No Chevy for you!

There goes Eastern Auto here in Antigonish. Established in 1883, building coaches, and Sears livery stables since 1813. It’s the Pontiac/Buick/GMC/Cadillac dealer here in Antigonish County, and competes with Ron MacGillivray’s Chevrolet, in the same town. Sad that the newer dealer with less for sale is the favourite.

Well Johnny… that must suck.

I guess you’ll be driving a Ford.

Hmm, here too. There are 2 GM dealers and one Saturn dealer within 1/2 mile of each other. I figure only one will be left, unless Saturn gets bought by someone else. I’m surprised both Chrysler dealers here are still open too.

Chevyless Canucks.

Had to happen here if it happened down there. No surprise.

Here that noise? That was the other shoe falling.

RaineMan, I have two Fords, two Chevys and two Chryslers. I don’t drink foreign beer either.

I understand the Buffalo theory as it applies to brain cells as well as anyone, that the weak are the first ones to die. I just have a tough time believing that fully one third of GM’s dealers are that weak up here. It’s a big country, and if you spread the herd out too thin it leaves you vulnerable to attack. As a consequence I have to believe most of the damage is going to be in the major centres. I’m betting that Vancouver/Lower Mainland gets hit hard.

From the States:

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

Things get uglier before they get better … buy gold.

Impulsive, what does it mean “…and given to another dealer at no cost to them.”? Who is this “other” dealer?

I have been informed that this type of activity occured in communist China under order of chairman Mao.

Not sure, as I didn’t write the letter, but I assume he’s referring to a neighbouring location who may use it as a used car lot?

Just goes to show how bad things are and still getting worse. Sad.

Sunshine: Gator Chrysler Est. 1970 is on the same block?
per google earth there are 30 dealers from NASA to Vero

it’s a heartfelt letter for sure, but there is nothing in the constitution or bill of rights that states the government of the united states of america will insure your right to bear arms and maintain your car dealership franchise under all economic conditions…

how in the united states of america did bernie madoff build a 50 billion dollar ponzi scheme? stuff happens…

it’s unfortunate, and sad, but this is the free market at work…(btw, if all you paranoid chicken little types who see communism in every shadow were right, this is the point at which the government would swoop in and assure them all of their jobs and prevent any dealerships from failing)…the fact these guys are doing a 100 mph faceplant is capitalism…

Hennypenny is right. This is capitalism.

Impulsive;

You blame the USG for Chryslers abysmal management in the last 20yrs? And GM’s for that matter. The import brands have been consistantly taking market share in the states for a long time. Why? Because the next generation didn’t want as many gas-guzzling ****boxes, that are worthless 2yrs later.

How could this happen in The USA? You’ve obviously been reaping the benefits and none of the shortcomings of Capital Facism.. How could 50million americans be without affordable healthcare? Oh yeah, that’s private too! “People before profit” is an oxymoron coming from any corporation. The bottom line for any company is to make a profit, for their shareholders. Why would they care about your employees, your community or even you? At all? Ever?

The “economic disaster” you speak of hasn’t even fully happend yet, The Great Depression was nearly 10yrs, and took a worldwar to get out of.. The unraveling of mankinds financial system is just starting.. What exactly is going to pull the world out of recession when the country driving growth for the last 100yrs is cracking like Rome because of gluttony greed ignorance and arrogance? I havent heard anyone answer that other then “Job creation”….

I think what it means that the business is being “given” to another dealership is that guy’s customer base is being redirected to a dealer they are maintaining – not that they are stealing his lot and building and givign it away.

What this guy needs to do is 1) band together with other dealors and see if he can represent a few competitors or companies trying to make headway here, 2) offer his parts inventory at cost (plus shipping) online to undercut other dealers, damaging their sales and getting his cash back, 3) not pay Chrysler on the $3M in auto inventory he holds. Unload the vehicles cheap, keep the cash and pay it all to others owed by his business (say for the refurbished showroom), and the 4) file bankrupcy.and screw only Chrysler in the end.

‘Tristi’, are you blind or dumb or both? Where can you find anything I’ve posted that has anything to do with anything you’ve yapped about? The letter I copied above was from a dealer in the States I found on the ‘Net … all I did was provide you all a view from the inside with respect to the thread.

‘mayer’, sounds good.

Dear George C. Joseph,

Have fun sucking c.ocks on your local street corner for a living when your dealership goes bellyup. Think of it as karmic payback for all the people you swindled over your illustrious career.

Yours truly,
DeansterTJ

‘Deanster’, it’s been boring without you here … good to see you back.

has anyone seen a list of affected Canadian dealers yet?