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Obama Administration Cuts Two DeVos Car Dealerships
I suppose there's a teensy tiny element of truth in the headline because the federal government has an ownership stake in the American auto companies because of all the bail-out money.

However, I think this is a silly post because of the conclusion that the headline implies. The purpose of the post seems to try to invoke animosity towards the Obama administration for inhibiting our beloved DeVos's ability to do business.

MichMan, earlier I expressed my support for your mission of providing us with Amway-related news from West Michigan. However, I'm in favor of a more balanced, objective approach to the project. Otherwise you're just going to tie up IBOFightBack, making it tougher for him to go Platinum and beyond. Wink

IBOFightBack, sorry that I don't have time to help you provide balance to the right-wing viewpoints that are often expressed here. Most of the time you're like the solitary Kung-fu fighter taking on a relentless barrage of attackers. Obviously I'm in no position to give you advice. It may be wrong of me to impose my own perspective based on my experiences and limitations on others. Anyways, I'm wondering if there is some way to protect yourself from frequently engaging in the debates in the Anything Goes section, unless it's a source of recreation or relaxation for you. How much time do you spend in conversation with MichMan and others on the web versus your family, your mentors, your clients, and your business partners? When you go Platinum and beyond your credibility as an Amway ambassador on the web will increase, will it not? Personally I find it difficult to imagine how a person can be both a top ABO and a virtual Kung-fu fighter on the web. The problem (from my perspective, maybe not yours) is that the critics and those with opposing political and philosophical views have you at their beckon call: they write, you respond. I think some contributors to these forums enjoy the sport of debating with you, because you are good at it.
I am still trying to figure out how Chrysler employees or stockholders will benefit if the Treasury Department closes dealerships like the ones owned by Dan DeVos. And still trying to figure out how idling the 180,000 employees at these dealerships will help save Chrysler one dollar.

The president of the Automobile Dealers Association is baffled. He says that the dealerships don't cost the car dealers any money. In fact they pay in lots of money.

This move, like Ford said today, will only drive more customers to them.

Mr. Farley was particularly critical of the Chrysler plan, noting how it would affect millions of consumers with little warning.

“It seems very abrupt and unplanned,” he said. “You don’t orphan four million customers overnight without some fallout.”

Some of those customers, primarily those in rural areas, will migrate to Ford dealerships, he said. “It really depends on how G.M. and Chrysler handle these orphan owners,” he said. “If they don’t give them a lot of attention, it will result in consumers going to other brands.”
ajgannon Wrote:The problem (from my perspective, maybe not yours) is that the critics and those with opposing political and philosophical views have you at their beckon call: they write, you respond. I think some contributors to these forums enjoy the sport of debating with you, because you are good at it.

Thanks for the concern and support AJ! It only happens when I'm stuck on the 'web for other reasons. I'm a good multi-tasker. Smile I also enjoy it!

When I am no longer required to be stuck on the web for ridiculously extended periods you will see significantly less of me here, and more of me on stage Smile
Those are good points, MichMan. I expect that many of the owners of dealerships that got the ax are asking "Why me?"

I'm not opposed specifically to right-wing, conservative, liberal, left-wing, religious, or secular viewpoints. I'm opposed to procrastination. It's my biggest weakness. When I was talking to IBOFightBack, I was really talking to myself. In general I like your posts, MichMan. Smile
ajgannon Wrote:I'm opposed to procrastination. It's my biggest weakness.

A couple of weeks ago I was going to post that exact thing, but I put it off because I got too busy.. things happened... and you know....I got a little behind.
aj, here is more reasons why these dealership closings are troubling. The US has made crappy cars for years. These dealers have stayed with them. Now they are shut down by the government, costing 189,000 jobs and forcing many dealership owners into personal bankruptcy. Dan DeVos can survive this. He has deep pockets.

But how would you feel if the government just took away YOUR family business, forced YOU into bankruptcy and into selling your family home?

FITZGERALD: Yes. Well, ordinarily, I wouldn't tell that you they're in last place in "Consumer Reports" rankings, although you probably already know that. But we wouldn't say that normally on television.

VAN SUSTEREN: How's GM doing?

FITZGERALD: Well, they'd be in last, too, if it weren't for Chrysler.

VAN SUSTEREN: So what's going on? Why is Chrysler in last place?

FITZGERALD: Well, because they don't put enough money into their cars. They put too much into their pocket and not enough into the car.

VAN SUSTEREN: What happened to Chrysler, though? I mean, it used to be a car that sold. I mean...

FITZGERALD: Oh, yes. When I opened my Chrysler store in the '60s and the '70s, 23 percent all of the cars recommended in "Consumer Reports" were Chrysler models -- 23 percent. Forty-three percent of the cars were GM models. Those two guys had two thirds of the recommended models in "Consumer Reports." You know what they've got today? Chrysler has 6 percent. GM has 8 percent.


FITZGERALD: The imports have 75 percent.

VAN SUSTEREN: Why? What happened?

FITZGERALD: Well, what has happened is that these brilliant managers out of the Wharton School and other places have figured out that they know more about the business than anybody else, and so they keep taking money out of the product and selling it with smoke and mirrors. And that might work with soap or canned goods, but it doesn't work with automobiles.

VAN SUSTEREN: So if you can always sell them on steep discount, who's taking the hit, Chrysler or you?

FITZGERALD: I'll take the hit. Once Chrysler's in bankruptcy, everybody gets hurt but them. They stop hurting, they hurt everybody else. That's how that works.

VAN SUSTEREN: Because that's -- I mean, for the individual car dealership who only sells Chrysler, I mean, it must -- I mean, that's the end of the game.

FITZGERALD: Oh, it's personal bankruptcy because they keep -- all that money is borrowed. And to get the loan, those guys signed personal guarantees. You're going to wipe out whole families. This is a very, very, very serious matter. It's awful what they're doing. And they're using your tax dollars and mine to abuse people that way.

And I know this administration doesn't realize that's going on. This is a bunch of whiz kids from Wall Street. They've got a lot of quick answers to very complex problems that they really don't understand. They think they do, but they don't..... We are not overhead to GM or Chrysler. They make a profit on us if we never sell a car. They make a profit if we never sell a car just on the fees we have to pay them.
That has to be some of the most twisted logic I've seen in a while

1. GM makes crappy cars
2. GM is going to shutdown, forcing virtually ALL dealers into bankruptcy
3. The government elects to step in to keep it going, and hopefully improve, so only SOME dealers have to close
4. This wasted of taxpayers money is to an abuse of the poor dealers who have to close
5. The government is forcing these dealers into bankruptcy

So ... if the government didn't waste taxpayers money and ALL dealers went into bankruptcy, that would be fine by the dealers
Or ... If the government spent MORE taxpayers money so that NO delaers went into bankruptcy, that would also be fine

Will closing 30 percent of the GM and Chrysler dealerships help GM and Chrysler sell more cars? No.

Will closing 30 percent of the dealerships help GM or Chrysler make more money? No.

Will closing profitable dealerships help GM or Chrysler sell more cars? No

Will closing 30 percent of the dealerships encourage people to drive longer distances to purchase a GM or Chrsyler car instead of a Ford or a foreign model? No.

Are people more likely to purchase a new car from GM or Chrysler knowing that the closest dealer service is now an hour away? No

Will closing 30 percent of the dealerships and idling 189,000 employees at GM and Chrysler dealerships help them sell more cars? No

Are those 189,000 people likely to purchase a GM or Chrysler any time soon? Not bloody likely.

Are they going to lose customers from this? Yes. Lots of them.

(BTW, your logic fails you again. When you start with incorrect premises you come up with incorrect conclusions.)
Oh, I'm sorry, I didn't realise that the ONLY change being made was to close some dealers Rolleyes

Letter from a Chrysler Dealer:

My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.

We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.

I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.

On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.

Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.



This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.

This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.


I beseech your help, and look forward to your reply. Thank you.


George C. Joseph President & Owner Sunshine Dodge-Isuzu
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