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Old 05-12-2009, 05:28 PM
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MS Fowler MS Fowler is offline
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Join Date: Jan 2003
Location: Littlestown PA ( 6 miles south of Gettysburg)
Posts: 2,278
Government running the car companies

So I hear that the government will require GM to close 2500 dealerships.
Someone will have to explain how that is a good idea to me.

From what I understand, when Starbucks announces that it will close 1000 stores, they can show how that saves them money.
Not so with auto franchises--the entrepreneur invests his own money; not GMs. IOf they make money or lose money, GM is not involved other than supplying the cars that got sold. In fact dealerships pay fees to GM; GM does not pay the dealer. So the net of closing 2500 dealerships will be to reduce capital flowing into GM.

So why close them?
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