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PapaG

PapaG

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Hopey Changey, Amurrrica.

http://www.americanthinker.com/blog/2009/05/letter_from_a_dodge_dealer.html

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
Click to expand...
 
So, he was given roughly 26 days notice? Under residential landlord/tenant law, you are required to give at least 30 days notice. So, his multi-million dollar business is worth less than a lease on an apartment?

We're living in bizarro world.
 
This is happenning because this is a free market. The government is not the one taking the cars. That's the way the cookie crumbles in capitolism
 
bluefrog said:
This is happenning because this is a free market. The government is not the one taking the cars. That's the way the cookie crumbles in capitolism
Click to expand...

Having one's business taken from them with zero compensation is a part of the free market? I suggest you may not know exactly what a free market is.
 
It really sucks for this guy. My heart goes out to him, as I own a small business too and I can't imagine what it's like to look into your employees' eyes and tell them this news.

That said, any business owner will tell you that when you buy all your merchandise from a single vendor, you lose a ton of control over your business. It's a shame he wasn't able to diversify into other types of products.

When he says, "We did NOTHING wrong.", he may or may not exactly be telling the truth. He might have been in a no-win situation where every choice was bad. Or he might have had other business options. (For example, at some point Americans will need to buy cars from somebody. Perhaps he could've actively sought out Toyota, Nissan, etc.)

The post title seems to imply this is all part of Obama's socialist plot. It's not. It's what happens when badly run car companies fail for years, and a lot of small businesses who played by the old rules consequently get fucked over.
 
How does the blame for this fall on Obama's desk?

Chrysler ran their company into the ground and continued to make absolute atrocities like the Charger and the Magnum while other companies were making more economical and environmental options for their consumers. Chrysler declared bankruptcy and then decided to close dealers around the country.

I feel bad for this guy and his family, but he should be pissed off at the car company name on his dealership, not the government.

And in terms of legality, federal bankruptcy law supercedes state franchise laws, so franchise agreements can be terminated at the parent company's discretion.

-Pop
 
BTW--Nissan stock is up 50% year to date. Toyota is up 17%. Honda is up 32%.

There are going to be huge dealer job losses now, but the stock market seems to say that it won't go on forever.
 
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So how's that "hope and change" working out for you?
 
Shooter said:
So how's that "hope and change" working out for you?
Click to expand...

So Obama is responsible for the resulting actions of a poorly-run company going bankrupt? Quick ... name me a model that Chrysler or Dodge builds that is top-of-class.

Best mid-sized sedan?
Best pickup?
Best SUV?
Best minivan?
Best hybrid?
Best economy car?
Best luxury sedan?

Didn't think so. They have been irrelevant as a car-maker long before Obama even ran for president, let alone took office.

-Pop
 
As much as I like blaming Obama... :devilwink:

This doesn't seem like an Obama issue, or a spreading the wealth issue.

His vendor went out of business. My company is strict about always maintaining at least 2 sources as vendors for this exact reason.
 
So are you saying that the government should have given the car companies more money? Friggin Socialist
 
PapaG said:
Having one's business taken from them with zero compensation is a part of the free market? I suggest you may not know exactly what a free market is.
Click to expand...

A free market is an economic system in which a company can act without government interference.

I don't know the details of his agreement with Dodge but their actions must be within confines of their contract. Otherwise he would be taking legal action to protect his business.

This sucks but America would need more government involvement to prevent these situations. I suspect some people would cry "too much government!" if that happened. :ohno:
 
bluefrog said:
A free market is an economic system in which a company can act without government interference.

I don't know the details of his agreement with Dodge but their actions must be within confines of their contract. Otherwise he would be taking legal action to protect his business.

This sucks but America would need more government involvement to prevent these situations. I suspect some people would cry "too much government!" if that happened. :ohno:
Click to expand...

You're right, there are no free markets, except between nations.

The more the government interferes, the worse things get. Boom & bust is because we don't have free markets.

We've tried the regulation route, each one closing the barn door after the horse has run away. Maybe it's time to try true free markets and give them a chance. We know socialism is a terrible means of distributing goods and services.
 
blazerboy30 said:
His vendor went out of business. My company is strict about always maintaining at least 2 sources as vendors for this exact reason.
Click to expand...

Exactly. I own a software business where we produce our software internally. But a year ago I realized it was dumb to rely on one revenue stream to keep my company viable. I branched out into three other areas that weren't directly related to software production, even though I knew those other streams were less profitable. I just wanted to be as diversified as possible because shit happens. Computers change, consumer demand changes, my ability to support software might change. Because I diversified, now I'm in a position where if a major competitor came along and stole all my software business, I'd still be viable.

This guy is complaining because:
a) He didn't diversify
b) His one revenue source went tits up

Now it's the government's fault that his one revenue source went tits up. Sorry, but his business was always risky. I'm sorry he didn't recognize it a hell of a lot sooner.
 
I can see this guy writing a similar letter if his wife divorced him. "I did nothing wrong! How can this happen?"

Buddy, your partner just doesn't want you anymore. Takes two to tango.

barfo
 
This guy should check his franchise/distributorship agreement that he signed with Dodge. I suspect that it gave Dodge the right to terminate with four weeks' notice for any reason whatsoever. His problem is that he never thought that the clause would be executed--and that there was no accompanying clauses relating to the fate of his inventory. That's the risk he (or his father) took.

It seems to me that his contract with Dodge was an arm's length, negotiated deal. Sounds like he is suggesting that the government step in and prevent Chrysler from utilizing its negotiated contractual rights.
 
Dumpy said:
This guy should check his franchise/distributorship agreement that he signed with Dodge. I suspect that it gave Dodge the right to terminate with four weeks' notice for any reason whatsoever. His problem is that he never thought that the clause would be executed--and that there was no accompanying clauses relating to the fate of his inventory. That's the risk he (or his father) took.

It seems to me that his contract with Dodge was an arm's length, negotiated deal. Sounds like he is suggesting that the government step in and prevent Chrysler from utilizing its negotiated contractual rights.
Click to expand...

The franchise/distributorship agreement is worth less than the paper it's printed on at this point, since Chrysler/Dodge declared bankruptcy. Federal bankruptcy law supercedes state franchise laws.

-Pop
 
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