Change we can beleive in

[joecoolfreak]

I haven't seen anyone that it does hurt, except for some investors. I don't necessarily agree with supporting the unions, but that is beyond the point at the moment. All of those dealerships are owned by the same person/family. The point is the same person has a ford and a chevy dealership and there isn't anything stopping them. Sometimes, they are right next to each other.

Same thing here; http://www.championdealer.com/

Same people own a BMW, Acura, Cheverolet, Ford, Hyundai, Isuzu, Nissan, Scion, Toyota, Maybach, and a mini dealership. That is diversity. Even if they had a dodge dealership, I don't think they would have to go bankrupt now would they?

Let's look at it another way. Let's say that I buy a Subway franchise. I purchase the rights to sell their stuff and buy their products and use their name. In a few years from now, I look at the economy and realize that subway is not doing well. Their profits are down 48% and they are relying on creditors and investors to keep them alive. They are spending vast amounts of money and not turning any profits. Now, keep in mind, I am still selling sandwiches and doing quite well. If I continue the course and just hope for the best, then I am a crappy businessman, regards of how well I am doing now, because when subway files for bankruptcy and refuses to supply me with more product and the bankruptcy court invalidates my contract with them, then I have store full of product I can't sell and I should have seen it coming. The auto manufacturers didn't suddenly start to have problems. The long and short of it is that if you sell new cars for a living, especially if you sell one of the big three, you are taking a big gamble for long term stability right now. That is just the free market talking, no politics. The current politics don't effect any of this.

[BanginJimmy]

I haven't seen anyone that it does hurt, except for some investors. I don't necessarily agree with supporting the unions, but that is beyond the point at the moment. All of those dealerships are owned by the same person/family. The point is the same person has a ford and a chevy dealership and there isn't anything stopping them. Sometimes, they are right next to each other.

Same thing here; http://www.championdealer.com/

Same people own a BMW, Acura, Cheverolet, Ford, Hyundai, Isuzu, Nissan, Scion, Toyota, Maybach, and a mini dealership. That is diversity. Even if they had a dodge dealership, I don't think they would have to go bankrupt now would they?

Let's look at it another way. Let's say that I buy a Subway franchise. I purchase the rights to sell their stuff and buy their products and use their name. In a few years from now, I look at the economy and realize that subway is not doing well. Their profits are down 48% and they are relying on creditors and investors to keep them alive. They are spending vast amounts of money and not turning any profits. Now, keep in mind, I am still selling sandwiches and doing quite well. If I continue the course and just hope for the best, then I am a crappy businessman, regards of how well I am doing now, because when subway files for bankruptcy and refuses to supply me with more product and the bankruptcy court invalidates my contract with them, then I have store full of product I can't sell and I should have seen it coming. The auto manufacturers didn't suddenly start to have problems. The long and short of it is that if you sell new cars for a living, especially if you sell one of the big three, you are taking a big gamble for long term stability right now. That is just the free market talking, no politics. The current politics don't effect any of this.

You typed all of that and all you had to do was say that you believe a small businessman should be punished for not owning several different franchises.

Maybe he didnt want to own more than 1 franchise? Maybe he had plans to, but then the economy tanked and he decided not to?

I'll have to look it up, but what does it cost for Chrysler to sell their vehicles to a dealer? I would think that it would cost Chrysler nothing and they had everything to gain, just like your Subway franchise.

[Vteckidd]

my .02

1) Chrysler as a whole has NOT been profitable. Anyone owning a Chrysler Franchise has known for a long time, the company, as a whole, is not doing well and has not done well for A LONG TIM.

2) If the Main company isnt doing well, it is still possible for SMALLER franchises/dealers to do well/profit. Look at Starbucks. There were 5000 stores nationwide 3 years ago, now they are drawing down to somewhere half that number because they overexpanded. People PAID for those franchises, and im sure they are losing them now even if they are profitable.

3) If the MAIN company goes out of business, then your franchise is still worth nothing, so you are kinda doomed either way. Lets say this guy gets to keep the Franchise, and Chrysler goes under anyway, awesome, your inventory is worth even less now an you are right back where you started.

4) If he did major renovations in the last 2 years or sooner, he was an idiot. the car companies have been way out of money for A LONG TIME. Why put money into a dieing breed? I mean i understand HE was profitable, but that means jack shit if the parent company is going down.

5) Franchise people know the risks when they buy in. You can be making a million dollars a day, but if the parent company is losing 2million a day, you are not going to survive, PERIOD. Thats the risk.


The only thing i do not like about this, is that Obama is LETTING chrysler take this guys franchise rights away and give them to someone else "cost free". That is not right. Some sort of compensation should be paid at the minimum. But the problem is Chrysler is broke, so.............

Something else isnt making sense, i highly doubt chrysler is going to stick him with $3,000,000 in inventory and move on and say sorry. I am willing to bet money that the "new franchise" owner will prob end up buying this guys inventory in some form or fashion. Im sure there is more to this story that is not being revealed.

If Obama sits back and lets Chrysler stick it to this guy in those terms, then hes majorly fucked up a small business. You cant penalize a guy for doing well.

The FRANCHISE risks are ASSUMED by everyone, but the Govt should not have a hand in "who stays and who goes".

But to be honest, its all garbage and wrong cause we are in bed with the auto makers whether you like it or not. No turning back now.

[preferredduck]

my .02

1) Chrysler as a whole has NOT been profitable. Anyone owning a Chrysler Franchise has known for a long time, the company, as a whole, is not doing well and has not done well for A LONG TIM.

2) If the Main company isnt doing well, it is still possible for SMALLER franchises/dealers to do well/profit. Look at Starbucks. There were 5000 stores nationwide 3 years ago, now they are drawing down to somewhere half that number because they overexpanded. People PAID for those franchises, and im sure they are losing them now even if they are profitable.

3) If the MAIN company goes out of business, then your franchise is still worth nothing, so you are kinda doomed either way. Lets say this guy gets to keep the Franchise, and Chrysler goes under anyway, awesome, your inventory is worth even less now an you are right back where you started.

4) If he did major renovations in the last 2 years or sooner, he was an idiot. the car companies have been way out of money for A LONG TIME. Why put money into a dieing breed? I mean i understand HE was profitable, but that means jack shit if the parent company is going down.

5) Franchise people know the risks when they buy in. You can be making a million dollars a day, but if the parent company is losing 2million a day, you are not going to survive, PERIOD. Thats the risk.


The only thing i do not like about this, is that Obama is LETTING chrysler take this guys franchise rights away and give them to someone else "cost free". That is not right. Some sort of compensation should be paid at the minimum. But the problem is Chrysler is broke, so.............

Something else isnt making sense, i highly doubt chrysler is going to stick him with $3,000,000 in inventory and move on and say sorry. I am willing to bet money that the "new franchise" owner will prob end up buying this guys inventory in some form or fashion. Im sure there is more to this story that is not being revealed.

If Obama sits back and lets Chrysler stick it to this guy in those terms, then hes majorly fucked up a small business. You cant penalize a guy for doing well.

The FRANCHISE risks are ASSUMED by everyone, but the Govt should not have a hand in "who stays and who goes".

But to be honest, its all garbage and wrong cause we are in bed with the auto makers whether you like it or not. No turning back now.

amen for pointing out the fact that someone else is getting the franchise for free, it's prob one of obama's friends. lol. most dealers, including ford went on remodeling sprees back in 02-03 so he prob didn't do it recently. but i can say it costs a lot of $$ to remodel, i ran this guys service dept when he remolded for mack trucks
http://www.gainesvilletruckcenter.ne...d=15&Itemid=30

that is just the parts room

his inventory will prob go to the new owner at little to no cost to the new owner.

service is where the $$ is. even at the mack truck dealer we sold more parts than nextran which has 20 dealers combined and we made most of our money in the service dept. only time we lost $ was excessive labor on warranty jobs and that was due to a crowded shop counter in the mornings while they were trying to get the deliveries out.

but as you pointed out chrysler is broke and has been heading for disaster for a long time so the only thing this guy can really do is service/warranty work.

seriously everyone look into the company who owns chrysler and see how much af a stake they have in GM and
GMAC financing.