Recently, Crysler has announced the closing of 25% of its dealerships. Too many dealers with not enough clientel, or so they said. Almost immediately Many dealers began to point out that they were a profit and doing just fine. Further, Chrysler's profitability is only indirect ties to the dealerships which operate as independant franchises. So, what's going on?
Well, a preliminary review of the closure list revieled that they predominantly donated to Republican political causes. Only one dealer donated to Obama, and then only $200. Source.
An employee of one of the dealerships wrote:
this isn't just Chrysler's decision. They were forced into bankruptcy by President Obama. When Chrysler emerges from bankruptcy the Federal Government will be a junior partner in the new Chrysler. This is SOCIALISM! Wake up people! This isn't about business it's about politics and control. My dealership is in the top 125 out of the 3500 plus dealerships nationwide...yet we are on the list. We are not small nor are we rural. We are in a large major metropolitan area. Our new vehicle inventory alone is well over $4.0 million. Is that small? Secondly, Chrysler is already "shopping" for dealers to take over the open "points" (another name for franchise) left by the closed dealerships. Source.
Further, it's being reported by Reuters that one of the attorneys representing some of the dealerships who deposed Chrysler president Jim Press, claimed that Chrysler did not supplier the recovery plan and stated the following:
"It became clear to us that Chrysler does not see the wisdom
of terminating 25 percent of its dealers," Bellavia said. "It
really wasn't Chrysler's decision. They are under enormous
pressure from the President's automotive task force."
This is certainly disturbing if true. The Obama administration would be forcing bad decisions on American businesses soley for political vengence. Further, if Obama is closing down profitable dealership and then turn around and sell the franchise to someone else, it would be an illegal taking under the US Constitution. So, we may be witnessing bad economic policies accompanied by political bias, disrespect for the law, loss of personal freedom, that will result in further growth of govenment power at the expense of the people.