Originally Posted by prochargedpony
With all the dealerships that are closed you are talking about a loss of thousands upon thousands of jobs lost. How do you think that is going to affect them? That is loss of sales alone all those people out of work, so no new cars sales out of that, plus loyalty loss. Most dealerships don't make jack shit for profit on new cars, it is the new car sales, that leads to loyalty for customers to return to purchase used cars where they make huge profits. If the dealerships are providing a service and gm tells them that they have to front their own inventory cash they should be allowed to keep their franchise name, I will bet most of them are just going to stop the franchise of gm, chrysler, or whoever and just reopen with a different franchise. Which as stated above is going to be an asian car most likely. Ford wants all their dealerships to be open as ford/lincoln/mercury and ones that can't won't be able to renew franchise.
No, I get that the closing are going to hurt the entire cycle, my point is it is either 2,000 dealerships, or the entire company. Your choice.
If your bet is correct (which it most likely isn't) then there will be not be that many jobs lost because they will just start selling Toyota instead of Chrysler, no need to fire anybody right?
I don't think Ford or any of the bigger foreign auto makers are really looking to buy the bottom of the barrel dealerships. I think their best bet is a new company trying to get it's name in the game, Tata and the like. (I don't think Tata has a car legal for sale in the US, but that is the type of company I am thinking would want a foothold in the US Market.
Until the "Big 3" or what ever is left over, get out from under the parasitic union labor contracts, they're done... due to no fault other than their own.
The continuing arrogant attitudes displayed by the US domestic car dealerships, bolstered by their OEM support dwindling, and piss poor after sale service has all but signed the death warrant for many stores, jobs and ancillary businesses within the US Auto industry.
In the US, Ford may survive, Chrysler is pretty much done, with GM not far behind.... they'll likely regroup and and rebuild themselves outside of the US, and who could blame them?
The do have fault, they agreed to the contracts. As much as I think the contracts are ridiculously slanted in the worker's favor, GM signed them. Who can be mad at someone for wanting to get what they were promised? It was stupid to sign them in the first place.
If I were to buy a GM vehicle and signed a loan with GMAC, they would expect the money from me. It is the same with the workers IMO.
Now the workers need to pull their heads out of their butts and realize it is $20 less an hour or no job, and if they choose to be hard headed on this (which they have) then they will get the latter. It is a raw deal, but this is a recession, changes have to be made.
"A government big enough to give you everything you want, is strong enough to take everything you have."
-Gerald Ford/Thomas Jefferson
"A Republic, if you can keep it"
- Benjamin Franklin
The way to peaceably remove elected officials who deviate from the constitution of the United States of America...