Tator could have written this

[Abq Bill]

Good letter by a dealership owner !

Letter from a Dodge dealer

letter to the editor
[FONT=times new roman,times]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.[/FONT]

[FONT=times new roman,times]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.[/FONT]

[FONT=times new roman,times]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.[/FONT]

[FONT=times new roman,times]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.[/FONT]

[FONT=times new roman,times]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. [/FONT]

[FONT=times new roman,times]HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN? [/FONT]

[FONT=times new roman,times]THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY[/FONT]

[FONT=times new roman,times]This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.[/FONT]

[FONT=times new roman,times]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.[/FONT]

[FONT=times new roman,times]HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?[/FONT]

[FONT=times new roman,times]I beseech your help, and look forward to your reply. Thank you.[/FONT]

[FONT=times new roman,times]Sincerely,
[/FONT]

[FONT=times new roman,times]George C. Joseph[/FONT]
[FONT=times new roman,times]President & Owner[/FONT]
[FONT=times new roman,times]Sunshine Dodge-Isuzu
[/FONT]

 

[Madduc]

Give thanks to the Obama Plan.

 

[dave6666]

I think how it can happen is that it is how capitalism works. If Chrysler is doing nothing illegal, then all you can do is complain. Why don't these dealers sue if they think they have a case? Did they not read the contract when they partnered up with Chrysler? I bet it covers this.



That being said, I do think how Chrysler is treating it's dealerships is wrong. They need to close some to survive; there has to be some pain. But they should buy back the inventory or assist with it's dispersion.

 

[DrumrBoy]

I think how it can happen is that it is how capitalism works. If Chrysler is doing nothing illegal, then all you can do is complain. Why don't these dealers sue if they think they have a case? Did they not read the contract when they partnered up with Chrysler? I bet it covers this.



Exactly. The guy is complaining as though laws have been broken or the Constitution breached. This is bankrupcy; read the contracts and understand the risks.

It is however a moral and future-business issue. Morally, few professional businesses i know would strongly encourage costly renovations and then withdraw with a clean conscience. They should share the pain in transitioning to a new structure.

Also, for the remaining dealers, how Chrysler treats those less fortunate will be closely watched. The euphoria of being a "survivor' will quickly cede to "holy crap, how will I protect myself against the effects of any further Chrysler woes". Treating the exiting folks with fairness and dignity makes good business sense - and I hope the folks in charge have a bunch.

 

[Slowsupratt]

Give thanks to the Obama Plan.

If you say so...

 

[Paul Hawker]

I guess that this is not a normal bankruptcy, but a planned program where one persons private company is extorted from him under commands from the U.S. government, and given to another private company.

I also would never have expected to see this type of treatment to a private company by the U.S. Government.

This is not a normal bankruptcy where Chrysler makes the decision, but the Federal Government sets the rules.

A sad day indeed.

 

[dave6666]

I guess that this is not a normal bankruptcy, but a planned program where one persons private company is extorted from him under commands from the U.S. government, and given to another private company.

I also would never have expected to see this type of treatment to a private company by the U.S. Government.

This is not a normal bankruptcy where Chrysler makes the decision, but the Federal Government sets the rules.

A sad day indeed.

I agree with everything you've said, from my limited knowledge of the actual details of what is going on. But it is still capitalism. Success is not guaranteed. And getting screwed is unfortunately not always protected either. Especially when it's your government doing the screwing...

 

[Shandon]

If you say so...

I can Second that SAY SO

 

[V10TT]

I just got off the phone with Chuck Tator, he has not been able to sleep since he got the letter, and appreciates all the support.
He said he will get on the forums when he gets a chance. Right now he has been involved in federal courts trying to figure out what he is going to do.
No buy backs on current inventory, parts, or access to diagnostics programs from Chrysler.
They just pulled the plug, and left you there to die.
What does not make sense is that even very profitable dealers are been closed. It is all been governed by politics.

I can't imagine the kind of effect all of this is going to have on the economy. Things are going to get a lot worse.

If our current president would've been a Republican, the media would be blasting the administration every day and twice on sunday. However, you put the news now , and it is all business as usual.

 

[DodgeViper01]

Unfortunately, this is business as usual as this is covered in their franchise agreement. Typical franchises get renewals every 5 years and after that period they CAN take the franchise away from you with you having no recourse. It is unfair, but this is how franchises work.

 

[xlrashn]

Unfortunately, this is business as usual as this is covered in their franchise agreement. Typical franchises get renewals every 5 years and after that period they CAN take the franchise away from you with you having no recourse. It is unfair, but this is how franchises work.

I totally understand your point.

However, why would any parent company choose not to renew a franchise that is STABLE and PROFITABLE?

I understand not renewing a non-profitable one, but some of the dealers being cut-off are VERY PROFITABLE.

 

[Andrew2KRT10]

I think I see a point in Mr. Joseph's argument, but there seems to also be a sort of double standard here.

When he says he bought the franchise years back, isn't he really just buying a name and of course corporate support? But isn't the inventory he has accumulated his, not corporate's ? So how can he expect any buyback's on the parts inventory? I understand it might be useless without corporate support in the way of diagnostics data base support, but the inventory is still his and his risk to keep that inventory. I am sure there is some wording somewhere in some contract that specifies corporate's decline of liability in the event of collapse or bankruptcy regarding the support for that parts inventory. As for the cars in the lot being "stolen" and just "given" to another dealer at no cost to them, I guess that does sound like outright theft if Mr. Joseph actually bought and paid for that invnetory of cars from corporate and suddenly a trailer comes along and takes it all away, but if that inventory was / is really bought by the dealer contingent upon sale to customers and then it is taken away, how does Mr. Joseph loose out?

But what do I know, I am not a salesman and not in this feild. I'm in healthcare so I might not really understand his position. I am just looking at the situation objectively as some poor slob from the outside looking in.

But no matter what, George, Chuck, it's all a bad shame that these hard working guys, thier employees and all others involved with the businesses will suffer.

AC

 

[slaughterj]

I think how it can happen is that it is how capitalism works. If Chrysler is doing nothing illegal, then all you can do is complain. Why don't these dealers sue if they think they have a case? Did they not read the contract when they partnered up with Chrysler? I bet it covers this.

Exactly. The guy is complaining as though laws have been broken or the Constitution breached. This is bankrupcy; read the contracts and understand the risks.

What you are forgetting is the relative bargaining power of the parties, any manufacturer can ratchet up the screws over time through these agreements, and what can the dealers really do? Nothing, they pretty much have to take it, as the alternative is getting dropped, and you can see what the impact of that is.

If you would like a comparable situation, go "buy" (license) some software from Microsoft and try to negotiate the legal terms and see how far you get.

 

[Whitten]

Neil Boortz is reading the letter as I type this on his radio show.


This is just sickening.

 

[Mopar Boy]

Regardless of right or wrong, I feel bad for all of he families that have dealers as their livelihood.

Robert

 

[trick]

this is what our government wants, we are headed to socialism the hole point is for you to be dependent on the government

 

[Chrissss]

Unfortunately all the letters in the world aren't going to do a bit a good. The courts, maybe. Letters to Cerberus, the press, TV, pointless. But I hope I am wrong, especially in Chuck's case. Just plain wrong to shut these guys down.

 

[RTTTTed]

I have to agree thatI would much prefer to see blah, ordinary, "eceonomy car comopanies" like Honda go bankrupt. Couldn't the Gov give the money to Chrysler and GM, then direct which Hyundai and Honda shops to close? Maybe shut down 50% of Mazda and Subaru?

Last time I drove the central US the most common car I saw was Green Subarus. I guess maybe that's why Dodge and GM plants, shops and Dealerships are closing? Cause we need the room for more Subarus?

Next GM and Chrysler will be ordere to stop building Vipers, Vettes and SRTs? That would make room for the Mercedes SLR and Missan GTR plants???

Ted

 

[dave6666]

I have to agree thatI would much prefer to see blah, ordinary, "eceonomy car comopanies" like Honda go bankrupt.

I'm not gonna jump too high on the ricer car company bandwagon here, but Ted... Don't you think maybe one of the reasons that Honda and Subaru etc. are not in the same dire trouble the big three are is because of the blah cars they make? Can you not base credit to their success with their products? That is what they do... make cars. And they are being very successful at it.

So from a business model standpoint, I think we should commend Honda etc. for their prosperity. Just can't see myself in an Accord though...

 

[RTTTTed]

No research and blah econo is what's needed to be successful? My cousin has a GM pickup and 2 2003 Toyotas which he refers to as POS. He likes his GM pickup?

I love my Viper. I love some cars and hate junkers and rip off cars. I hate cars that can't stop or are small so that they lose in accidents situations.

I've never owned an Import and would rebel if I was ordered or forced to buy/drive one. I do a lot of driving and NONE of it is in econojunk. I enjoy driving performance equipment.

Ted

 

[RTTTTed]

Furthermore, I dislike the cars they built and therefor dislike the companies. There is more to my ideal business model than just having money. I prefer pride and accomplishment. Having the title of World's quickest road car, world's fastest pickup, World's quickest production car, first production car to fo faster than 200mph, etc. etc.

Honda can say, ... we copied everything? or "Just like all the other econoboxes."

Even if Dodge goes down the words, "Yah, it's got a Hemi." still bring smiles and great memories to many of us.

Driving to fill up my car with Gas, I passed the school teacher and my daughter. School teacher said, "You didn't ever mention that your Dad has a Viper. Will he take me for a ride?" Obviously NOT a Honda.

Ted

 

[dave6666]

No research and blah econo is what's needed to be successful?

I never said it is needed to be successful. But I did certainly say it is part of their success.

You can decide for yourself whether it is a requirement.

 

[DodgeViper01]

I totally understand your point.

However, why would any parent company choose not to renew a franchise that is STABLE and PROFITABLE?

I understand not renewing a non-profitable one, but some of the dealers being cut-off are VERY PROFITABLE.

They want each dealership open to sell all Chrysler Brands and the profitable onces tend to have this problem so they are giving the franchise to someone who has most of needs one more. Sad!