|
Automotive Discussions Car People talking about the Car Business – This is the place where it happens |
|
Thread Tools | Display Modes |
07-19-2010, 01:33 AM | #1 |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Treasury Dept. faulted for pushing GM and Chrysler to speed Dealer Closings
Well, it only took the government a little over a year to figure out something we've known here since day-one, closing car dealerships doesn't save OEMs any money.
The opening paragraph of the Bloomberg story says it all - "The Obama administration’s push to accelerate General Motors Co. and Chrysler Group LLC dealership closings, aimed at helping the companies compete, may not have been necessary and added to unemployment, a U.S. watchdog said." Here's a link to the full report - click here It would be great to see a new round of Congressional Investigations into what actually happened as it relates to dealer terminations. I'd love to see Fritz Henderson under oath explaining where the $2 Billion+ in cost savings is going to come from. While I'm happy to see a report critical of the Task Force I doubt it will bring much satisfaction to the rejected dealers who have been living with this nightmare for the past 14 months. |
07-19-2010, 06:57 AM | #2 |
Senior Member
Join Date: Feb 2010
Posts: 135
|
It just may, X. Throw a few of those former execs in a federal prison after it's been demonstrated that they flatly LIED to to Congress, and I'll bet that at least a few rejected dealers will fall asleep with a smile on their faces.
|
07-19-2010, 07:21 AM | #3 |
Senior Member
Join Date: May 2009
Posts: 548
|
Barofsky has been critical of many of the TARP programs since taking the position...he has blasted the handling of the investment banks, the insurance companies(AIG in particular), the mortgage meltdown, Fannie Mae and Gennie Mae fiasco...I don't think the administration was expecting his criticisms when they appointed him. Nice to see a government official who isn't afraid to stand up and call it like he sees it.
|
07-19-2010, 07:26 AM | #4 |
Senior Member
Join Date: Aug 2009
Posts: 518
|
Hopefully when the (R)'s retake the House and regain the power of subpoena we can have the appropriate hearings on this matter. Not expecting it to happen as no one really cares but I can dream...
|
07-19-2010, 08:25 AM | #5 | |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Quote:
In my view the Task Force had total control and they wielded their power with little regard to the consequences. (Hell, they fired GM's CEO without even consulting GM's Board of Directors.) When I think back the the President's speeches he often boasted that all parties were making sacrifices to save GM and Chrysler - the UAW, the white collar employees, the bond holders, the suppliers, etc. My bet is the Task Force concluded they needed to wipe-out 25% of the dealers just for appearances. I doubt there was too much thought that went into the ramifications of their decision - they just needed to show that the dealers got hurt too. As I've said before, I hope one of the insiders writes a book one day that details the events that took place in 2009. |
|
07-19-2010, 08:28 AM | #6 |
Senior Member
Join Date: Jul 2009
Posts: 181
|
Tarp Audit
In some small way this feels good. Someone recognizes the absolute stupidity of the dealer terminations. That being said, it probably is too much to hope for any restitution for this bold and unconstitutional move by the Task Force and the brain trust at the Treasury Dept. I'm curious to see if anyone at NADA is aware of this report and what their reaction is. When was this released? I became aware of it during the weekend which is probably not a big news time. This is more reason to hope for big changes in Washington. I can't imagine many of those who were terminated are looking for a continued status quo. I'm really trying to give it up but it's not that easy. Enough said and God Bless America!
|
07-19-2010, 08:29 AM | #7 |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
|
07-19-2010, 08:36 AM | #8 |
Senior Member
Join Date: Jan 2009
Posts: 953
|
And likewise, I hope when the next election rolls around we are able to use our resources and make the current administration / resident of the White House disappear.
|
07-19-2010, 10:23 AM | #9 | ||
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Quote:
Maybe I'm jaded, but it seems to me the NADA's trying to take credit for the results generated via CRDR. Nothing new about that. Quote:
I have heard the exact same thing from other rejected dealers.... |
||
07-19-2010, 11:53 AM | #10 |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Link to the SIGTARP Report
For those who may be interested, here's a link that will allow you to download the 45 page SIGTARP report as a pdf file - click here
I haven't had a chance to read the report yet - I just quickly scanned through it and it looks intriguing. |
07-19-2010, 02:21 PM | #11 |
Senior Member
Join Date: Jan 2009
Posts: 953
|
I got to page 25 before I almost stroked out. A quote from a GM exec stating that removing a dealership would not save money for GM - that it would most likely cost GM money.
I'm logging out now before I go on a pre-retirement Ralph-like rage, but I'd like to see the people responsible held accountable. We all knew it was lies, and now the truth has come out. |
07-19-2010, 03:29 PM | #12 |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
NADA declares defeat before the battle even begins
True to form, before the first shot is even fired the NADA waves the white flag to surrender. Here's an excerpt from Automotive News -
“I don't think we can do anything at this point; it would be like pushing toothpaste back in the tube,” said Ed Tonkin..."
In fairness, I don't know what options are available but why would the NADA give up on the first day without even putting up a fight? |
07-19-2010, 03:45 PM | #13 | |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Quote:
Based on what I was reading this morning, it appears 80% of the $2 Billion GM was going to "save" was from reduced vehicle incentive payments. Their theory was fewer dealers means higher profits for the ones that remain thereby eliminating the need for incentives. |
|
07-19-2010, 03:49 PM | #14 |
Senior Member
Join Date: Jul 2010
Posts: 149
|
“I don't think we can do anything at this point; it would be like pushing toothpaste back in the tube,” said Ed Tonkin..."
What do you expect from an association who’s vice chairman (stephen wade) was gifted a terminated Chrysler Dodge Jeep franchise and its chairman (tonkin) managed to keep one of the only stand alone Dodge stores. I've heard enough of "the train has left the station" and "the toothpaste is out of the tube" NADA needs to lead follow or get out of the way. |
07-19-2010, 06:56 PM | #15 |
Member
Join Date: Jul 2009
Posts: 70
|
Maybe the gifted dealers could join in the "shared sacrifice" and pay the dealer whose store was stolen.....kind of spread the sacrifice around.
|
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Rejected Dealer Lawsuit Being Filed Tomorrow Against U.S. Treasury | DealerLaw.com | Automotive Discussions | 17 | 04-11-2017 10:16 AM |
Is Chrysler still pushing dealers to complete Project Genesis by the end of 2011? | XDCX | Sales | 30 | 08-17-2011 10:10 AM |
Service Sales Dept. | ghostrider | Automotive Discussions | 2 | 06-06-2011 06:47 AM |
Chrysler trying to speed-up introduction of the new 300 | XDCX | Sales | 16 | 04-14-2010 02:06 AM |