June 06, 2009
Hell has frozen over
Harry Reid has done something respectable. An excerpt from the letter he signed:
Closing these dealerships will put over 100,000 jobs at risk at a time when our country is shedding jobs at an alarming rate. We also question the criteria being used to determine which dealerships should be closed and the fundamental fairness involved in this effort. It is our view that the market rather than leaving it up to the manufacturers whose poor leadership contributed to their demise. Furthermore, we believe car dealers will be key players in any effort to revive the American auto industry.
Posted by: Alice H at
04:15 PM
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1
WTF?! OK, someone that knows far more than I about NV politics, please parse this for me.
Posted by: ECM at June 06, 2009 04:23 PM (q3V+C)
2
I think I just soiled myself.
Called my mom and asked her about dealerships (she used to do most of the accounting work for a local dealership) and asked if she knew of any established dealerships back then (this was the early eighties) that worked on consignment or if they bought stock at cost.
She explained that only the newest dealerships were consignment, and the superstores were a blend, but the locals, that you knew were making profit did it by buying the stock directly.
She is still in contact with one of the significant dealers in the area, and she said she doesn't think that that sorta situation has changed.
So if dealerships are responsible for their inventories financially, without accepting consignment agreements from the producers, how can producers dictate who gets to run a dealership?
The maintenance departments, to qualify for warranty must be staffed by certain people, the maintenance departments must supply the necessary equipment, the customer services are mostly in house, operating by guidelines laid out by the producer, so if the customer services pays for certification (which they do) and the maintenance departments are qualified (which is confirmed easily because the mech's are certified) and the vehicles are within the saleable range of qualifications, as certified by the mech's, and their are no complaints by the customers over the customer services of the locals, all while the local dealers own their own stock, exactly how does that HARM a producer?
It just doesn't make sense.
I guess I'm missing a whole bunch of stuff. (My family gets christmas cards from the owners of 3 dealerships every year)
Called my mom and asked her about dealerships (she used to do most of the accounting work for a local dealership) and asked if she knew of any established dealerships back then (this was the early eighties) that worked on consignment or if they bought stock at cost.
She explained that only the newest dealerships were consignment, and the superstores were a blend, but the locals, that you knew were making profit did it by buying the stock directly.
She is still in contact with one of the significant dealers in the area, and she said she doesn't think that that sorta situation has changed.
So if dealerships are responsible for their inventories financially, without accepting consignment agreements from the producers, how can producers dictate who gets to run a dealership?
The maintenance departments, to qualify for warranty must be staffed by certain people, the maintenance departments must supply the necessary equipment, the customer services are mostly in house, operating by guidelines laid out by the producer, so if the customer services pays for certification (which they do) and the maintenance departments are qualified (which is confirmed easily because the mech's are certified) and the vehicles are within the saleable range of qualifications, as certified by the mech's, and their are no complaints by the customers over the customer services of the locals, all while the local dealers own their own stock, exactly how does that HARM a producer?
It just doesn't make sense.
I guess I'm missing a whole bunch of stuff. (My family gets christmas cards from the owners of 3 dealerships every year)
Posted by: Douglas at June 06, 2009 04:31 PM (uU+Ss)
3
Only way I see it is that the producers just won't sell cars to the dealerships anymore nor will they warranty any new car sold through that dealership, which also makes no sense, because most of these established family places make their money on orders, not on out of the lot sales.
Posted by: Douglas at June 06, 2009 04:34 PM (uU+Ss)
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