Red Alert: Did anti-Obama campaign contributions dictate which Chrysler dealers were shuttered? , page 2
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reply posted on 27-5-2009 @ 05:06 PM by earlywatcher
Here's something from the original article referred to in the OP that discusses minority dealerships:

Update IX: Joey Smith reported tonight that a Democratic donor group in the Midwest and South will not have to close any of their Chrysler dealerships... and their competition was gutted.

The company is called RLJ-McLarty-Landers, and it operates six Chrysler dealerships throughout the South. All six dealerships are safe from closing. The dealer locations are: Bentonville, AR (northwest Arkansas); Lee's Summit, MO (south of Kansas City, MO); Branson, MO; Olathe, KS (near Kansas City); Bossier City, LA (near Shreveport); Huntsville, AL...

The interesting part is who the three main owners of the company are. The owners are Steve Landers (long-time car dealer, 4th-generation dealer), Thomas "Mack" McLarty (former Chief of Staff for President Clinton), and Robert Johnson (founder of Black Entertainment Television and co-owner of the NBA's Charlotte Bobcats). Landers has given money to Republicans in the past, but McLarty campaigned for Obama in 2008, and Johnson has given countless amounts of money to Democrats over the years...

...So far, RLJ-McCarty-Landers will have 8 competing dealerships total[ly] eliminated from 3 of their markets: Lee's Summit, MO; Branson, MO; and Bossier City, LA. I'm willing to bet that the other 3 markets that they serve are similar in nature.

directorblue

Apparently it has also conveniently eliminated competition for some dealers. Then there is this:

Kenneth Zangara (Zangara Dodge, Inc./Car Dealer), (Zip code: 87111) $400 to REPUBLICAN CAMPAIGN COMMITTEE OF NEW MEXICO on 09/18/07 The news on this dealership was; its credit was shut down and Chrysler would not let him stay open. This dealership was consistently the largest dealership in New Mexico. And it is strange that in a 2008 press release, Ken Zangara was listed as one of the dealers participating in the testimony on Capitol Hill.

More details on Ken Zangara: For more almost two decades, Ken Zangara was a good soldier for Chrysler. For many years he was the largest Dodge dealer in New Mexico, and he served a term as chairman of the Dodge National Dealer Council. The Albuquerque Dodge dealer was active in Republican Party politics, too, and knew President George W. Bush. Zangara used his connections in Congress to get Chrysler LLC and its dealers an audience with the White House when the embattled company sought a federal loan late last year.


definitely a republican.

thomasalamb

and here are some senators asking questions about how the dealerships to be closed were chosen:
U.S. Sens. Claire McCaskill and Kit Bond wrote a letter Friday to President Barack Obama’s auto task force seeking answers to concerns raised by Chrysler and General Motors dealerships in Missouri that learned last week their contracts will be terminated.

Auto dealers statewide have expressed frustration to McCaskill and Bond about the lack of information they have received from Chrysler and GM, saying they didn’t know the criteria used to make the contract termination decisions. The two Missouri senators asked the task force for the criteria used to determine how many and which dealerships would be terminated, as well as the process for dealerships to appeal decisions.

“Many Missouri dealers are asking us why certain profitable dealers, costing the auto companies nothing, were selected for closure,” McCaskill, a Democrat, and Bond, a Republican, wrote to White House car czar Steve Rattner. “From this perspective it appears an arbitrary standard may have been used to make these decisions … these dealers deserve a little more than just a pink slip in the mail.”


bizjournal

it wasn't bottom of the barrel companies that were chosen. lots more digging needs to go on here.


reply posted on 27-5-2009 @ 05:52 PM by Badgered1
Just checking here....

So all you anti-Obama people are saying that there should be fair, equitable treatment of all the dealerships based on the manufacturer's failure to compete in a free market?

Yep, straw, straw, straw.

Trick question.

Second question: Had McCain won in the last election (yes, it still smarts, huh? Landslide and all that...), and been in exactly the same position as Obama finds himself in (and he would have), would the closures be based on the same list - but with the GOP supporters "winning"?
If you are honest with yourself, you know the answer is yes.
Would you be whining about it?
No. You'd be saying that he was separating the strong from the weak, the wheat from the chaff, the "patriots" from the "terrori$t$" etc. etc.

Can't have survival of the fittest, can we. Why not just let the big US companies fail? That's free enterprise. That's just business. Unless there's someone else to blame, huh?

You can't have it both ways.

Why are these companies being helped?
Because the companies that are turning a profit are using a different business model. And the USA model can't be seen as a failure by the rest of the world.

I'm not affiliated with either side. I just have a problem with the whole "Obama is leading us to socialism" and "Shrub was the best thing to ever happen to the USA" shtick.

Chrysler failed because?
Did that failure all occur in the last four months?
Did any of it happen in the previous eight years?

Blame who you like, just be logical and clear about it.

I'm off to buy a brand new Studebaker. Oh, wait...

Maybe I'll buy a Toyota. They, at least, are made in America.


reply posted on 27-5-2009 @ 07:30 PM by Fiscal
reply to post by earlywatcher



Actually, as an Albuquerque resident and former employee at a local automotive dealership, Zangara has a history all its own.

Zangara got into a whole bunch of fraud and ended up being shut down, more or less.

www.krqe.com...


reply posted on 27-5-2009 @ 07:39 PM by jdub297
First things first.

1. Corporations don't make political contributions, people do. And they are not deductible, so they are not coming out of taxpayers' pockets.

Learn about business and life in general before you post disinfo, please.

Second, most business owners tend to be wealthy, or well-financed (i.e. mortgaged to the hilt --ever heard of 'floor planning' a dealership? if not, you have no business commenting on car business), in favor of smaller gov't, less regulation, free trade, and conservative social policies.

C. That usually means Republican on national issues, but can mean Democrat on local matters. That varies by region, and there are many minority-owned dealerships and dealership franchise territories in Democrat-controlled areas.

iv. The various stories have examined the largest or most-often named owners in the cut lists. They have not done as extensive a search of surviving franchises for political affiliations. Those cut are not the lowest performing franchises in most cases.

e. Bankruptcy rules are Constitutionally required to be uniform so people know where they stand when dealing with a business or person. Even in good times, the rules are set so people can plan ahead if things go bad.

Same with the "sanctity of contract." You can't legally rewrite the terms of contract or laws to protect people who make contracts after the fact.

Loans and investments are contracts. Obama is voiding contract law to benefit preferred parties at the expense of others.

Obama has already politicized the Bankruptcies of GM and Chrysler by selecting preferred groups to profit from the process. Unions will own a large part of the companies that emerge to return to business. Fiat SA will own 20% of Chrysler's successor FOR FREE!

Finally. Even if Democrats are not shown to predominate among the remaining franchisees, the process has been bastardized and corrupted by the biggest Chicagoland thug politician to ever inhabit the White House.

Now, let me tell you how I really feel about Obama .... .

jw



[edit on 27-5-2009 by jdub297]


reply posted on 28-5-2009 @ 08:11 AM by rundog
GM and Chrysler should have declared chapter 11 like any other failing US business. That's how it works in capitalist USA. They would come out of this reorganized, ready to do business once again. Obama threw $$$ at both, now they are failing anyways, but the gov't is now 'running' them both. Great. We all know how efficient the gov't is at running anything!

Published letter from dealer:

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.
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