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#1
05-12-2009, 05:28 PM
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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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1982 300SD " Wotan" ..On the road as of Jan 8, 2007 with Historic Tags 
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#2
05-12-2009, 05:29 PM
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Probably to dealerships in a specific line like Hummer, Pontiac and Saturn
__________________
BENZ THERE DONE THAThttp://www.peachparts.com/shopforum/...c/progress.gif 15 VW Passat TDI 00 E420 98 E300 DT 97 E420 Donor Car - NEED PARTS? PM ME! 97 S500 97 E300D 86 Holden Jackaroo Turbo D 86 300SDL (o\|/o)
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#3
05-12-2009, 05:33 PM
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an interesting read on the subject of "Government running the car companies"
http://blogs.ajc.com/thinking-right/2009/04/01/smith-wesson-lessons-for-gm/
__________________
 1983 Toyota Tercel 4WD Wagon - 1984 Mercedes-Benz 300SD 4-Speed(My Car!) 2005 C230 Kompressor 6-Speed Manual
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#4
05-12-2009, 05:40 PM
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That was also my question regarding the 800 Chrysler/Jeep dealers being closed down. It seems to me the more outlets you have, the more cars you can sell, right?
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1985 380SE Blue/Blue - 230,000 miles 2012 Subaru Forester 5-speed 2005 Toyota Sienna 2004 Chrysler Sebring convertible 1999 Toyota Tacoma
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#5
05-12-2009, 06:14 PM
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Still has to factor out to excessive overhead on GM's dime.
Fewer dealers means that you have to service fewer people due to the severe drop in demand in all product categories.
__________________
1974 240D 3.0L 4(M) - 250K -OM617.910 + 300D FW + Rajay turbo power! 1977 6.9 3(A) - 84k
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#6
05-12-2009, 07:09 PM
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I don't see how GM can shutdown a dealership. I can see them backing out of their contract with the dealership. But how can they force them to close. I mean if I owned a Chevy dealership I'd be looking to Toyota, Honda or even Kia, or some other stable company to supply the cars.
I bet the Korean companies make a push and sign contracts with these "closed" dealerships.
__________________
1983 Toyota Tercel 4WD Wagon - 1984 Mercedes-Benz 300SD 4-Speed(My Car!) 2005 C230 Kompressor 6-Speed Manual
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#7
05-12-2009, 08:00 PM
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Gotta love the government - they've cured cancer, solved poverty in America, solved literacy in America, fixed the economy, and now they're finally going to fix our car problem. Thank you Government!!!
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- Brian 1989 500SEL Euro 1966 250SE Cabriolet 1958 BMW Isetta 600
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#8
05-13-2009, 08:10 AM
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Quote:
Just teeming with efficiency and success stories.
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 1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15 '06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)
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#9
05-13-2009, 09:45 AM
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Quote:
I hear that it isn't the gov., it's GM that wants to close the dealerships because they've got too many too close to each other.
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1984 300TD
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#10
05-13-2009, 10:07 AM
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I know dealerships aren't making any money on cars because the average Joe can drive a few miles down the road to the next dealer... The 2-3 dealers wind up bidding against each other to invoice. Only idiots obsessed with their payment rather than the bottom line pay sticker.
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1985 500SL Euro w/ AMG bits 130k  1984 300SD Turbodiesel 192k  1980 240D Stick China 188k  2001 CLK55 AMG 101k  2007 S600 Biturbo 149k Overheated Project, IT'S ALIVE!!! 
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#11
05-14-2009, 01:04 PM
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Quote:
The way they closed down the local Pontiac/Buick/Cadillac/Jeep dealer in my town was that GM simply sent a battalion of 18 wheeled "portable parking lots" and repossessed the entire inventory of 120 new vehicles on the lot, each one of which apparently was not dealer-owned, but financed through GM. A few county sheriffs stood by while it was done, it happened fast.
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 1991 560 SEC AMG, 199k <---- 300 hp 10:1 ECE euro HV ... 1995 E 420, 170k "The Red Plum" (sold) 2015 BMW 535i xdrive awd Stage 1 DINAN, 6k, <----364 hp 1967 Mercury Cougar, 49k 2013 Jaguar XF, 20k <----340 hp Supercharged, All Wheel Drive  (sold)
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#12
05-14-2009, 02:31 PM
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Quote:
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#13
05-14-2009, 10:07 PM
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Anyone else see Fritz Henderson, the new head of GM, on Beck today? He seemed earnest, but I think he may be a bit overly optimistic.
__________________
Whoever said there's nothing more expensive than a cheap Mercedes never had a cheap Jaguar. 83 300D Turbo with manual conversion, early W126 vented front rotors and H4 headlights 400,xxx miles 08 Suzuki GSX-R600 M4 Slip-on 22,xxx miles 88 Jaguar XJS V12 94,xxx miles. Work in progress.
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