Quote Originally Posted by Total_Blender
No sympathy for this guy. He should have known the risks associated with the franchise system.

He should have seen the serious lack of r&d that happened to Chrysler after the Daimler takeover, combined with the fact that Chrysler products required major factory incentives for people to buy them, and decided to sell a product people actually want.

No where in his letter does it say that the cars he sells won't have warranty coverage. It just says that his facility cannot perform warranty service. So people could buy from him and get service from other dealers in the area. Since these are new and untitled vehicles, the manufacturer is bound to he warranty wherever they are sold.

He could sell the vehicles at cost to other dealers in the area, or even auction them off if it came down to it.

He will be keeping his real estate, his facilities, and his staff. and he still has an Isuzu franchise. while Isuzu is not a particularly profitable franchise to have, it might pay his light bill.

And many people go to the dealers for service and maintainence after their warranties expire. They are not taking his tech's knowledge or their tools. So he still has a repair business as well.

The bottom line here is that this guy is going to stay in business, just not the Chrysler business. He will probably be selling Korean automobiles a year from now with no harm done.
considering chrysler said "hey remodel your building" required a massive loan to be taken out at suntrust bank, he will prob not own the land or building much longer.

it will be a commercial foreclosure, and that has just begun. wait til it reaches the level of the housing market then we are screwed. if you don't think this will happen, look around at all the retail space available at the moment, it's going to get worse b/c who can afford to start a business since 80% of americans lost half of their money in their 401k's etc.