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Politics Behind Chrysler Dealer Closings?

Thugocracy,, Chicago-Style

Posted May 28 2009 07:35 AM by scott_ross 
Filed under: Miscellaneous

 


When Chrysler announced earlier this month that they were axing nearly 800 of its franchised dealers, the corporation said that it would use dealers’ sales volumes, customer-service scores and local market shares as criteria for deciding which dealers stayed open, and which would be closed.

Now, it comes to light that one factor may outweigh all of those: Politics.

As in whether or not the business people that operate these dealers contributed money to the “proper” candidates and causes, in the eyes of the Administration in DC and its “Car Czar.”


 

Analysis of the dealer drop list has shown that a BIG number of those dealers-to-be-axed are run by those who’ve given money to Republican candidates for elected office or GOP-related organizations.   


Read more about it here: http://directorblue.blogspot.com/2009/05/red-alert-did-campaign-contributions.html

And here in two items on World Net Daily: Their main story: http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=99325

AND http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=99328 (This one has a listing of what dealers gave what $$ to who.)

Here’s an example involving Bob Rohrman, a long-time Jeep dealer in Lafayette, Indiana (across the Wabash River from Purdue, where Tech Editor Dave Young and I both graduated from). Rohrman opened his first car store--a used car lot--in the mid ‘60s, scoring a Rambler (later AMC) franchise before the end of the decade. When AMC bought Jeep, Rohrman’s got a Jeep franchise, which has been now operating out of the same location going on 40 years.

I met Bob Rohrman way back when, on a day when I borrowed the company car of AMC’s regional sales manager—a 304-powered 1979 AMX—to road-test for my college paper, The Purdue Exponent.

According to donor records (that were cited at http://directorblue.blogspot.com/2009/05/red-alert-did-campaign-contributions.html), Bob and Linda Rohrman have given some $24,000 to Republican candidates and organizations in the latest election cycle. That’s not surprising, as Greater Lafayette and that surrounding area of north-central Indiana does have a lot of GOP voters. (They elected my great-uncle, Joe Dienhart, to two terms as West Lafayette’s Mayor during the ‘70s.)

That same analysis of donor records show very few, if any, dealers that contributed to the Obama campaign, or Democrat candiates/organizations getting their Chrysler, Jeep or Dodge franchises pulled.

Here’s another interesting tidbit: The folks at the directorblue/blogspot site listed above got this quote from one of the attorneys representing some soon-to-be-axed Chrysler dealers:

“Lawyer Leonard Bellavia, of Bellavia Gentile & Associates, who represents some of the terminated dealers, said he deposed Chrysler President Jim Press on Tuesday (May 26) and came away with the impression that Press did not support the plan. ‘It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers,' Bellavia said. 'It really wasn't Chrysler's decision. They are under enormous pressure from the President's automotive task force.’ “(Emphasis added by the directorblue/blogspot folks.)

The sentiment that’s emerging is that the Car Czar and his bobos are pulling franchises from GOP donors, doing away with competition for “friends” of the Administration. This could also be happening to the same folks in The General’s dealer organization, by the way.

It’s just like the way that Chicago thugs (in the “Outfit,” or otherwise) have conducted business for years. Or the way that Zimbabwean president Robert Mugabe rewarded his friends with farms stolen from those who’d made them the breadbasket of Africa. Now that nation is starving.

Am I mad? YES.  Mad that those who apparently gave to the “wrong” candidates or organizations are now being screwed out of their long-running businesses AND the money they sank into inventory and parts, which can’t be sold as new without a franchise.


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Chrysler Pacifica Research
Chrysler Pacifica Car and Truck pricing can be complicated and sometimes confusing. As an authority on car buying needs we provide information about new cars, such as the Chrysler Pacifica and all the features it comes with. Fuel efficiency is important and the 2008 Pacifica with a 23.0 gallon main unleaded fuel tank 19.1 capacity gets 18 mpg, and comes with a standard Automatic transmission, and AWD drivetrain. Other similar vehicles are the Dodge Nitro and the Jeep Compass.
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