Posted on 05/28/2009 10:26:13 AM PDT by chuck_the_tv_out
The blogosphere has, once again, proven itself a worthy investigator. Unsurprisingly, that same investigatory spirit is nearly nonexistent in the mainstream media.
This morning on Fox and Friends, Michelle Malkin gave an interview on a story that she and HotAir have been following for several days (video embedded to the right). Apparently, many of the Chrysler dealers that have been chosen for closing have made a habit of donating money to Republicans, or nobody at all – and those who donate to Democrats are miraculously safe.
Why is it miraculous? The odds are massively against this pattern emerging – to the tune of 1/10,000,000 of 1% [h/t Doug Ross]. By comparison, you have a better chance of being struck by lightning this year ...
(Excerpt) Read more at newsbusters.org ...
Doesn’t that mean they would have to rip the hood ornament off of each and every car on the lot?
“...Yet Rattner, his wife, Maureen White, the former national finance chair for the Democratic Party, and their four children enjoy plush lifestyles because of the success of his Quadrangle Group hedge fund, which manages Mayor Bloomberg’s $16 billion fortune. His fund has been under scrutiny in a pension scandal being probed by state Attorney General Andrew Cuomo.
Rattner, 56, who earned more than $100 million from Quadrangle ..”
At least the liberals can be comforted that Rattner is not one of those “super rich, nasty, republican mean people”.
“...his Quadrangle Group hedge fund..”
There is no way to lose in the party of no rules...
Help me understand how you make more money by shutting down sales outlets that are owned privately.
It’s not just contributions. Look at the areas of the ones that closed and the ones that get to stay open-—blue vs red areas.
That link isn’t working for me. Says, “page not found”. I’d love to look at it.
As I said to one of my auto engineering gnomes.
The likes of Chelsea Clinton and all the Limo-Liberals are about making the quick buck flipping paper, i.e. basically an unregulated mutual fund i.e. hedge fund.
I told said engineer, they hate you, You are a rube, notice they do not send Their kids to become Engineers, Nurses, Physician's Assistants, those that are truly doing and getting it done.
Those especially that design and thing through how a car works and to make it work better. My guess is the likes of Rattner doesn't have the brain matter to engineer a front suspension system.
They detest those that can do, so they try to rule, G_d help us....
Here are both lists:
http://www.allpar.com/news/index.php/2009/05/chrysler-dealers-to-be-cut-and-kept/
1. Less consigned inventory. A LOT of automotive inventory, even though it’s on the lots, is still owned by the manufacturer.
2. Less competition. When a guy sells only a few hundred cars per year, you can damn well bet he’ll low ball anybody he can. Not that higher prices would help Detroit autos, but there are execs that will rationalize the move.
what’s your problem
>>>Help me understand how you make more money by shutting down sales outlets that are owned privately
Fewer dealerships helps eliminate price competition and boost the image of the manufacturer if they are better capitalized and able to provide better service. Honda and Toyota have been able to outsell Chrysler with about a third of the number of dealerships, and their cars face less discounting and higher resale.
Some excerpts from a Bloomberg Article: http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aVXrNfdjNdQQ
Plans announced last week to shed almost 2,000 retail outlets are designed to bolster the survivors, GM and Chrysler said. Reducing competition from stores with the same brands is supposed to allow the remainder to boost prices and profit, and to reinvest in their businesses to keep adding customers.
That echoes the strategy of Toyota, the world’s largest automaker, in growing to second behind GM in U.S. market share. U.S. stores for Toyota and Honda Motor Co. each averaged more than 1,100 sales in 2008, almost three times as many as GM’s and Chrysler’s, consulting firm Grant Thornton found.....
The strategy at Toyota is pretty simple: keep the dealer count rational, don’t locate them too close to each other and maximize their units per outlet. A profitable dealer can invest in their dealership and personnel. Average new-auto revenue was $14.3 million for GM dealers and $12.8 million for Chrysler last year, compared with $40.9 million for Toyota, based on data from auto-research company Edmunds.com. Dealers also make money on used vehicles, parts and service.
Each GM store averaged 444 new-auto sales, while Chrysler had 405, according to consulting firm Grant Thornton. Ford Motor Co. was similar, at 483. Japan’s three biggest automakers dwarfed those totals, with 1,200 for Toyota, 1,150 for Honda and 764 for Nissan Motor Co., Grant Thornton found.
It's not so much shutting them down as denying them inventory.
One of the local Chrysler dealers, after getting a "Dear John" letter, is in negotiations to sell Nissans instead. Others may be able to swing deals with Toyota, Honda, etc., and it wouldn't surprise me if the Chinese automakers see an opportunity to swoop in.
But if they are only closing dealerships owned by Republicans then (you know democraps are idiots) they are going to close the GOOD dealerships.
I think they are smart enough to start to sell someone elses’s cars, rather then just go home and flip burgers.
I won’t buy a union made vehicle period.
Wait till the remaining dealers have FIAT alongside the Chrysler logo.
That ought to bring customers running.
Chrysler terminated the dealer relationship for a bunch of dealers. It looks like the decision as to who to terminate may have come from the Administration.
As part of the termination, the ex-dealer is no longer authorized to perform warranty repairs -- a big profit center.
I haven’t digested it all yet but thank you for the post.
FReepers are the best of the net!
ahh but as the need to dealers inevitably happens, they will be assigned by politically determined quota.
IF no dealers are needed, they will be federally subsidized.
After Dealergate, imagine what they’re going to do with the Census.
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