Politics in terminated Chrysler franchises?

[Venkman]

I always thought it was ridiculous to terminate franchises. Dealerships are an automakers biggest customer. Saying "we won't sell you cars anymore" is simply ludicrous. Let the market decide - if a dealership isn't profitable, they'll close. Simple. As dumb as these car companies have been, I knew this had to have come from the government.

Did partisan politics play a role in the decision of which dealers to axe?



http://www.worldnetdaily.com/index.p...w&pageId=99325

[ChinoCoug]

Originally Posted by Venkman

I always thought it was ridiculous to terminate franchises. Dealerships are an automakers biggest customer. Saying "we won't sell you cars anymore" is simply ludicrous. Let the market decide - if a dealership isn't profitable, they'll close. Simple. As dumb as these car companies have been, I knew this had to have come from the government.

Did partisan politics play a role in the decision of which dealers to axe?



http://www.worldnetdaily.com/index.p...w&pageId=99325

http://www.cougarboard.com/noframes/...tml?id=4616805

Short answer is no: (% of all dealers who give to GOP) = (% of axed dealers who give to GOP)

car dealers are generally all Republican

[Venkman]

Originally Posted by ChinoCoug

http://www.cougarboard.com/noframes/...tml?id=4616805

Short answer is no: (% of all dealers who give to GOP) = (% of axed dealers who give to GOP)

car dealers are generally all Republican

Yeah, I wondered that as I read the article, thinking are any dealers really democrats?

What about the other issue, that of just terminating dealer franchises, many of them supposedly large and profitable dealers. You're supposedly a capitalist, do you have a problem with that?

[MikeWaters]

Originally Posted by Venkman

Yeah, I wondered that as I read the article, thinking are any dealers really democrats?

What about the other issue, that of just terminating dealer franchises, many of them supposedly large and profitable dealers. You're supposedly a capitalist, do you have a problem with that?

From what I have heard in the news, most dealers aren't profitable because they sell new cars. They make most of their money on service. And used cars.

So some dealers will continue on as used car dealers and provide service.

[ChinoCoug]

Originally Posted by Venkman

Yeah, I wondered that as I read the article, thinking are any dealers really democrats?

What about the other issue, that of just terminating dealer franchises, many of them supposedly large and profitable dealers. You're supposedly a capitalist, do you have a problem with that?

I'm pro-business, but not an unfettered capitalist. But car dealerships is definitely not a functioning market. You can't buy cars online because dealerships have lobbied to prohibit that. Huge barrier to entry.

[Venkman]

Originally Posted by MikeWaters

From what I have heard in the news, most dealers aren't profitable because they sell new cars. They make most of their money on service. And used cars.

So some dealers will continue on as used car dealers and provide service.

Right, but why terminate the franchises in the first place? Dealerships buy their cars. Fewer dealers means fewer outlets for consumers to buy your products. Many dealers have closed in the last few months because they weren't profitable, why not let the market continue to decide who remains as a franchisee? They will lose market share because of this...I just don't get it.

[Venkman]

Originally Posted by ChinoCoug

I'm pro-business, but not an unfettered capitalist. But car dealerships is definitely not a functioning market. You can't buy cars online because dealerships have lobbied to prohibit that. Huge barrier to entry.

I'm not an unfettered capitalist either. But they're not closing dealerships because of the barrier to entry - at least that's not what they're saying.