealers in the Financial Services appropriations bill (HR 3170) the House is expected to consider this week. "My own view is the provision...

Three hundred and eight years later the birthplace of the modern automotive industry is to lose the last downtown auto dealership that sells cars bearing his name. Dalgleish Cadillac -- which has sold the luxury car brand in Motor City for General Motors Corp since 1954 -- was informed in early June that by September 2010 they must close as part of the automaker's restructuring plans. The dealership's owners say the stunning news came in a letter signed simply "General Motors Corporation."

Jim Press, Chrysler's charismatic deputy chief executive, went to Capitol Hill last week and spoke solemnly about the "very difficult decision" of terminating 789 of the automaker's dealers across the country. He assured members of a House committee that the company's executives had "taken every step to make this a soft landing for the dealers involved" and promised to help them as much as possible. *snip* "You have two choices," Press told the group, according to reports. "You can either help us or burn us all down." Many dealers would long remember the warning that followed to those who refused...

HOBART, Ind. – At the end of the 81-year marriage, the Isaksons said goodbye by turning off the lights. The partnership was over. The Chrysler sign went dark. It was an unceremonious finale to a four-generation bond between one family and one company, but it was not a surprise. Rob Isakson had known for weeks his dealership was on a Chrysler hit list — the cuts were part of the troubled automaker's survival strategy...

Lawmakers Chide Automakers Over Dealership Cuts GM Issues State-by-State Closings List By Dan Eggen and Kendra Marr Washington Post Staff Writers Saturday, June 13, 2009 Out of the 1,323 General Motors dealers targeted for elimination, the most will come from Pennsylvania. Ninety dealerships will be forced to wind down in the state. Pennsylvania is followed by Ohio with 79, Illinois with 66, California with 65 and New York with 60. GM, which has declined to name individual dealers, released the state-by-state list for the first time yesterday to a House Energy and Commerce subcommittee. And lawmakers vented their frustration, demanding...

"My grandfather paid for Carlisle Chevrolet from his labors. My father paid my grandmother for Carlisle Chevrolet through his efforts. It took me nearly 20 years to pay my parents for Carlisle Chevrolet. It took GM and Chrysler a mere 24 hours to take Carlisle Chevrolet from me."

Many have claimed the federal government was playing fast and loose with the rules surrounding its takeover of General Motors and the circumstances surrounding the selection of which dealerships would remain open and those that wouldn't. Fox News' Gretchen Carlson came forward with evidence of this through a personal account of dealership closings.Carlson, a co-host on the Fox News Channel's morning show "Fox & Friends," appeared on Glenn Beck's June 9 program and questioned the logic behind the decision reached by the government and General Motors (GM) to close down a dealership that has been in her family for 90...

Many have claimed the federal government was playing fast and loose with the rules surrounding its takeover of General Motors and the circumstances surrounding the selection of which dealerships would remain open and those that wouldn't. Fox News' Gretchen Carlson came forward with evidence of this through a personal account of dealership closings. Carlson, a co-host on the Fox News Channel's morning show "Fox & Friends," appeared on Glenn Beck's June 9 program and questioned the logic behind the decision reached by the government and General Motors (GM) to close down a dealership that has been in her family for...

Peter J. Walsh, the owner of Walsh Dodge in Jersey City, N.J., started out selling used cars in his hometown 28 years ago after the birth of his daughter. He slowly built his business, and felt as if he'd finally made it when he earned his Chrysler shingle in 2000. But on Tuesday, Walsh Dodge will lose that shingle—as will 788 other dealers across the country. Auburn Hills, Mich.-based Chrysler has asked a bankruptcy court for permission to terminate the franchise agreements of about 25 percent of its dealers. Chrysler needs to cut costs, and claims current sales levels don't...

It is patently false to claim that Chrysler has not made public the criteria that it used to determine which dealerships it would close. In a May 14th Motion, Chrysler attorneys outlined the criteria that were factored into those decisions. The criteria were initially defined in Project Genesis, which was an analytical and statistical data model developed by Chrysler in 2008 to improve its viability going forward. The following is taken from pages 17 and 18 of that motion. The Debtors' Extensive Qualitative Assessment of Each Dealership 37. Project Genesis and the selection of dealerships to be included in the...

House Majority Leader Steny H. Hoyer and Reps. Chris Van Hollen and Daniel Maffei have circulated this letter today ... ... to Obama expressing “growing concern” with the closures of GM and Chrysler dealerships across the country. The lawmakers say they’re asking for a “compelling justification as to how closing healthy dealerships will make the automakers more financially sound. The lawmakers are asking for lawmakers to sign this letter by 5p.m. today. Full letter below: Dear President Obama: We are writing to express our concerns about General Motors’ and Chrysler’s decision to close profitable automobile dealerships across the country, and...

Video - Rep. Ted Poe

House Majority Leader Steny H. Hoyer and Reps. Chris Van Hollen and Daniel Maffei have circulated this letter today ... ... to Obama expressing “growing concern” with the closures of GM and Chrysler dealerships across the country. The lawmakers say they’re asking for a “compelling justification as to how closing healthy dealerships will make the automakers more financially sound. The lawmakers are asking for lawmakers to sign this letter by 5p.m. today. Full letter below: Dear President Obama: We are writing to express our concerns about General Motors’ and Chrysler’s decision to close profitable automobile dealerships across the country, and...

From Harry Reid to Obama: Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. . . .

Zero Hedge covers a court hearing involving terminated Chrysler dealers with some follow-up on its previous analysis of Dealergate and possible Clinton-tied cronyism in Arkansas. Tyler Durden points to one very interesting declaration from Ethel L. Cook, a Chrysler dealer based in Little Rock. Click on his post for the PDF link to the full testimony, but here’s an excerpt: Having reviewed the pattern of assumption and rejection of dealers throughout their region, I have detected a pattern: In every market where there is a dealership connected with former Penske Automotive executive Steve Landers, or his new automotive partnership with...

A parade of Chrysler dealers slated to lose their franchises took the stand Thursday in the automaker's bankruptcy protection case, one choking back tears, as they touted their sales and service records and questioned how they were chosen for termination. Just under 20 dealers were sworn in at the beginning of the day, but only about 14 testified, and no Chrysler officials took the stand. Arguments on the motion are scheduled for Tuesday.

Jack Fitzgerald, owner of nine Washington area dealerships -- seven of which are on the chopping block by General Motors and Chrysler -- left his headquarters on Rockville Pike mid-morning yesterday, armed with a black bag full of thick consumer reports, pie charts and line graphs on cars. In the past three weeks, he's been a virtual one-man PR machine, meeting with local and national politicians and blitzing the media in a desperate attempt to save his business.

At a hearing yesterday at the Senate Commerce Committee, a few of the beleaguered Chrysler and GM auto dealership owners got to voice their frustration with the Obama administration and their heavy-handed control over the auto industry.   One of the witnesses was John McEleney, Chairman of the National Automobile Dealers Association.  “I have represented dealers in three meetings with the President’s Auto Task Force as well as in conference calls, and have provided at their request many documents and data,� McEleney said.  “At our meetings with the Task Force, we have repeatedly explained the fact that dealers are not...