Why are they closing dealerships?


I have stayed out of the auto makers bailout recently because I refuse to ever buy an American car because my experience with them has been horrid. I buy Hondas because as my mother tells me I have good luck with them. I know my tax dollars are being handed hand over foot to the auto makers to help them while they decide the only way out is bankrupcy. But, that is not the issue for me on this fine day. It really has to do with the forced closing of dealerships. First of all, why did they not ask dealerships if they wanted to close before just deciding to close some and not others. Usually, if a company is going to have a lot of layoffs they offer early retirement before they start with the layoffs. But, that really isn’t the issue either.

As I began to think about it. I thought about how much of a profit each dealer really makes off each car that is sold. Granted, I know that they get kickbacks and such for the number of cars sold and there was something about selling cars faster got them incentives as well. But, even with all that it really isn’t a great amount of money. What I heard a long time ago is that the dealerships really make their money on service and parts. So, I am wondering why that isn’t being figured into as a way to ensure that dealerships become more stable.

Also, have they forgotten that by taxpayers spending money, including on buying new and used cars, will stimulate the economy. Or are they really wanting to stimulate the economy? Are they really trying to create a big government that will control every part of our lives?

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