fascism

[akmisrmaadi]

http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Furor-grows-over-partisan-car-dealer-closings-46261447.html


real fascism

Furor grows over partisan car dealer closings

Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans. What started earlier this week as mainly a rumbling on the Right side of the Blogosphere has gathered some steam today with revelations that among the dealers being shut down are a GOP congressman and closing of competitors to a dealership chain partly owned by former Clinton White House chief of staff Mack McLarty.

Also fueling the controversy is the fact the RLJ-McCarty-Landers chain of Arkansas and Missouri dealerships aren't being closed, but many of their local competitors are being eliminated. Go here for a detailed look at this situation. McClarty is the former Clinton senior aide. The "J" is Robert Johnson, founder of the Black Entertainment Television, a heavy Democratic contributor.

A lawyer representing a group of  Chrysler dealers who are on the hit list deposed senior Chrysler executives and later told Reuters that he believes the closings have been forced on the company by the White House.

UPDATE II: White House car czar married to Democratic fund raiser

Maybe it's significant, maybe not, but a colleague here in the Examiner newsroom just reminded me that White House car czar Steven Rattner is married to Maureen White, the former national finance chairman of the Democratic National Committee. And let's not forget that before Rattner became a Wall Street mover and shaker, he was a New York Times reporter. Check out the Wiki bio here.  

[KBCraig]

At least they're using the proper "F-word".

It is indeed fascism, or at least the economic part. Given the jingoism about how "We have to save the American car companies (even though one of them is German)!", it pretty well meets the nationalism aspect, too.

Now if they just engaged in reckless military adventurism... Oh. Wait.

[Pat McCotter]

If you are saying Chrysler is a German car company, it is not. It is a privately held company of Cerberus Capital Management and about 100 co-investors (they own 80.1%). Daimler still holds 19.9% of the company.

http://www.nytimes.com/2008/12/06/business/06chrysler.html?_r=2

[John Edward Mercier]

I still can't think of any competitive advantage to having fewer dealers.

[KBCraig]

I still can't think of any competitive advantage to having fewer dealers.

There's not one, of course. Chrysler opposes closing dealerships.

The manufacturers don't own the dealerships, so it doesn't cost them money to leave them open. More dealers + bigger network = more sales.

If anything, I suspect this move (aside from rewarding political friends and punishing opponents) will lead to higher average sales prices, which means more profit for banks.

[John Edward Mercier]

Most autos are in-house financing. Its why Cerebus bought Chrysler in the first place...

[Pat McCotter]

Yes, they did separate Chrysler and Chrysler Financial. They also bought GMAC and want to combine it with Chrysler Financial.

[John Edward Mercier]

So any ideas on why the closing of private retail locations would make any sense?
I can imagine that most dealers would carry less product, but wouldn't that entail less discount wholesale pricing?
And thus greater profit to the manufacturer?

[Pat McCotter]

Probably has to do with a lot of dealer contracts say that the manufacturer will buy back stock that doesn't sell - whether it is cars or parts inventory.

[Ogre]

I suspect the closings are as have been advertised -- purely political moves. Punishments for those who oppose the Obama, and rewards for those who do not. Since the government now owns so much of the auto industry, new dealerships will be purchased with "campaign contributions."