Wednesday, May 20, 2009

You won't be driving the road to socialism in a Chrysler

The following was forwarded to me by a co-worker. This dealership was a customer of my company's. We will be removing our equipment from them tomorrow.

Letter from a Dodge dealer
letter to the editor (Ed. No mention of the original paper was made)

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


If you remember a few short months ago when I "hinted" at the possibility of eroding freedoms and a move toward, not a socialist, a facist state you will see I am not completely nuts. News this morning is that the United States Government will soon be, for all intents and purposes, running General Motors.

Time to go lay flowers on the grave of Free Market Capitalism.

S2

1 comment:

CrackerBarrel said...

Like you, I would like to know how reducing the number of dealer franchises saves money for the manufacturer. Did Chrysler spend a lot on advertising for the franchise? It didn't own the unsold cars on the dealer's lot, or the inventory of parts. I guess Chrysler won't have to print as many brochures after the franchise reductions, but that's small potatoes.

I did read this on Yahoo news:

While GM doesn't own the dealers, the company says its network is too big, causing dealers to compete with each other and giving shoppers too much leverage to talk down prices and hurt future sales.

Of course, GM allowed all of those franchises in the first place. No one else commanded them to do it.

CrackerBarrel