How a car dealer feels.

[Jo McDonald]

 
How a car dealer feels. . .

Letter from a Dodge dealer:

May 19, 2009
letter to the editor:
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. 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. 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.

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. 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.

HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?
THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY

This is beyond imagination!  My business is being stolen from me through NO
FAULT OF OUR OWN.  We did NOTHING wrong. 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..

HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE
UNITED STATES OF AMERICA?

I beseech your help, and look forward to your reply.  Thank you.
Sincerely,
George C.  Joseph
President & Owner
Sunshine Dodge-Isuzu

THANK A DEM FOR VOTING FOR OBAMA WHO IS DESTROYING
OUR FREE MARKET ECONOMY

[Sarge]

And that is just the beginning.

[Varmit]

...Welcome Comrade, to the United Socalist States of America.

[Diane Amberg]

If the other alternative was to let the car companies fail and go into bankruptcy, would that man's outcome have been any different? We lost a dodge dealership here too. Not defending anybody, just interested. Our Chrysler Plant fell some time ago and is up for sale now.  A lot of jobs were lost.

[Varmit]

Diane, I think you may have missed the point of that mans letter.  He purchased and paid for that dealship and it is being taken from him without compensation, thats theft.  If I am not mistaken isn't chrylser bankrupt even after the bailout?

[sixdogsmom]

Busted is busted. Had the whole thing gone under then all would have lost. Business is business, some win and some lose.

[Diane Amberg]

Chrysler may soon have to declare BK, but I don't think they have yet, have they?  I have no idea how car dealerships work. Who took his dealership away? Dodge? I know we had a similar thing at the edge of Philly a few weeks ago.  A long standing dealer ( before the bailouts) had all his cars taken back by the parent company. He decided to sell used cars and last I heard was doing OK. I have no idea how much he lost. So do the dealers buy the cars from Dodge and resell them, or is it a consignment deal where Dodge and the dealership get a part of the profit once the car is sold?. I admit to complete ignorance.  Could the Dodge guy sell Fords or some other car or would he have to buy get another franchise, which I suppose is the case? I know it doesn't sound fair but I'm afraid he's stuck. A wise old friend of mine told me years ago,"what ever you do, try not to get into a business that has an inventory."  As a teacher my life has been my brain and my mouth, no inventory to worry about.

[dnalexander]

It is a small point but Chrysler filed for Chapter 11 Bankruptcy back on 4/30/09. Case No. 09-50002 (AJG). I

feel sorry for the dealer that is losing his franchise because Chrysler is bankrupt. When a company goes bankrupt many people loose a lot of money vendors, employees, franchisee\dealers, investors, stockholders, bond holders. The business world can be very harsh. Still it is a sad story, but just one of many.

David

[Diane Amberg]

Thanks David, I really wasn't sure about Chrysler. Billy you were right.