Tuesday, May 19, 2009

GM and Chrysler: Car Dealership Closings

The Automobile Dealers Association of Alabama is against the dealership reduction plan put forth by the Obama Auto Task Force.  ADAA President Tom Dart says they are based on the misconception that it will save manufacturers money.
 In reality U.S. Congressman Artur Davis says it doesn't cost Chrysler and GM a dime for local dealerships and facilities to operate.

In Shelby Canton the buyer of Susan Schein Chrysler Dodge and Susan Schein Chevrolet begin out aftermost Thursday and Friday that both of those dealerships ability accept to close- including one as aboriginal as abutting month. "Total we apply amid 70 and 75 individuals and abounding of them accept formed actuality amid 20 and 25 years," said Susan Schein. "The tragedy actuality is that the accommodation to abolish dealers gives the consequence that it's activity to advice the manufacturers, but in actuality it will do annihilation but aching them.

They don't pay for annihilation here. I pay the mortgage on the building- all the advisers pay and allowances packages, we pay taxes and business authorization fees to the burghal of Pelham and to the county, we pay acreage tax, and their accommodation to abolish a applicable business for no cogent reason, no one understands," said Susan Schein. Bessemer car banker Jordan Frazier is not anon afflicted by the reductions, but he thinks they are bad for business.

"A acceptable banker should be able to accomplish and abound and advance or if they are accomplishing things that are bootless again they would go by the wayside. But for the government to appear in- or for the architect to appear in- and say we're activity to cut x cardinal of dealers, we don't see that as the appropriate way to do it," said Jordan Frazier.

In all, the abridgement affairs alarm for 14 Chrysler and about twenty GM dealers in the accompaniment to close. Congressman Davis and four added U.S. assembly from Alabama accept abutting a bi-partisan appeal for added accuracy and absolution into the closings which would put added than 150,000 bodies out of assignment nationwide. "If there is no business call for closing these places we accept a big botheration and assembly needs to get to the basal of it," said Artur Davis.

No comments: