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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

A LETTER FROM A DODGE DEALER

By
Neal Boortz
@ May 20, 2009 8:24 AM
Permalink | Comments (127) | TrackBacks (0)

A listener pointed me to this letter from a Dodge dealer down in Florida. Thought you may enjoy ....

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



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What others are saying

  • I'm sorry
    This is a tragedy, but hopefully we will prevail
  • Who is John Gault?
    I don't believe Atlas will shrug. I believe our government will sink further away from the wisdom of our founders. The taking of our labor for payment to the 'less fortunate' will continue until we resemble Zimbabwe.
  • Joyce M, I wish you could work on an automotive assembly line. How would you like to hold your arms in the air for 10 hours a night while installing horns on cars that are coming over your head? Doesn't sound tough and since you think it is so easy I'd like you to try. Maybe you would prefer to hoist 400+ AC units a night into trucks and bolt them down? Did I mention they weight about 50 LBS each? Oh no wait I think I know what you would like to do, put together and run the AC lines on a truck that you can barely bend over, and when you do find a way to bend over it your body is contorted and not at all in a normal position. I'd give you 2 hours on an automotive assembly line before you walk off crying because the work SUCKS! Working on an assembly line looks reaaal easy until you have to do the actual work. I'd love to point and laugh at you will you try it.
  • Joyce M, do you have the slighest clue what goes on in the real world? Your comments are a worthless waste of bandwidth. I bet you're one of the ones I saw on TV saying Obama was going to save the country and help make your mortgage payments. LOL LOL LOL
  • OBAMA
    This is only the begining of the end with obama in office, it's just starting with Mr. Joseph. Let's see how corporate America like Obama now. He will save us all.
  • Dodge Dealer
    enough of you voted for the new president...what did you think was going to happen? Suggest you get your hands on your assests/$ and manage for yourself before you've nothing left...we can't trust our government
  • to poster No sympathy
    How can you have no sympathy for this man? He ran his business well and he was not in financial trouble. I can understand being sore at Chrysler but not at Mr Joseph.
  • Dodge Dealer
    Someone asked "what can we do?" The only thing we can do in this democracy is vote some reasonable, free-market candidates into the US House and Senate in 2010. Start working on it today!!

    To George - I am personally very sorry for what is happening to you and your family and employees. God be with you!
  • No sympathy
    The auto industry hasn't made profitable cars in years. It’s no wonder corporations ‘outsource’ when labor costs overseas are a fraction of what they are here. Thanks to unions, company mismanagement, overpaid, incompetent CEOs, and government interference, we’re are witnessing a mass exodus of American businesses.

    Successful businesses should be allowed to flourish; bad ones should be allowed to liquidate. That’s the way free market capitalism is supposed to work. Every time the government sticks its nose where it doesn’t belong, the economy suffers.

    Floundering corporations will become failed government-owned asssets. Corporations attempting to escape the stifling taxation and the malevolent tactics of the Obama regime will be be penalized.

    How’s that ‘change’ working for ya?
  • Please show me in the franchisee contract where the franchisee is guaranteed a risk-free, consequence-free business for life?

    He writes in all-caps and with exclamation points, but no where in this letter does he specifically mention how his franchisee contract has been violated.

    Does he own a business or an entitlement?
  • Shawn & Joyce Comments
    Wow! Shawn and Joyce, you have watched a documentary on union workers at plant or you have been on a tour. Big F'n deal! I was like you, I thought, how easy of a job they had with machines doing all of the work....I used to work as a engineer at GM and had the pleasure of launching many vehicles all over the world. I was at the plant, on the on plant floor standing next to these union workers thinking the same thing you two did "How easy!" Every thing looks easy until you do it! Then the week came along where several of the engineers got to work a full day at one station, moving to a complete different line station through out the week. Boy, was I ever wrong! I busted my a$$ off trying to keep up. I was getting overwhelmed frustration because I thought I was going to show everyone up! The line workers made everything look easy as could be. Of course, they have been trained and had plenty of time to learn how do what they do fast! Now I am mechanically inclined then most. I restore cars as a hobby and can fix anything but trying to keep up with a line that was delivering a new vehicle in front of you every 70 seconds is very difficult until you know what you are doing. Even after you have learned the process, you have to move to prevent the line from stopping. Go take a door panel off your car. Now, make 4-6 wire connection, reinstall it, shoot 5-8 screws and put on multiple screw covers in 70 seconds! I guarantee you could not do it! Better yet, go stand in a pit for 8 hours and lift a 45lbs. axle shaft into position over your head with one hand while you operate a torque gun with the other! Do it in a assembly plant on a 90 degree, with fans blowing warm air on you for 8+ hours a day. I can tell the both of you that was a eye opening experience. So you two, keep sitting behind your computers shoving powder donuts in your mouth, preaching to everyone online about how you once went on a tour or watched a documentary on how "easy" UAW works have it. Until you have actually done it, you will never have respect for the true working class.
  • bankruptcy law
    So did any of you outraged posters realize what was happening when Congress rewrote bankruptcy law based on Corporate America's blueprint? Of course not. Now we reap what was sown. Bankruptcy should protect the little guy, but it is now written so things like this travesty of justice occur regularly. And yet most of you posting probably thought "yeah, those people in bankruptcy deserve to suffer because they are irresponsible." Here is the sad, but predictable outcome.

    Maybe you can admit government can have a positive role in reigning in Corporate America's excesses?
  • TO JOYCE BLYTHE
    "Everything we are going through right now, is what Germany went through during the Hitler years."
    WHAT?! are you KIDDING ME? my mother was born in germany in 1949, her and my grandparents moved here in 52. my grandfather fought in the war.

    the "HITLER YEARS" were the exact opposite of what we are facing now. germany was mostly a bankrupt nation after their loss in WWI, while hitler brought the country up to new economic and social heights. my grandmother calls the NS party years some of the best in her time there, prior to nazi party and the war.

    and look at germany now. have you ever been? i have. there isn't garbage or papers all over the ground. they have more parks and places for people to meet than we do. people smile when they pass each other. they have lost two wars that have destroyed their country, and they've rebuilt it twice to a higher standard than we have.

    watching youtube videos of hitler speeches doesn't make you a world war two or german history buff. SORRY
  • Chrysler Dealer
    Let's see if the "confiscated franchise's" are doled out to minorities.
  • A Letter from a Dodge Dealer
    What the government did was a CLASS A FELONY. Mr. Joseph should file criminal charges and a multi-million dollar lawsuit and take it all the way to the Supreme Court if necessary.
  • I'm ready
    I'm ready to stand up... but what can we do?
  • Chrysler Dealership Seizure
    Thats what it is...seizure. but don't worry Mr. Joseph. I would NEVER buy a Chrysler product anyway. Chrysler has consistently screwed every member of my family who ever made the mistake of buying one. And I certainly would never buy a car made by a governement owned dealership.
  • Dodge dealer screwed by Obama and his henchmen
    Obama and his doe-eyed Speaker is in charge now. Get ready to bend over many, many times before it ends. We now live in the Socalist Republic of America, thanks to the uninformed and government educated voting public.
  • Mikes comments
    I think that challenge you tossed out to try and build a car is pretty funny. I went on a tour of a Ford Ranger plant in St Paul MN once. It made me sick to see whats done there and know that these people are making a Sh!t load of money for doing something a monkey can be trained to do. The biggest challenge they faced was not falling asleep doing the same thing hour after hour. The guy putting on tires used a machine to lift and place them on a truck. Big deal. Over paid is what they were. Now Obama is going to kill the industry. How do you like that union lemmings? Nice pay back for helping to get him elected. Obama is a LUNATIC and needs to be stopped.
  • Outrage
    It is my fondest hope that situations like this ring from the top of the highest mountain until the greedy, selfish and completely led-by-the-nose media decides that they can make more money SPREADING THE TRUTH ABOUT THIS CRIME. Wake the #$%# UP AMERICA. See how much you like the way the guy speaks when you can't afford to keep the electricity on in order to hear him.
  • Dodge
    This really breaks my heart to read this letter. He is right, he is now ruined and it is no fault of his own. I am so sorry.
  • Truly frightening
    I'm literally speechless. I knew dealers were in a very tough place with this socialistic bullcrap but it hits an even deeper nerve to read something such as this that comes right from the horse's mouth. This IS NOT the America I love (loved?) and other than vote and influence others as often and as best as I can I don't know what to do to bring back this once great nation. It's totally depressing to believe, as I do, that the USA has seen her best days and it's all downhill from here.
  • A letter from a Dodge Dealer
    Welcome to our new world of "Hope and Change" courtesy of President Obama and the idiots that voted him in.

    No businesses prior to this administration have been taken over by the U.S. government and forced into these situations.

    Stop the madness and simply let free markets run.
  • Hope and Change
    This is what Hope and Change we all got bfrom the idiots that voted Obaba in.
  • On the fence
    I'll have to say I'm on the fence about this, my knee-jerk reaction was "poor little guy" but after reading some of the listener comments I think the guy may brought this on himself. In the end it will depend on several factors what side I'll take

    1. The terms of the contract he signed. If the contract allows the company to do this then its Theta Sierra for the guy, you signed the contract, you have to abide by it.

    2. Who owns the assets? If the building, cars, tools etc. belong to him then he needs to sell them off quickly before he loses the dealership. I they are owned by Chrysler then there's nothing he can do.

    3. What success has his dealership had? If he was doing his job well and selling cars despite the poor economy then yes, he might be getting the you-know-what, if not then this situation is an unfortunate consequence of his business decisions.

    4. What brought this about. Is this similar to President Obama demanding the CEO of the company resign? If so then our friend is feeling the power of CHANGE(TM Barak Obama and the Democrat Party) If this would have come about due to bankruptcy under normal circumstances then it stinks but it's ultimatly legal

    Bottom line, I feel for this guy I really do, he seems to have worked hard and seems to have loved his job and now this dream is comming to an end. It's not over yet though he still has hope. Worst case scenario he declares bankruptcy, he can use the down time to try and re plan his business strategy and reopen a new business when his credit is restored whenever one door closes another one opens, lets just hope that Barak Obama hasn't put brick walls at all of those openings...
  • Sean Foushee
    Sean you may be right in the instance of most franchises. The automotive industry is different. There is no law against what is happening. Chrysler has every right to evaluate the marketplace and demographics of any region or territory and eliminate dealership franchises. This is not uncommon. The reason this is getting such exposure now is because the elimination of franchises is being done on a much larger scale.
    Have you noticed that a few decades ago, there where many dealerships that carried only one franchise? The reason that is not the case anymore is because of this practice of franchise elimination from manufacturers. When one franchise is removed, chances are that dealership also has franchises with other manufacturers - as is the case with this dealer.

    I am not saying that this is good - in any way. This is just a fact and a risk that the dealerships are aware of when they sign into the franchise agreement.

    This dealership is a customer of the company that I work for and Chrysler as well as all of the other Automobile manufacturers is one of our vendors.
  • Riled up about chain letters...
    Boy, talk of rebellion and comparisons to Sovite era communism on the basis of a chain letter with no hard evidence to support that any of this happened. The far right sure seems every bit if not more radical than the far left.
  • Said by CowboyUp
    "It’s a natural byproduct of socialism, and since a majority of voters and electors voted to adopt socialism, this will become the norm."

    What a ridiculous statement. The voters of this country did not elect Obama because of his socialist views. Seriously, what kind of moron would knowingly vote for economic enslavement?

    No, instead I saw this as an 'American Idol' type of election if ever there was one. An election between a rockstar and a crusty old man.
  • @Leslie
    You forgot to say Heil Obama. How do you say that in Hawaiian?

    Oh, and your measely 9 million majority hardly constitutes a political mandate to turn the country towards fascism.
  • Geez Mike
    Where have you been?

    The airline industry in general would have ALL gone down the tubes if Delta, etc hadn't reorganized the way they did, that situation affect a lot more than just one airline! But they did it!

    I've watched documentaries on working on an assembly line, what's so difficult about it? An overhead crane does most of the work. Union workers get paid way more than they are worth and get much better retirement benefits than any of the rest of America. Except Congress. Oh and all government workers. Funny how that works.

    Workers (not just union), entrepreneurs, risk takers all TOGETHER are what made this country. Not ONE group, all. Three sides of a stool.

    But now, our government (both sides) are busy killing two sides of that stool. Building up the third. Guess what will happen?

    It falls.
  • A letter from a dodge dealer
    I wonder if party affiliation and campaign donations equated to which dealers stay in business and those who don't. The poor guy was destroyed without compensation, so so wrong.
  • Oh Chris bogus
    Hey, did you ever hear the one about the Polock who tried to commit suicide by running his truck in the garage?

    It ran out of Diesel first.......

    Better find some other source to blame for your Asthma.

    As it was so succinctly put in Animal House " Fat,stupid,and lazy is no way to go through life".

    Blaming a diesel powered vehicle for your problems is as BS as all the second hand smoke hysteria, ever wonder how the rest of the world runs diesels that emit far MORE pollution than our "oversize,mammoth Dodge diesel trucks" and do not seem to create problems for Asthmatics?

    Yea, one other thing, I get 24 MPG out of a useful vehicle, don't bother calling me to haul stuff that would break your Prius in half.
  • All you fools that keep referencing how bankruptcy worked Delta, NWA and the rest of the airline industry need to wake the fuc* up! What does the airline industry produce? Planes? No that is Boeing, Airbus, etc.. So what do they produce if not planes? NOTHING! They are a service provider! They provide a service that moves people! They manufacture NOTHING! The US Auto industry has put $60 Trillion, yes Trillion into the US Economy since 1900! Show me one industry that actually manufactures some thing that has ever done that! This is just the beginning. Now all of those Senators from other States that opposed giving a loan (yes, a loan to be repaid not a bailout) to the US auto manufactures will get to see first hand how integrated the industry is into this country. First the dealers will go, then all the business that surround the dealerships (Gas stations, convenience stores, etc.), right down to the guys that fill/supply the pop and coffee machines in those facilities. Also, stop bitching about unions. Yes a lot of them had it good, real good but that has changed. Everyone thinks it is BS how union employees get paid so much for building vehicles. Have anyone one of you ever done it? Like to see you try (No I am not a union worker either in the auto industry). Yes they were making really good money, but they were the same people who would not save their money. Instead they spent. They bought second and third cars, they bought houses, cottages, boats, motorcycles, snowmobiles and other high dollar purchases. The union workers supported this economy, they made it what it was today. All this will now change with the unions take such a drastic cut in pay. This is just the beginning.
  • Um
    Can you explain how this is Obama fault? My understanding is that dealerships are being closed down by the company itself. In fact, part of the bankruptcy decision was so that they could bypass state laws that have made dealerships untouchable.
  • I wonder...
    what the majority of the liberals drive today (or in their past life before becomming puppets to PresBo). I thought I read that the majority drove foreign made cars. The day they go after Honda, Nissan, MB, Lexus...will be a day we will know the truth to all of this goverment take over of our country. They are just starting with the less profitable companies now. I will never own GM, Ford, Chrysler ever again. I'm tired of supporting the goverment anymore than I am.
  • Uh...don't man the barricades over this one...
    Whoa! While this is a sad story, most of this isn't a BO/Dem issue. Speaking as a turnaround specialist who has worked with distributors before, there are a number of open questions/issues here:

    1) Is this distributor worse off than if the govt hadn't gotten involved?

    Given that the alternative was bankruptcy, this is probably a no - distributors tend to get knocked about when a manufacturer goes bankrupt. The reality is most distributor agreements are heavily biased towards the manufacturer (since most distributors were founded by relationship-focused ex-salespeople who are highly optimistic and routinely agree to contract clauses which give the manufacturer great power when the situation goes south) - and often the manufacturer has the right to terminate or "add" distribution in a market. The fact you invested several million dollars on Chrysler's behalf (or insistance) sucks but...did you bother to get a committment or piece of paper stating some type of quid-pro-quo committment to your business? No - and you are correct that "they don't do that"... but you accepted that deal...

    Inventory buyback and factory incentive money are common issues that need to be negotiated in one of these agreements. However - these become risk points with a distressed manufacturer (because you can't sue to uphold the agreement) and are issues that would have occured with any Chrysler bankruptcy, regardless of government intervention...

    2) I am surprised that Chrysler isn't doing more to relieve the parts and inventory situation...that is a ripe for market disruption (seriously, what would happen to pricing power in the local market if you dumped 125 "like-new" vehicles at bank liquidation prices... you would sink the remaining dealership...

    3) One possible set of "good questions" is who owns the remaining dealership - did any dealers receive preference in the process from factors unrelated to their marketing effectiveness. Are they minority, female, or have a history of political contributions (or activity, connections)... I suspect a degree of sensitivity around this in the dealer selections but it would be interesting to see how this played out. The rationale for terminating the dealers is unclear...since it probably doesn't cost much to support term. Are they trying to raise resale margins to improve the financial condition of the dealer base? This isn't an economy where I would terminate dealers for lack of volume...since they probably all suck equally... (since autos are a one or two product/location deal vs. a multi line industrial distribution setup)...

    There's enough legitimate outrage - while this is tragic, it's not BO's fault (unless you find something on the preference piece)...
  • Dodge Diesel Fumes
    I have severe Asthma.
    Dodge trucks, the oversize mammoths that run on diesel, really kick out the pollution. I despise the things, and it wouldn't break my heart to see Toyota put the whole Dodge brand under.
    Gee, it must have been nice to be rich and important, welcome back to the real world.
  • Letter from Dodge Dealer
    This is what Democrats and 53% of voters who voted for Obama want. If you want see the future of America, Hawaii is the future how America will look like. We are now all Democrats. Democrats Rule!
  • Reply to Chris
    Waaaahhhhhh? Too bad? We consumers will pick over your dead assets and prosper?

    Just wait until PREZBO and Fancy Nancy infringe upon YOUR livelihood. Then you'll be crying for real. It's class warfare jerks like you that are going to (actually have already begun to) ruin this Country. Then, you'll stand by and whine because the rest of us aren't fixing your mess fast enough for you. Get your own life and leave the rest of our lives alone.
  • Awful
    Sad to see someone who built something from the ground up be f'd so bad. however, I bet the same thing would have happened if McCain was president.

    Two side of the same coin.



    Ron Paul 2012
  • Whining Dodge Dealer
    I'll bet that there were Studebaker dealers who felt the same way when Studebaker went under.

    The economy changes. Companies rise & fall. Mr. Joseph bet his families livelihood on a company that was failing -- and has been known to be failing for years. He has had years to change business, but he didn't do it. Instead, he put more money into this failing company.

    Mr. Joseph is an idiot. Mr. Joseph is a whiner. He had plenty of warning that Dodge was in trouble -- the whole world has known for decades that Detroit's business model was doomed. Mr. Joseph made a bet & he lost. Too bad. Life is rough.
  • J Cooper
    I'm not sure where to start! This is all too depressing. Do you have any ideas, I'll listen!!!
  • NOTE TO ALL OF YOU
    When do you people want to stand up,I'M ready,I'm not sure you people are.It's hard to stand up alone. Let me know!!!4MPQJ
  • @By Chad @ 05/20/09 10:42:48 AM
    So lemme get this straight, Copy is the piece of garbage but you’re the one hoping for terrorist attacks? That about sum up your position, psycho?
    How much does it make you Bush fans cringe knowing this guy is on your side?

    Hey, Killer, I see what you mean by “hate-filled right wingers.” Nice call, dude!
  • The Dodge Dealer in Florida
    Are we sure we are not living in China? Has anyone checked lately? The Democrats have got to go people!
  • @Copy
    I asked you a question: when are you socialists planning to nationalize the entire economy?

    Just want to know ahead of time so those of us in the productive class can move our assets offshore.
  • Tell me
    Are all these people using clever schoolyard insults like "dumbocrat" republikkkans?
  • So WHO is terminating this and HOW?
    He doesn't say who is telling him this, only "I was notified that my Dodge franchise ... will be taken away from my family ... without compensation..." Is this a Chrysler decision? A Federal Government decision? Does his dealership contract with Chrysler say they can do that? If it does, it was a regrettable decision to have signed it. It's incredible that his inventory HE BOUGHT can be taken from him without any compensation. Interesting about the Alabama law. No doubt this dealer is contacting attorneys left and right about this issue. I wonder if Boortz would be interested in coming out of retirement and taking the case.

    And Copyleft, you forgot Eastern which went bankrupt thanks to capitalism, er, uh, the pilots' union.
  • Ditto The Note to O
    Read the subject line.......
  • @Copyleft
    You are correct, those companies did go belly up and it caused a lot of grief. The big difference is, look at us a few years later, those companies are gone and we don't have tax dollars being used to continue to prop them up. The same thing should have been done with Chrysler and GMC. Instead we gave them billions and the govt took them over anyway.
    The fact that you cannot differentiate the difference between the situations tells me that you have your head up your rear. What flavor of kool-aid do you have in your bowels?
  • Hey Copy
    Those are NOT Chrysler's assets you moron they belong to GEORGE!!!

    I have heard this story so many times, they need to file a class action lawsuit. Too many of the terminated dealerships are profitable entities, not only for themselves but for Chrysler. Some have asked Chrysler to explain the formula used to determine who gets shut down and who doesn't. They can't get answers. This is the pits.

    Smooth Operator, you are exactly right! I watched two documentaries about Hitler over the weekend. I've heard his speeches before, but they now are ringing in my ears and raising my blood pressure! He sounded like Obama! I tried to posted something about that yesterday, but was too late in the day I guess.

    Everything we are going through right now, is what Germany went through during the Hitler years.

    I'm sick....
  • Poor Guy
    My wife has a GMC envoy that we just paid off, I have had three jeeps in the last 10 years. After seeing what is going on, we are getting rid of the GMC for a foreign made car (I'm thinking lexus or mercedes benz). I'd sell my jeep right now too but hell, who's gonna buy it? Might as well run it to the ground. Like other on here, I will never buy a union made government owned American car again. I feel sorry for Ford, they think they are in the clear, but how can they compete against govt subsidized car corporations.
    I feel sorry for minorities, it's sad to see that the first minority president is turning out to be such an a-hole, not really the greatest precedent.
  • Bryan
    Said..."Also, people if your going to post leave name calling out of your posts. Saying things like PrezBo makes your point look weak."

    Are you saying that "PrezBo" is a bad word?? If it is then maybe we should be writting it like P***B*!

    When he starts acting presidential and putting America first, he will start earning respect, until then he will always be ridiculed.
  • Cars Dealer
    I feel for the dealers that are being left out in the cold. There should have been something where the inventory was taken back if they wanted out of the contract or the dealers that survive must draw cars from the loser dealerships first as a part of being selected for survival.
  • Dealer Agreement Termination
    In Alabama at least if a manufacturer terminates a distributor (dealer) agreement the manufacturer is obligated by Alabama law to take back all items the distributor (dealer) purchased from the manufacturer prior to the termination and give the distributor a 100% refund plus pay freight to return. Been to court on this twice while working for a manufacturer and lost both times.
  • re:chad
    hey, maybe I'm wrong (it's happened before) but my understanding is the govt prevented chrysler from going ch 7.

    delta did not go ch 7 because it was in better shape.

    with govt backing, chrysler was able to restructure under other chapters of bankruptcy.

    I'm no expert - anyone have the real deal on this?
  • To: CowboyUp
    You're so right! No company EVER went out of business or declared bankruptcy before the Democrats took over.

    There has never been anything but success for every corporate giant up until now, and no franchises have ever been closed down until 2006.

    Just look at the smashing success of Enron, WorldCom, Texaco, Delta, Mirant, Pacific Gas... all HUGE success stories for capitalism free of the involvement of that pesky Obama administration. Everybody came out a winner in those. LOL!

    Great, great stuff. You folks are massively entertaining today.
  • Dodge Dealer.
    Waaaahhhhhh!!

    Too bad.

    We consumers will pick over your dead assets and prosper.
  • Capitalism
    I didn't see any of obama's books being given away did any of you? Doesn't he realize he became a millionaire off of capitalism? Selling the books and pocketing the proceeds is the evil of capitalism isn't it???
  • Dealer
    Sucks to be him.
  • Auto Industry
    Why on earth can't the dumocrats see what unions are doing do businesses?
    Why is it ok to leave 70+ people at thousands of auto dealers without a job? How will that help the economy?
  • Chrysler Dealership
    If you voted for Obama, that was your first mistake. Do you support the UAW, then that is your second mistake.

    When you start to layoff employees, identify those that voted for BO and lay them off first. A good lesson in economics for them.
  • He says he did nothing wrong. That is incorrect. He was doing business with Chrysler, the unwanted redheaded stepchild of the auto industry. It is not like Chrysler was the hot thing before the recession set in. It wasn't. Caveat emptor. You chose poorly.

    And the idea that the US auto industry was anything remotely comparable to the free market is just absurd. Again, this was true before the recession. The downturn just took the mask off.
  • Government Outrage
    This is very sad. It is horrible that the government is taking over and costing us jobs and good quality of life. I have lived through a similar incident with my husband, a doctor. He also was pushed/forced out of private practice. Insurance companies and Medicare did not pay enough to cover our overhead and salaries. We had to move out of town and join a group practice in order to survive. Our country is in a sad state when these atrocities happen. Sunshine Dodge-Isuzu was a landmark company in its town. When it goes the town will lose a great company, taxes and many jobs. When my husband left private practice and we moved away there were patients crying and a big void in the medical community. How can all of this be considered an improvement in our lives??? This is a tragedy that will take years/generations to recover. Free market is not perfect but at least you have a chance with hard work. In a government/socialist market why bother working you can not get ahead unless you have connections. Makes me very mad!!!!
  • Looks like Mr. Joseph will have to sell his assets for pennies on the dollar.
    That other dealership is just waiting for the price to drop far enough. No doubt that was part his deal with the dp or union.

    Either Mr. Joseph has displeased the dp, the dealer getting the franchise is in better than him with the dp, or he has displeased the union. When the dp/socialists are in charge, it’s not what you own, know, and can do, everything depends on who you know. It’s a natural byproduct of socialism, and since a majority of voters and electors voted to adopt socialism, this will become the norm.


    Those lamely trying to blame this on “corporate America,” or “capitalism,” are ignoring the fact that this didn’t happen until after the government took over Chrysler. This is another “ugly side” of socialism. It’s interesting to see the dp/left regulars here come out and defend this steaming pile in any way.
  • Reorged Chrysler
    Ah the wonders of this new morot car company-

    Obama -
    Fiat
    UAW
    Chrysler

    New Symbol

    O-FUC
  • What can he do to prevent this?
    He and his family should take up arms against the oppressor. Eventually it will come down to armed revolution to remove ourselves from the power-hungry politicians in charge of this once-great nation.
  • Something I would like to point out:
    Is that the left-wing goons who post on this page simply for dissension's sake even found something to try to argue against this story. Proof they do not have views of their own unless one counts believing the opposite of what the "hate-filled right wingers" believe.

    Additionally, I cannot get over how often lefties question the authenticity of something like this, considering all the honesty present on their side of the aisle (ACORN, voter fraud, Dan Rather immediately come to mind).
  • to Mark and others
    The problem here is that Chrysler and GM did not go straight into bankruptcy. Instead our GOV got involved and now it all F**K up. If Chrysler and GM would have done like Delta did and not have all the GOV interferance they could be going through the process and coming out a better company. Instead the GOV is involved and they are not going to improve their buisness models or get rid of the unions. Instead they are now going to be owned by the GOV, no one with half a brain will buy from them so they will NEVER make any money. So the US Tax payer are going to be supporting those Union garbage forever.

    I hate to say this but it would not bother me if a terrorist blew up the Press and all these worthless congressman. But we know that will not happen because they are loving this.

    Copyleft you are truely a piece of garbage.
  • Oh well...
    "Who is John Galt?"
  • Dead Horse
    This is wrong, but must be legal according to the franchise agreeemnt. As George should know, this has been a train wreck coming for a long time. Sell off as much Chrysler (cars and parts) as you can and get off the dead horse and get on something without the UAW.

    Anyone want a great deal on a Chrysler? I didn't think so...
  • Chrysler is shooting themselves in the foot
    So Chrysler closes this guys franchise (illegally). So what's this guy going to do? Sell, sell, sell, that's what. He will no longer be bound by franchise pricing restrictions, so he, and others like him, are going to be putting a lot of "new" Chryslers on the market for cheap. Cheaper than any legitamate dealer will be able to sell them for. Will he lose money? Sure he will, but maby he will be able to scrape through his crisis intact. Those cars won't sit on the lots, they will be discounted until they sell. It seems to me that Chrysler will be off to a great start as they come out of a bankruptcy only to compete with a fleet of cheap cars and trucks that they unofficially authorized to be sold at bargain basement prices.
  • Atlas Shrugged application to Mr. Joseph's situation
    I'm so sorry, Mr. Joseph. You are just the beginning of the noticeable destruction of life and liberty in this beautiful country.
    Ayn Rand did predict everything that is happening today and she wrote Atlas Shrugged in the 50's. It came off as science fiction when we read it then. Probably good that she didn't live to see this day....
    This is a paragraph from her book...."Do you wish to know whether that day (that society vanishes) is coming? Watch money. Money is the barometer of a society's virtue. When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from nen who produce nothing - when you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed. Money is so noble a medium that it does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot."
  • Rob
    You have no idea what you are talking about. Reading your blowhard comments is a waste of time
  • Just Walk Away
    Clearly, it's time for the productive to go on holiday. If the government is going to facilitate handing the assets of the productive (entrepreneurs) over to the looters (unions), there's no point in showing up. Leave the keys in the cars, leave the doors unlocked, and walk away. The looters are now in charge. Let's see how long it takes them to figure it out. I recommend we keep a close eye on California for preview into Obama's Change We Can Believe In, AKA USSA.
  • Chrysler Parts
    On another subject, I had a flex pipe go bad on my Town and Country. Chrysler wanted 550 for the part (20 inch pipe). I found an aftermarket for $40 on ebay NEW. My mechanic said it was actually better quality than the Chrysler part.
  • Is this even authentic?
    First, is this letter even authentic or a hoax?

    Even if it is, does the guy own the building and inventory with a personal loan? If so, no one can touch his privately owned inventory. He'd probably be forced to change the name.

    More than likely, his inventory with the 3 million balance sheet is owned by Chrysler. And Chrysler is selling (transferring) that inventory to another dealership.

    What he needs to do is become an import dealership and hire an attorney to make Chrysler take on some of the cost of buying a new franchise. That looks to be the only true financial loss outside of owning obsolete parts due to not being an authorized dealer any longer. That could be sold since we know that Chrysler parts break quickly.

    Mopar parts suck.
  • Welcome to the United Socialist States of America. enough said
  • Precedent
    The precedent has already been set. Contracts are no longer binding.

    I wonder what would be said if this was all happening under a republican administration (which it probably would have if McCain won).

    Crazy times, but not the time to roll over and take it.
  • I'm not sure what the dealer wants, a hand out?

    What is is complaint? He continued his parents business model, and remained with Chrysler. I would have bailed on that company in the 80's.

    Free Market, means you can fail. Deal with it. I have to deal with it every day, just like 90% of the rest of the nation.
  • @Copyleft
    A Union wouldn't have saved him. It was a crappy franchise contract that killed him. He signed it, its his fault. The Chrysler model for dealerships sucks. Dealerships should get a factory discount (up front) on the cars and have to purchase them outright, just like every other retail good. Then this wouldn't matter, he'd have his inventory and could liquidate it as he choose. This is all George's fault, I have little sympathy for him.

    Also if dealers owned their inventory outright they could diversify their inventories to their consumer needs. There would be less waist in the system since manufacturers would only be building cars that were already bought and paid for.
  • Dealership Outrage.
    As Stearman suggested, burn it to the ground, like the oilfield in "Atlas Shrugged", or sit there with a shotgun, and wait for them to come for you.
  • this is funny
    Chrysler is the one making these decisions after going BANKRUPT!

    What's funny is everyone is like "how can this happen??" "someone should do something!!"

    Uh, hello? Either Chrysler was allowed via our tax dollars to not shut its doors entirely and restructure under bankruptcy or it would have folded completely. Either way, people who relied on chrysler products for a living are going to get hurt.

    Chrysler is doing a REALLY bad job in how they are treating these people and it's one more reason I would never EVER buy a car from them but, that aside, this is the free market people!

    Businesses fail, people get hurt... You all sound like this shouldn't be allowed to happen. What do you think would have happened if the govt did nothing?? Chrysler would magically start selling cars??? At least they aren't closing ALL the dealerships.
  • It is Obama
    Sorry, you can try to blame the corporation. But who forced thsi bankruptcy skirting the normal order of creditors?

    That was none other than Team BHO, not Chrysler.
  • This sucks for the dealer
    But the guy signed a contract. Neal preaches personal responsibility all the time but this guy tugs at his heart strings...give me a break. While this sucks for the dealer and his employees, he put himself in this position by signing the franchise contract with Dodge in the first place. This is pure capitalism at its best; culling the weak and underperforming from the herd.
  • Another suggestion
    Mr. Joseph should get every employees, and some friends and family, get every car on his lot and go blockade the nearest federal building!
    Note to Copy Left : Sunshine Dodge is a privately owned small business, not a cog of Chrysler Corporation. Your ignorance is especially obvious today.
    Note to D.D.: what is in any way funny about the Dodge Dealer's plight??
  • Um...
    How would things be any different if Chrysler had filed Chapter 7? I'm in the Free Market camp and I wanted them to file bankruptcy. How would he be any better off?

    The only part that would be different would be: "will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them", which I don't think is even true. They are closing down franchises not giving them to different owners, they are closing them. If they are in fact giving them to new owners that would be wrong.

    I don't understand this guys problem, in the free market, Chrysler would have had to file Chapter 7 and all their assets would have been seized and sold off to pay off outstanding debt. This guy would be in no better shape.
  • never again
    I have owned GM and Dodge cars and vans over the years but never again. I will never buy another GM or Crysler car again, not even used. Ford or Japanese for me from now own. Plus, withhte new milage standards imposed by "THE ONE", you can expect the used car indistry to skyrocket.
  • Voting Record
    I wonder how many of his employees voted for PrezBO?? It would be interesting to know. If any of his employees did, then they are getting exactly what they deserve.
  • When they came for the executives, Stan, Gavin and Copyleft said nothing. Why should they, they aren't evil, greedy execs.

    When they came for the car dealerships, Stan, Gavin and Copyleft said nothing. The dealers are just minor cogs in a system.

    When they came for Stan, Gavin and Copyleft, no one was left to say a thing.
  • Franchise v. Employee, not the same
    Mr. Capitalist, you are right that in tough economic times a company can fire its employees, and that some of them might be productive and hard working, but you fail to understand the concept of a franchise.

    Franchisees are protected from the franchisor wanting to simply shut them down by contractual law. These dealers are supposed to be protected, they are not employees of Chrysler, they are their own small business that has agreed to a set of terms in order to carry both the Dodge name and their vehicles (hence the remodel mentioned in the article).

    However, in order for a franchisor to pull a license from a franchisee they need to show documentation that they have tried to correct a series of problems with that franchisee in order to legally dissolve the contract. That is not happening here with these dealers. These franchise licenses are not something Chrysler can just pluck from one person and give to another, these are bought and paid for contractual agreements and what Chrysler and GM are doing is illegal.
  • Dealship Taken from owner
    when I read this to me it looks like the owner of the dealership is asking how the dealership he paid for can be given to some one else with out his fore knowledge.
    Also, people if your going to post leave name calling out of your posts. Saying things like PrezBo makes your point look weak.
  • options
    First, I am no expert in the auto world so....

    There are other car manufacturers out there. Why not go Toyota? I see that he already has Isuzu dealership. Chrysler obviously doesn't want your business, someone else surely does!
  • stearman
    i was thinking of the same thing...
  • How did this guy run a business
    I thought Chrysler sent out the letters, not the government. Sounds to me like he is blaming the government cause his franchisor cut him loose. If he is as successful as he makes himself out to be, then he shouldnt have a problem getting back on his feet.
  • Never another Union vehicle
    I will no longer buy any union made vehicle as long as I can help it. Thanks democrats, thanks ignorant masses, thanks unions ....thanks for making this country a shameful and unjust place.
  • "Brother you ask for it"
    I can't recall but I think it that was a quote in Atlas Shrugs
  • Fascisms Fallout
    Mr. Joseph should have seen the writing on the wall and donated heavily to Il Duce Hussein and his New American Crypto Fascist Party.

    Maybe then, like other in Congress, he could have found himself benefiting from the take over of private businesses by His Excellency, Il Duce obama.
  • this should be a dream come true for Copyleft
    Copyleft you should be elated that this is happening. Your guy is in charge with all of this "Change we can believe in." Meanwhile with the government "trying to make it fair" will degrade the actually quality of goods and services coming from this economy.

    Pat yourself on the back. As for me, I am moving my money to economies that are growing, China and Brazil. They have become more capitalists than the US.
  • Elections Have Consequences
    Florida when whole square for the Marxist, hook, line, and sinker. So sorry you got burned, but look at it this way. Your loss is for the greater good of America. Think of all you can now give back to your community. Think of the poor people who can now afford to buy your cars. (Personally, I would hire a good lawyer, and sue the pants off the bastards, but then again, I'm a hate filled, right wing, racist, homophobic, conservative.)
  • You tell 'em!
    Good luck to you, Mr. Joseph. I wonder how many of your employees voted for Obama? Make sure they understand their new unemployment is a direct consequence of their vote. Good luck in court, if you can afford any legal fees to fight for your "just compensation", as guaranteed in the Constitution for any victim of a public taking.
  • How Can This Be Stopped?
    Not that this is any surprise, but our elected idiots live in their own bubble up in D.C. How can a situation such as what is happening to Mr. Joseph be stopped? He has to have SOME form of legal protection, doesn't he, or does Dodge have the right to just screw him over like that?

    This country is going to hell. Forget the handbasket- we're on the A train.
  • Makes me want to just give up
    This letter makes me want to just give up. A family business for 35 years and now the family is bankrupt. Most appaling is the dealership is going to be given to someone else!!! WTF!!!! Why? Because they dared to live the American dream instead of depend on government. Neal.....is there any hope for us?
  • Where will it stop?
    If the US can do this to a family business, what and who is next?

    I feel for this guy. He was a success & many persons were dependent on him for their livelyhood. This should not be happening in the USA.
  • The Stealing of America
    Maybe you could change your name to initals, say... UAW or something.
  • How it can happen . . . simple:
    A company experiencing tough times can lay off employees, may of whom have a record of years of distinguished service and hard work.

    Similarly, a company experiencing tough times can terminate franchise, licensing, joint venture, partnership, or other such agreements, within the bounds of whatever contractual language is in effect.

    I thought visitors to ths site supported capitalism. Capitalism is good but like most good things does have its uglier side sometimes.
  • Ahhh...that kind of change...
    Well, Mr. Joeseph, welcome to the 'New America', the 'remade America', the 'Citizen of the World America'. Because after all, Colin Powell says this is what Americans really want, more government, more taxes. I'm going to blame some of this on the Democrats, but I reserve the right to place blame at the feet of Republicans for dicking around with their opportunity to keep this country free and under less government regulation. I ran out of breath typing that last sentence. Anyway, this is 'Change' we can believe in. It used to be a private enterprise, Mr. Joeseph. But now, we have the friendly hand of government guiding us through life. I could be wrong, but this administration looks like it will put more people out of work( while simultaneously creating new 'green' jobs!)than any recession we've ever seen. Maybe you're dealership was viable, maybe you weren't moving cars off the lot fast enough, I don't know. But this is no accident. And it probably won't be the last time we see this happen. Now we know why Ford say 'Hell no' to TARP money and the big banks are trying to pay the money back. The spectre of Barney Frank and Timmy G running industries into the ground should have everybody, including Colin Powell, soiling themselves. Ironically, all my Father ever owned was Chrysler products. Now, that's loyalty!
  • This is the Change that America voted for...
    He needs to ask how many of his employees voted for Obama... During the entire election people said he was a socialist and they were ran out of town as nuts... ONE BIG A** Mistake America.

    Your vote is your money...spend it wisely.
  • how?
    how can a family owned business by taken from them? i can see how to state can do this, unethical as they may be. but giving it to a Dodge franchise. i'd like to know more about this
  • Florida Dodge Dealer
    Dear Mr. Joseph:

    Did you vote for Barack Obama? If so, then shut up, bend over, and take it like a man, because THIS is what you voted for.

    If you didn't vote for Barack Obama, go get your neighbors who did and see if THEY will buy your inventory. (Good luck with that.)
  • Quit Whining, George
    It can happen because you chose to be a minor cog in the mismanaged Chrysler machine, and a combination of bad economy and bad executive decisions have wrecked the company.

    Now the assets are being sold off in a desperate attempt to keep Chrysler alive... and you simply don't matter against that backdrop. Welcome to Corporate America.

    Too bad there was no one in the hierarchy who was looking out for your little business and fighting for your interests. But then, that would require some sort of "organized labor force," and we all know that's forbidden.
  • a letter froma Dodge dealer
    "HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?"

    Easy, people voted for personality instead of skill.
  • This makes me madder than hell
    Are we still living in America or is this now communist Soviet Union? This is just plain wrong on every level!
  • Why?
    Why would anybody, in this day and time want to buy a dodge? I gave up on american made junk in the 80's. Had he been selling something worthwhile this story would be different.
  • dodge dealer in florida
    dearest george, my heart is breaking for you, your family, your employee's, you town...the reason this has happened is because we are now living in a society that is selfish, and want the government to take care of them...they do not give a dam about the price that is paid for it...the united states we know and love is on the way out the door, and there is not one protest from the citizens of america...sham on all of us! You should save all the parts for the trucks, because people will not give up there trucks, the govt will have to pry them out of their garages. they will not buy the barbie and ken cars you can depend on that...eventually we will look like Cuba, and will need every part you have in stock...and you should charge nine times the price for them....If I were you, I would board up the franchise from top to bottom, through away the key, and tell Crysler to get bent..let them clean up the aftermath...you did your job and did it well...somebody has to stand up and say enough is enough...
    best of luck to you and yours we will be wishing the best for you.....
  • If I were Mr. George C. Joseph...
    I would burn that dealership to the ground before I'd let the Looter in Chief beat me out of it.
  • More Change We Can Believe In
    Naturally, not only is this man losing everything his family has worked for, he also gets to see it handed over for free to someone else after it gets confiscated.

    I own a 2004 Dodge Ram 1500 pickup. It will be the very last Chrysler product I ever own. Period. Ditto GM... I don't buy from government-owned entities. I will repair what I have or buy foreign from now on.

    That's a reaction fomented by bitterness... but it won't help this man, who will probably have nothing to show for all those years of hard work and playing by the rules.

    This also highlights Neal's point that the actions of this totalitarian administration will eventually result in the nullification of contract law.

    If contracts don't have to be honored, people will stop making them. When that happens, there will soon be no economy, except that which exists at the behest of Central Planning.

    So what's the answer? DRIP? Revolution? This cannot be allowed to go unanswered if we are to remain (at least partially) free.
  • What I can't believe is how liberals ranted about George W. Bush circumventing the Constitution during his administration (which I dare anyone to prove) and yet here we have PrezBo openly running circles around it and those same louts say nothing.

    There are laws against some of the things he's doing but they're ignored. Yeah, I know, the Anointed One can do no wrong and those laws only get in the way of real change.
  • Once Again
    This is not the only story like this I have seen. Everytime Obama and Congress open their mouth, this happens, people suffer!

    Please remind me, just how is Obama doing it better the Bush?
    I guess this is CHANGE WE CAN BELIEVE IN!


    AND IT KEEPS GETTING FUNNIER!
  • Barack Obama's plan for America...
    ...makes me want to throw up.
  • Flashback to 1933, the rise of fascism
    In every single case before the rise of totalitarian governments there had been a period dominated by economic planners. Each of these nations had an era under starry-eyed men who believed that they could plan and force the economic life of the people. They believed that was the way to correct abuse or to meet emergencies in systems of free enterprise. They exalted the state as the solver of all economic problems.

    These men thought they were liberals. But they also thought they could have economic dictatorship by bureaucracy and at the same time preserve free speech, orderly justice, and free government.

    Directly or indirectly they politically controlled credit, prices, production or industry, farmer and laborer. They devalued, pump-primed and deflated. They controlled private business by government competition, by regulation and by taxes. They met every failure with demands for more and more power and control … When it was too late they discovered that every time they stretched the arm of government into private enterprise, except to correct abuse, then somehow, somewhere, men’s minds became confused.

    --Herbert Hoover, 1933

    It's quite obvious to most of us on this board what's happening here, but apparently Mr. Joseph didn't see what was going on around him. Now he does. The rise of national/socialist fascism is upon us in the form of BHO.
  • Rand was a Prophet!
    Dear God! This sounds like it came right out of "Atlas Shrugged!"
  • Just the beginning
    of the fascist / statist regime. Stick around for the sequels and the exciting final show.
  • A Letter From A Dodge Dealer
    Money had to pass hands somewhere, ask the former ILGov...
  • Via an election
    Via the election of a socialist / fascist dictator by the ignorant masses, eager to punish the hard working Americans through the use of the political process / force in an effort to get "their fair share" that they neither worked for, earned, or even remotely deserve. It happens when we no longer teach the principles that founded this nation but rather some form of Marxist ideals that have failed historically, and killed more people than all wars combined. It happens when we elect tyrants and dictators rather than servants.
  • The stealing of America
    Obama sucks........
  • Note to Obama
    F - - - You, Obama !!!!!!!
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