Taking from one dealer giving to a new dealer


This is an email that is going around the internet. It is not the first time that I have heard that the dealerships that Chrysler is shutting down. It is not the first time I have heard that products that the owner had bought from Chrysler is being taken from they by Chrysler to be given to another dealer without compensation to the owner. If it is happening to them, then why will it not happen to us. They decide that we don’t deserve what we have worked for and decide that someone else deserves it more. Wait, isn’t that redistribution of wealth. Yep, Mr. Current President told Joe the Plumber that is what he wanted to do before he lied and claimed he didn’t say it.

“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.

HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?

THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY

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.

HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?

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

Sincerely,

George C. Joseph
President & Owner
Sunshine Dodge-Isuzu”

1. How could this happen in America? I understand terminating business relationships, but normally there’s compensation involved.

2. Since the dealers are the direct customers of car manufacturers, how does terminating a significant amount of that customer base help promote profitability? Quite a few of the terminated dealerships are profitable, meaning they are able to pay the manufacturer. The only thing here that makes sense to me is if the manufacturer is somehow rebating too much to the dealers to stay in business. If that’s the case, then reduce the rebate or payment & let the dealerships sink or swim with that economic reality.

3. Small towns all over the US will be dramatically affected by the dealerships being closed down involuntarily. Lost jobs, lost service, lost support to community organizations. Towns that will have to travel many miles now to get service, let alone purchase a vehicle. Towns that may not survive themselves.

4. Most dealers have made substantial loan commitments to build & maintain those dealerships. They will have no choice but to default, which will have a ripple effect to the customers & investors of the banks that made the loan.

5. Now I read that the federal government will own GM. Besides the power of force, where in the Constitution or any of our laws is this allowed?

Here is a link about the email

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