May 16, 2009

Ever seen one of those old old maps?

Back when they didn't know what was over there past where they had explored...what did it say? "Here there be Monsters" We just had a Huge company get forced into bankruptcy by the Govt, then it took that private company; remember, Chrysler was no longer publicly traded. The Govt took that private company, and did not give it to the employees. No, it was handed to another business...a Union. We were on the edge of the map there. But now, a company has determined that it can decide which of it's venders will and will not survive. When you go to the local car dealership, that is not a business which is owned by the car manufacturer. Sure, it is franchised, meaning that there are contractual obligations on certain aspects of the business, but those dealerships do not belong to Chrysler. I mean, I guess it is no good to own a car dealership if the car manufacturer will not sell you cars, but the cars are bought by the dealership. Chrysler does not give the cars to the dealer. Certainly they are bought on short term loans and may be financed by the financing arm of the manufacturer, but apparently they will not accept payment from the dealers. Local dealers are being told their doors are going to be closed and their inventory is going up the road to parts unknown and I have not heard of the dealers being compensated. Now it would be one thing for Mopar to simply cease selling cars to certain dealers. Surely some were not profitable and were behind on bills, or whatever. But many were profitable. That is not what is happening though, they are having their businesses ripped out from under them.

Let's say...well here is a good example...let's say I had a Western Auto Store. Everything I sell, I have to pay for (even if it is short term credit) so it is mine. But, Western Auto basically sells the same products as Sears minus clothes and jewelry. Inventory is sears brand product. Now let's say that Western Auto goes bankrupt. Which did happen. Do they make me close my store? No. What they do is say, "you can use the western auto name for X years and after that you have to change the name. Do they tell me that I have to ship my product elsewhere to another town's store? No. They tell me that when I sell out of some product line, I will have to find another supplier. They do not take my shop, I may not have anything to sell, but it is still my store.

Well from what I can tell that is exactly what the fedzilla is doing to the dealerships...

We are off the edge and:
Here there be Monsters...
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