Please contact your Senator and Congressman

[MJNOR1]

There is a resolution sponsored in the House of Representatives - H.R. 2743 that will restore the automobile dealer's rights under franchise laws which will hinder GM and Chrysler's ability to arbitrarily eliminate dealers thereby saving tens of thousands of jobs......including mine!

Your support would be greatly appreciated so please contact your Congressman and Senator and encourage them to co-sponsor this bill.

Thanks in advance.

[Lerincho]

Unfortunately I am unable to do so as I am not at liberty to speak with Legislative people ebcause of my job. Otherwise I am always more than willing to tell the government how to do their job.


Best of luck to you.

[MJNOR1]

Thanks Lerincho.

[Thrudh]

There is a resolution sponsored in the House of Representatives - H.R. 2743 that will restore the automobile dealer's rights under franchise laws which will hinder GM and Chrysler's ability to arbitrarily eliminate dealers thereby saving tens of thousands of jobs......including mine!

Your support would be greatly appreciated so please contact your Congressman and Senator and encourage them to co-sponsor this bill.

Thanks in advance.

If there are franchise laws that give automobile dealers rights, why does a new law need to be passed?

[Lerincho]

If there are franchise laws that give automobile dealers rights, why does a new law need to be passed?

it's a law to repeal the previous resolution. and techinically it's not a law either. it's a resolution to dissolve the previous resolution, if i am thinking of the same one he is.

[Junts]

Unfortunately I am unable to do so as I am not at liberty to speak with Legislative people ebcause of my job. Otherwise I am always more than willing to tell the government how to do their job.


Best of luck to you.

Wait, what do you do that precludes conversation with legislators? Not even sitting federal judges have that kind of restriction.

[Lerincho]

Wait, what do you do that precludes conversation with legislators? Not even sitting federal judges have that kind of restriction.

not so much what i do, it's with whom i am employed.

[MJNOR1]

If there are franchise laws that give automobile dealers rights, why does a new law need to be passed?

The automakers are in Chapter 11 reorganization and are using the bankruptcy umbrella to circumvent franchise laws....this bill will restore the rights dealers had prior to bankruptcy and the automakers will need just cause to eliminate dealers.

[KoboldKiller]

not so much what i do, it's with whom i am employed.

I knew you were a member of G.I. Joe!

[Impaqt]

So this bill will Force the struggling GM and Chrysler to keep Struggling dealerships who are not contributing to the success of the company open?

Heres my question....

WHen GM "Closes a Dealership"

Can they actualy force the closure of the dealership or are they just pulling the ability for you to sell GM Vehicles?

[Lerincho]

So this bill will Force the struggling GM and Chrysler to keep Struggling dealerships who are not contributing to the success of the company open?

Heres my question....

WHen GM "Closes a Dealership"

Can they actualy force the closure of the dealership or are they just pulling the ability for you to sell GM Vehicles?

they are pulling the right to sell those certain vehicles.

[Arkat]

they are pulling the right to sell those certain vehicles.

So "in theory" a dealership could negotiate a franchise agreement with another car company, sell their cars instead, and keep their businesses open?

If so MJNOR1, I think your boss should begin to explore other options rather than relying on Government to "fix it."

[Impaqt]

they are pulling the right to sell those certain vehicles.

Which no doubt includes the Gravy Train Warranty service as well I assume....

I feel for the OP.. This economy is tough right now.....

I simply cant get behind any kind of legislation that forces a Company to keep under performing Outlets open.

GM has essentially sold the same cars with 4 or 5 different nameplates on em for years now. Theres so many dealers I can understand how it is impossible to keep them all open and hope to ever turn a profit.

[Lerincho]

So "in theory" a dealership could negotiate a franchise agreement with another car company, sell their cars instead, and keep their businesses open?

If so MJNOR1, I think your boss should begin to explore other options rather than relying on Government to "fix it."

yes in theory. will they do it? no.

[Lerincho]

Which no doubt includes the Gravy Train Warranty service as well I assume....

I feel for the OP.. This economy is tough right now.....

I simply cant get behind any kind of legislation that forces a Company to keep under performing Outlets open.

GM has essentially sold the same cars with 4 or 5 different nameplates on em for years now. Theres so many dealers I can understand how it is impossible to keep them all open and hope to ever turn a profit.

BINGO


I agree with Impaqt here, the government in the case in which there is not a monopoly should have NO right to tell you HOW and WHEN to do your business. Just as the I feel the government has no right legislating sports, specifically the House Resolution by Barton about making it illegal for the BCS to call their winner a National Championship.

[Arkat]

Just as the I feel the government has no right legislating sports, specifically the House Resolution by Barton about making it illegal for the BCS to call their winner a National Championship.

I disagree here. I think one of the places FOR Government is to protect the People from fraud.

[Xalted_Vol]

The constitution protects the military personal to be active in our democracy. Military personal cannot wear their uniforms at protests tho. Thank God for the constitution and the ACLU who protect our rights every day. The constitution gives you that right no one else.....don't forget that ever.

[Unknownperson]

So "in theory" a dealership could negotiate a franchise agreement with another car company, sell their cars instead, and keep their businesses open?

If so MJNOR1, I think your boss should begin to explore other options rather than relying on Government to "fix it."

I actually think the issue is the government is trying to fix a problem they created. Many of the dealerships that are being closed are very profitable. The dealership pays GM for the right to carry their name, they buy all the cars upfront from GM. I still can not figure out how it is beneficial to GM to close the dealerships. The more dealerships out there the more cars they sell, it is not GM's problem if the dealership can not sell the cars, they have already been paid.

If the government was not involved in this bankruptcy, I do not believe a single dealership would be closed. It just does not make any sense.

On a side note, it is possible for the dealership to get a franchise with another car company, but you are assuming that the area the dealership is located in, is not already surrounded by the other car companies, which is normally the case.

If the government was not involved with this whole process from the begining I would side with the car company trying to make a profit, but since this whole bankrupcty is governement driven, I am going to side with the franchises because what is happening does not make economic sense.

[Impaqt]

I actually think the issue is the government is trying to fix a problem they created. Many of the dealerships that are being closed are very profitable. The dealership pays GM for the right to carry their name, they buy all the cars upfront from GM. I still can not figure out how it is beneficial to GM to close the dealerships. The more dealerships out there the more cars they sell, it is not GM's problem if the dealership can not sell the cars, they have already been paid.

If the government was not involved in this bankruptcy, I do not believe a single dealership would be closed. It just does not make any sense.

On a side note, it is possible for the dealership to get a franchise with another car company, but you are assuming that the area the dealership is located in, is not already surrounded by the other car companies, which is normally the case.

If the government was not involved with this whole process from the begining I would side with the car company trying to make a profit, but since this whole bankrupcty is governement driven, I am going to side with the franchises because what is happening does not make economic sense.

You really think these dealerships have Paid for all these cars on their lots up front? Are you Kidding me? SOMEONE is financing those cars to the dealerships. Whether its GM or GMAC or someone else.. those cars certainly arent "Paid For"

thats where the problems comes up....

Dealer A has 400 Cars on their lot. ANd has sold 90 cars the last month. thats 310 cars that they cant pay for at the end of the month..... 310 cars that GM doesnt get paid for that month... Most likely they aint gettin their check for all 400 of em.....

When theres 10 dealers that are al within 50 miles of each other ALL in the same boat, the problem just amplifies itself. now you got 10 Dealers with excessive inventory and no means to pay the financing.

if there were Half as many dealers, they would be moving more cars per dealer and thus increasing the ability of that smaller number of dealers to pay for their inventory.

[Arkat]

Actually, in essence, car companies help the dealerships on the financing front by giving the dealers enough money to pay for at least three months of financing up front. This is called a "holdback." If you buy a car, say a week after it arrives on the lot, that holdback is pure profit for the dealership. Many times that holdback is the reason you can buy a car at or below invoice price (dealer cost) and the dealer will still make a profit on it.

http://www.safecarguide.com/gui/neg/holdback.htm