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You Can't Keep a Good Brand Down... But You Can Try

Travis's picture




 

GM today reported that they will reinstate over half, 600 of the 1,100 dealership franchises they told to get lost last year- in an effort to keep the other some 5,000 dealerships "healthy and profitable."  The lucky 600 will be getting letters asking to stay with the automaker, that's if they haven't already closed their doors forever due to the fact that 1) car sales suck despite an upbeat report earlier in the week 2) some people would argue that GM cars suck and finally 3) the GM brand may be discontinued forever a la Pontiac, Saturn, and Hummer.

A consortion of dealerships have been fighting the Detroit giant, citing they've been treated unfairly and that GM was vague in their decisions and thoughts on what dealers are actually profitable, and which ones are not.

Chrysler too, which slashed almost 800 of it's franchises is also reconsidering the cuts; according to the Associated Press "the decision was a compromise meant to avoid federal legislation that would require that the showrooms be kept open."

Under the revised cutting procedures, dealers would "get face-to-face reviews, binding arbitration and faster payments to help dealers slated for shutdown."

As published by the Associated Press on Yahoo!:

"Congress-brokered talks between dealer groups and the automakers began in September. But those talks stalled over disputes about the review process for targeted dealerships and other issues. Looming over the fight has been the threat of federal legislation to deal with the closures. Lawmakers warned that if a deal wasn't reached, that legislation would move forward.

The White House has opposed the legislation over concerns that it could hurt GM's and Chrysler's efforts to rebound from their government-led bankruptcies."

I guess Congress figures, they're not done launching torpedos at Toyota- better keep some of these domestic dealerships open to sop-up the overage from Toyota's once ivory, and now bloodied domestic tower of safety and reliability.

 

 

 

 

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Fri, 03/05/2010 - 18:55 | 255554 Anonymous
Anonymous's picture

"the threat of federal legislation to deal with the closures"

Because in government, all of those on the left and many/most of those on the right believe they know what is best and can manage ANYTHING (auto company, health care, retirement savings, etc) better than any of the helpless rubes (aka citizens / voters) outside the federal government.

Sadly most in America want government to control more and more -- and government is glad to oblige.

Most folks just are not too big on liberty and personal responsibility. Nor do they want to tolerate any level of pain or consequence to their personal actions -- which has been manifestly evident over the past 20 years or so. They love being an entitled victim and demand government "do something" about it. Pathetic.

Fri, 03/05/2010 - 19:40 | 255619 E pluribus unum
E pluribus unum's picture

automobile dealerships = huge campaign contributions

 

These stupid fucks never learned what GS always knew. Use the government to kill your competition so you have a monopoly

Fri, 03/05/2010 - 20:22 | 255668 Anonymous
Anonymous's picture

...Most folks just are not too big on liberty and personal responsibility. Nor do they want to tolerate any level of pain or consequence to their personal actions...

The banksters have taught the people well.

Sat, 03/06/2010 - 09:03 | 255984 Anonymous
Anonymous's picture

This problem with most Americans pre-dates the banking crisis by many years.

While understanding this site has singular focus on crucifying all things banking, the combined contributions of government and borrowers to the mess equal or exceed banks / lenders.

Fri, 03/05/2010 - 21:03 | 255700 Anonymous
Anonymous's picture

You nailed it. Period.

Sat, 03/06/2010 - 11:26 | 256041 Anonymous
Anonymous's picture

Farmers, oil companies and many other industries have had Congress act as their tits for more than 20 years.

Fri, 03/05/2010 - 18:56 | 255555 Anonymous
Anonymous's picture

could you please write on something non-automotive???

Fri, 03/05/2010 - 19:29 | 255597 asdf
asdf's picture

why? Since the blog exists (since the early days on blogspot), Travis has always written about cars (and some other stuff). And although I can't really get rid of the feeling that some of his writings are hidden advertisements, I like them nevertheless.

Fri, 03/05/2010 - 21:07 | 255704 Anonymous
Anonymous's picture

+1 Travis. Write whatever you want. I enjoy your edge, and appeal to the consumer in all of us.

Fri, 03/05/2010 - 19:56 | 255633 Travis
Travis's picture

I'll write about anything you'd like- as soon as you stop commenting under "Anonymous."  As for everyone else- thanks for reading as always...  and have a great weekend! 

Sat, 03/06/2010 - 03:41 | 255936 Al Gorerhythm
Al Gorerhythm's picture

Rite on Travis!- Right?

Sat, 03/06/2010 - 13:02 | 256144 Slewburger
Slewburger's picture

Since you're taking requests.

Not sure if youre interested.

http://jalopnik.com/5473942/3-tesla-execs-dead-in-palo-alto-plane-crash

combined with:

http://www.pehub.com/63397/tesla-ceo-took-private-jet-to-washington-dc/

Tons of loans/tax exemptions/investors and still no production vehicle to sell.
Worth looking into.

Fri, 03/05/2010 - 19:05 | 255567 Anonymous
Anonymous's picture

I see it as the initial stages of bloating of government agencies.

ONce a government bureaucracy is created, to survive and thrive the bureaucracy continuously lobbies to expand the fiefdom and scope of power.

The 660+ dealerships are natural choices for immediate expansion.

The various kingdoms in central northern Europe continuously did this, expanding the ranks of votchina, pomestie and husaria to increase the number of cavalry horses and equine estates to increase the dependency of the elite landholding classes to the crown.
The question if these new GM servitors are gaining heriditary or single lifetime grants from the crown is yet to be answered. We will know in the coming months as the death tax comes up for renewal. If Obama does return to pre-Bush tax laws and increases income taxes on those making under $250000 a year, most of these dealerships will go under when the current generation of owners/corporations retires/dies/merged in the next few decades.

Lito

Fri, 03/05/2010 - 19:16 | 255575 litoralkey
litoralkey's picture

 

I see it as the initial stages of bloating of government agencies.

ONce a government bureaucracy is created, to survive and thrive the bureaucracy continuously lobbies to expand the fiefdom and scope of power.

The 660+ dealerships are natural choices for immediate expansion.

The various kingdoms in central northern Europe continuously did this, expanding the ranks of votchina, pomestie and husaria to increase the number of cavalry horses and equine estates to increase taxable estates, and increase the dependency of the elite landholding classes to the crown.
The question if these new GM servitors are gaining heriditary title or single lifetime grants from the crown is yet to be answered.  We will know in the coming months as the death tax comes up for renewal.  If Obama does return to pre-Bush tax laws and increases income taxes on those making under $250000 a year, most of these dealerships will go under when the current generation of owners/corporations retires/dies/merged in the next few decades.  Lord only knows there is no historic concept of contract law involved here, we could just as well see Democrat politicians and union bosses divvy up the GM dealerships as war booty towards the end of Obama's term.

Lito

 

http://mises.org/daily/2683

 

The Task Confronting Libertarians

Mises Daily: Saturday, December 15, 2007 by

[This essay is taken from Chapter 24 of Man vs. The Welfare State (1969).]

Fri, 03/05/2010 - 19:27 | 255596 Careless Whisper
Careless Whisper's picture

I guess Congress figures, they're not done launching torpedos at Toyota

Congress isn't competent enough to know how to push the button. Toyota is doing it to itself.

http://jalopnik.com/5484610/toyota-owners-filing-unintended-acceleration...

reservations now being accepted...

http://current.com/items/91657476_reserve-your-ford-fiesta-now.htm

 

Fri, 03/05/2010 - 19:39 | 255616 Catullus
Fri, 03/05/2010 - 20:18 | 255661 Lothar the Rott...
Lothar the Rottweiler's picture

No, deliberately editing to get the story you want.  The MSM is all kinds of phucked up like this.  I have asked everyone I know if they have either been in or witnessed this unintended acceleration phenomenon, or if anyone in their social circle has.  So far, not one yes answer.

This is complete BS, just like Audi was.

Fri, 03/05/2010 - 19:47 | 255627 Anonymous
Anonymous's picture

"The White House has opposed the legislation over concerns that it could hurt GM's and Chrysler's efforts to rebound from their government-led bankruptcies."

Translation: we don't want any mandates that will cost Cerberus Capital any dough while they continue their bust-out operation.

Fri, 03/05/2010 - 20:02 | 255640 Anonymous
Anonymous's picture

White House was not against the legislation. The political calculus was it could say it is against the legislation (to help hide its massively leftist tendencies) because it knew GM would change its decision on the 600 car dealerships. It knows this because government runs GM [recall how PresBO single-handedly had the CEO removed].

The White House knows how to play the cards.

Fri, 03/05/2010 - 20:16 | 255658 knukles
knukles's picture

The vast majority of terminated dealers were republican donors.  Majority of those retained, democratic donors.  It's in the public domain.

Majority of dealers are independents, effectively costing GM and Chrysler nada (Ward's Auto/Dealership Reports)

All politics.  Just like US owned GM mentioning that problem of recent recall was linked to Toyota suppliers.

Made no economic sense to close the dealerships originally; traditional Chicago style politics at taxpayer expense.

Fri, 03/05/2010 - 20:56 | 255695 Rollerball
Rollerball's picture

until you're re-branded.

Fri, 03/05/2010 - 23:01 | 255795 Stranger
Stranger's picture

Hey remember that old car company, Chrysler?

I wonder what happened to those guys.

Sat, 03/06/2010 - 10:09 | 256010 Headbanger
Headbanger's picture

Fix It Again Tony bought them out.

Fri, 03/05/2010 - 23:03 | 255797 MarketTruth
MarketTruth's picture

So tell me where in the UNITED STATES CONSTITUTION does it say the government should buy or prop up private companies? Where does it say about the government closing legally held private companies/business franchises?

SHOW ME THE LAW!

Sat, 03/06/2010 - 03:45 | 255937 Al Gorerhythm
Al Gorerhythm's picture

There ain't one, so build a bridge and get over it. TIC [Tongue In Cheek].

Sat, 03/06/2010 - 03:32 | 255934 Anonymous
Anonymous's picture

Will you people quit whining? The people need someplace to buy thier Zaporozhets.

Sat, 03/06/2010 - 10:32 | 256017 Anonymous
Anonymous's picture

"We only wounded it. And now it's angry."

http://www.theatlantic.com/business/archive/2010/03/toyota-drags-rivals-...

Whoops. Never mind, the taypayer will cover everything!

Sat, 03/06/2010 - 13:13 | 256160 Anonymous
Anonymous's picture

All Car Companies should have came forward with a full disclosures of what car were dangerous. Instead of waiting for a huge media blitz and tons of public pressure. I never seen so many car companies GM - NISSAN - TOYOTA - HYUNDAI having recalls all at the same time. I had no idea my car was affected until I looked on http://www.carpedalrecall.com and found I had a bad Anti Lock control unit on my 2008 Pontiac G8 , my co workers Ford Truck had a recall also. So be careful

Sat, 03/06/2010 - 14:57 | 256248 Anonymous
Anonymous's picture

I watched both these Hearings and I must say I am disgusted !
This was clearly nothing but a persecution of competitor of the now government owned remnants of the american car industry. Sheer desperation. So, things must definitely NOT look good for GM & Chrysler.

Furthermore, the hypocrisy is beyond any words :
in the third panel of the "government oversight" hearing they had a female literally crying because she lost some family.

However, a week or so before the hearing, America killed some two dozen Afghan civillians. Where are the hearings their relatives can cry ?

If an american is killed in a Toyota, all congressional hell breaks loose, if Afghan civillians are killed by Americans, nobody cares ! Seems Afghans are not human beings !

I wonder whether americans have any idea how this is perceived outside the US.

Werner

Sat, 03/06/2010 - 16:07 | 256303 tahoebumsmith
tahoebumsmith's picture

This government launched witchhunt against Toyota is getting old. Now GM announces that they are going to save the world from collaspse? Give me a flippin break! Lets talk about the thousands of Saturn, Oldsmobile, Hummer and Pontiac Stores that are closing and never re-opening because they discontinued the lines? Maybe they need these 600 dealers to take the place of all these lost franchises. GM is a total joke! For years they lost money and turned their head the other way. Back in its hayday you could call the GM Headquarters in Detroit and ask for the president of headrests? Do you know what they would say? Which side, the drivers or passenger? They layered their company with so much fat they totally sucked every dime out. So this is why they deserved the bailout because they were such good business people and looked out for their employees? I didn't think so.. The UAW is the reason taxpayers now own GM! They bullied a weak socialist into believing the whole auto industry would collaspse if they went under..So much for Capitalism in America. We all know the Unions have offices in the White House so even if if is a total waste of taxpayers dollars they will spend the money every time to bail them out. Obama needs to worry more about the people then the Unions! GM will come back to the trough again and again until we finally say enough. They build a great car however they run their company like our govrnment runs the country... In the ground! When they are done publicly stoning Toyota for their own gain and realize how much business they have cost to State revenues, part manufacturers and Toyota Dealerships they will wish they had taken a more reasonable approach! Does anybody know what Toyota did last year to their employees in San Antonio when they stopped Tundra production due to oversupply? While GM and Ford laid people off Toyota sent their employees out into the community and did community projects like cleaning up parks to painting over graffiti at the underpasses. Toyota is more American then GM is now! They produce more vehicles in America then GM does and while GM was busy trying to corner a market in China, Toyota picked up the slack in America and built the plants to employ the people GM and Ford were laying off. They better start realizing how much impact Toyota has on 100's of thousands of Americans before they cost them their jobs as well!

Fri, 04/16/2010 - 08:36 | 303645 mark456
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