[DeTomaso] How can this happen in America

Ed Pike erpike at ymail.com
Sat May 23 09:14:48 EDT 2009


It can happen. That is the reason for franchise laws and contracts. Some automotve manufacturers franchidse agreements are for a specified period of time like 5 years. Others are indefinite but all have reasons built in for terminations. No individual would invest 3 million plus in land and a building without some guarantee of product for a period of time. The problem now is with Chrysler in bankruptcy and GM headed there, the bankrupcy court can void those contracts. Even if they didn't void them there would be little or no money left to "buy" a dealers franchise back. It seems to me the real issue is the fact that at the governments direction, dealers are forced to close rather than letting the market work. If a business person is no longer making money everntaully they will sell or close. The way it is being handled, all those dealers on the "list" have had their business value reduced to nothing with no chance to salvage anything. 

I thought the whole reason for the government to give Chrysler and GM funding was to save jobs and the economy. Just image the trickle down effect of all these closings!
ed...

 




________________________________
From: "pantdino at aol.com" <pantdino at aol.com>
To: detomaso at realbig.com
Sent: Saturday, May 23, 2009 12:07:26 AM
Subject: Re: [DeTomaso] How can this happen in America


I am not a lawyer, but I find it hard to imagine that a company could 
sell a dealer cars and parts and then unilaterally revoke that dealer's 
ability to sell those items on to the consumer without having to take 
repossession of those parts and credit the dealer accordingly.  Ditto 
possibly the company-required remodeling.

I suspect the court system will straighten this out if the politicians 
don't beforehand.  The latter will want to brighten their image when 
word of this kind of thing gets out.

Jim Oddie

-----Original Message-----
From: dyogi at hawaii.rr.com
To: detomaso at realbig.com
Sent: Fri, 22 May 2009 11:13 am
Subject: [DeTomaso] How can this happen in America










Unbelievable story.  This is a letter written to the editor of a 
website called
the American Thinker:


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

The website articel can be seen here:  
http://www.americanthinker.com/blog/2009/05/letter_from_a_dodge_dealer.html

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