I always thought to sell more goods, you built bigger pipes, opened more outlets, tried to reach more people. So when I heard Chrysler was going to reduce the number of dealers it had, it didn’t make any sense to me. It didn’t make any sense to a number of Chrysler dealers either. Story after story appeared in SOME media outlets highlighting the confusion of dealers, and the questions they were asking are legit; Why them, and what criteria was used to choose them; and HOW was this going to help Chrysler sell more cars later, which would help it regain strength?
I was watching a dealer interview last night, and was reminded of “fleet” returns also. To make fleet sales work, there must be a large enough dealership network available to accept the sheer quantity of fleet leased vehicles for used car sales. The ratio he said was 4:1 Off lease to new vehicles. If there is no way for the rental companies, and large corporation fleets to sell off their old leases or do trade ins, then they will likely purchase less new.
Then there was the government jumping in to “help” GM and Chrysler by “loaning” BILLIONS of dollars so that Detroit could last a few more months, and let it be Obama’s problem. The only thing is, it plays into the plan to farm any new crisis to an authoritarian advantage. GM, and Chrysler bought into the possibility their plight was acknowledged, Cerberus group cashed out this year, and left the remaining husk of a once great company to fend off the suppliers and smaller investors who saw their holdings become worthless.
Chrysler could have declared Bankruptcy (as I and many like me advocated) last year, and would have maintained a level of autonomy from that dictatorial regime which is forming in Washington. GM faces a similar fate as it is expected to announce bankruptcy shortly, as it has already been milked by those with talented hands. GM dealerships are now facing a similar round of closures.
But wait.. there’s more! What about those dealers again??
Considering the “coincidence” of closings of Chrysler dealerships having a parallel with political donations for “the One,” or lack thereof. In answering of some flippant Washington post reporter’s comments, Michelle Malkin asks:
Well, why don’t you use all your professional journalism training and find out the answer, Mr. Pearlstein? And why don’t you look at the flip side of the question — as “amateur” bloggers have been doing — and investigate the circumstances of the protected dealers? – (follow though some of the links for some incredible albeit sickening discoveries)
Of course.. how about some real journalism from those supposed protectors and defenders of liberty in the free press? Opinion jockeys like myself, are quite literally the only ones digging through the muddy reality of the bottom feeding Washington elite. Is there no standard bearer for the truth within that which we label the mainstream press? Is there no one who can properly document the underlying destruction failed policies of government bring?
Michigan, once proud manufacturer of quality automobiles, exporter of industrial greatness, now sits idle with even the greatest exodus it has ever seen, with those leaving looking for work elsewhere, and a forgone unemployment of 23% to boot. Idle, and crumbling, and as promised, is quite aptly being “blown away.”
