CRAZY CHRYSLER BOARD OR CRAZY GOVERNMENT MEDDLING CLOSES LONG ESTABLISHED DEALERSHIPS BY CANCELLING THEIR FRANCHISES; GOVERNMENT GONE WILD!
Posted by Sterling Cooper Tuesday, June 9, 2009 at 9:32 AMThe number one goal for a business is to grow the business, to increase its revenues and profits and therefore its longevity. However, now that the government got involved, that business plan is out the window, and a new plan is now in place; a stupid plan as only can be expected from the government.
Chrysler, the long lived original member of the BIG THREE, has bought into the most ridiculous idea ever hatched by bureaucrats; close down dealerships which sell the cars it produces, to "help" the company succeed and prosper.
The Balzekas Chrysler dealership in Chicago was started in 1919 by a Lithuanian immigrant to serve the local ethnic neighborhood, and was notified that its franchise will be canceled, and told to fend for itself.
Now keep in mind that this is one of the few car dealerships still operating in Chicago, which has now the highest sales tax rates in the nation, the highest gasoline prices, the highest employment taxes, the highest unemployment rates in Illinois, the highest property taxes in Illinois, etc...it has been fighting to remain in business helping the local area stay viable as a neighborhood.
One of the best ways to expand the business of selling cars is to have as many dealerships as possible selling cars. That is good for the buyers who can make the dealers compete on price and service. That is also good for the factory which can offer local service and visibility.
But, no that is not the way the government sees it. They want Chrysler to close the dealerships which do not sell a lot of cars. Heck, having a dealership that can sell one car a week is better than no cars sold, right?
Dumb, and dumber...the new name of the Chrysler Board of Directors, and its government handlers.
This same story plays out all over the country as 789 dealers have been told to "get lost."
The company has come up with lots of excuses, none of them of course address the simple concept that these dealers cost Chrysler nothing.
They actually have as one of the reasons for the cancellations being that sch dealers are "not that profitable" they make make a profit of $100,000 or less, and that is the reason given.
Well smart guys, let's give you a short lesson in HOW TO RUN A BUSINESS.
Let's say that a dealership sells 100 cars a year, just like the ones you are getting rid of. let's assume that the average car/truck sells for $30,000, thus generating $3,000,000 in new car sales. That same dealership probably sells another 100-200 used cars and takes many in trade to sell a new car, thus generating another $3,000,000 in revenues.
If we use the BALZEKAS dealership example, it also means that the dealership paid approximately $600,000 in sales taxes, $60,000 in real estate taxes, paid salaries of millions, bought local services, employed local people who each had mortgages to pay and families to feed.
None of this cost Chrysler anything, but supported the local community.
So after they paid all their expenses, paid all their cars off, paid all their bills and employed people in the highest tax rate jurisdiction in the country, they made a profit of $100,000...so what's wrong with that? That $100,000 left over created a lot of money in between for lots of people.
Chrysler needs a new motto..when it exits bankruptcy using its RAM logo that it uses for its truck line; my suggestion-"DUMB AS AN OX".
As consumers we get to make a choice too, choose another car, choose one that the Balzekas dealership will sell in the future, but not a Chrysler, they do not deserve your business.
By the way over the years I had three Chryslers a 300,a New Yorker, and a Dodge Duster, and had great memories of these great road cars. Now I'll be looking at a car not mandated by or made under the thumb of the government.
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