Change we can beleive in

[joecoolfreak]

Joecool, your subway comparison is not very good. Food franchise have very little overhead compaired to cars. Food is something that everyone has to have, new cars are not. Food isnt something that you as a consumer more than likely have to finance, nor is it a wear item that requres maintaining.

None of that makes it a bad analogy. He is a bad businessman and deserved to go under. It doesn't matter whether or not the franchise was food or cars. None of those points had anything to do with the comparison I was using.

What has killed his business is the fact that Chrysler will not warranty his new cars. He "could" sell them and recoup the loan for his inventory, but what consumer will buy a car that the manufacturer will not warranty in any way? Hardly any dealership actually "own" the cars that they sell. Not to mention the parts that he has in house that may or may not be paid for that are now almost worthless. His dealership not being able to do warranty work on new cars means that the consumer would have to pay out of pocket for any work/parts needed.

No, what killed his business is the fact that he chose to rely on Chrysler as his business model. That was a bad choice and he is paying the consequence. Simple as that.

His renovation was required by Chrysler to maintain a dealer, this isnt uncommon it has happened to 3 dealerships here where I live (honda, Toyota, Nissan). His debt for the renovation was so that he could maintain being a profitable business.

That would have been a great opportunity for him to ditch a dying product and start selling something profitable with a future. He didn't do that, so he gets what he deserves.

This really sucks for the guy, especially since the Dodge, Chrysler, Jeep dealership here is remaining open and the OWNER of the business made it public that he wished he was one of the ones that was shut down..... This guy is old, has lots of money and is tired of selling cars and hasnt been profitable in the last few years. Where is the logic in that? Why would Chrysler shut down a dealer that was actually doing well (for the owner and Chrysler) and leave open a dealership that is willing to fold and isnt helping Chrysler as a company?

Exactly, why would Chrysler choose to keep a unprofitable dealer open and close a "profitable" one?. They wouldn't. Simple. As I provided in my earlier statements, the article I showed clearly stated why dealerships were losing their contracts. This dealer in question simply isn't telling the whole story.

What everyone seems to be missing here is that the entire process here is simple free market capitalism. IF the dealer in question from the OP statement really was doing well and really was a good businessman, he wouldn't be going bankrupt. He made poor decisions, failed to plan for the future, and didn't diversify. He deserves to lose his business and I don't feel sorry for him. This is capitalism at it's finest, plain and simple. All of you that are crying, have yet to answer one simple question: What should have been done differently? Does Chrysler have the right to void their franchise agreements when they file? Do you want the government to come in and "make" Chrysler keep all "profitible" dealerships? What should have happened in THIS situation?