Letter from a Dodge dealer

[jsledder]

Came across this on a Cummins forum. I hope he misread the letter he got or something, I don't see how they could come in and take everything that is his??


May 19, 2009

Letter from a Dodge dealer

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

 

[Gainster]

I wonder if this is them?
http://www.autotropolis.com/car-dealers/sunshine-dodge-isuzu-4248/

 

[Himark]

Yep I think it is a crappy deal for sure. But he did do something wrong, he invested his $ into a risky market like any of us do in the stock market. It is a gamble and sometimes you lose. Granted seems unfair but they filed bankrupcy and that allowed them to re-write the agreement. He also stated it is a private business and a "franchise" is a long way from that. I have recently went through a franchise that I own go through corporate bankrupcy and my agreement has changed and I have nothing to say to change it unless I just give it up for 0.00$ YES I am mad about it but who can I blame?? myself, I should of invested in a different brand or done more research and not agreed to all of it. I had a choice and so did this guy.

 

[Gainster]

The Obama camp seems to believe that the Chrysler bankruptcy is a template for what it wants to achieve at GM, but that's a critical mistake. Chrysler was a shell of a company, having been stripped of engineering and design talent by Daimler (DAI) and then mismanaged by private equity owner Cerberus Capital Management. The arrangement is to give the United Auto Workers 55% of Chrysler's shares and to give management control to Italy's Fiat (FIA.MI) group. This may work in political terms, but it's not a real-world business arrangement. The supposedly rescued Chrysler is, in fact, a house of cards that almost certainly will come tumbling down.

copy from rcp

 

[UintaVentureBoys]

you'd think with 35+ years of loyalty and the fact that he seems to have been successful (up to this point) they would offer some type of compensation AT LEAST!! Sounds like a tripped up deal to me..

 

[milehighassassin]

Who is going to compensate them? The government? Why? This is an investment, the letter didn't mention how much money they made for the past 35 years. Chrysler owes them nothing. I am SURE they signed an agreement with Chysler.

This sucks and I really don't see how closing down more dealers will help Chysler or GM. They both get paid the same amount for each vehicle that is sold. It doesn't matter if Dealer A sells it or Dealer Z. The consumer might get a better deal if there are more dealers because he has more dealers to negotiate with, but Chrysler is getting "X-amount" no matter what.

 

[sledin]

This is happening to a friend of mine also.He is the only Dodge dealer in town and he is s.o.l. after 30 plus years!!

 

[Beels]

It's a flat out bad deal all around. This dealer is taking it dry because he followed the terms of his dealer contract and mortgaged the place to renovate to Chrysler's new standards. I can see why he's upset.

I'm not in favor of governments bailing out businesses, but it slays me how the financial industry can be propped up with very little strings attatched, but the auto industry who employs way more people are made to do handstands and juggle with their feet to get a sniff of anything. It just doesn't make sense.

 

[jsledder]

"My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars."

"Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service."

Should the Government help/step in???? NO!! (and they shouldn't have to begin with, all they did was delay the inevitable and throw billions of dollars away, again) But the above statements are what's wrong with that story, he's going to have to take pennies on the dollar for whatever he ends up with and as far as how much he's made over the last 35 years.... well most of that is likely tied to his inventory or cost of running the business which hasn't been real profitable as of the last year or so. I assume that these dealers basically own the vehicles on their lot, or a bank owns them?? Correct? Or does the manufacturer give them the vehicles to display until they are sold?? (doubtful). That would be like SLP sending me all the inventory I want and not billing me for it until it sells.....

Chrysler should not be able to "give" his franchise away that he bought and paid for and there should be an offer to purchase the inventory.

 

[UintaVentureBoys]

"My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars."

"Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service."

Should the Government help/step in???? NO!! (and they shouldn't have to begin with, all they did was delay the inevitable and throw billions of dollars away, again) But the above statements are what's wrong with that story, he's going to have to take pennies on the dollar for whatever he ends up with and as far as how much he's made over the last 35 years.... well most of that is likely tied to his inventory or cost of running the business which hasn't been real profitable as of the last year or so. I assume that these dealers basically own the vehicles on their lot, or a bank owns them?? Correct? Or does the manufacturer give them the vehicles to display until they are sold?? (doubtful). That would be like SLP sending me all the inventory I want and not billing me for it until it sells.....

Chrysler should not be able to "give" his franchise away that he bought and paid for and there should be an offer to purchase the inventory.

I feel no pain for the fat cat in the office.. I was thinking more like, what are the people working to actually make things happen going to do?? Technicians, salesman, finance guys, secretaries, and even the carwash kid are all losing their jobs, pretty sure some of them have to have families to think about as well.. forget bailing out the dudes wallet, what about the white collar workers losing their lively hood?? Not trying to argue it just sucks having a family to think of and losing your job.. what did he say 50+ employees??? pretty crappy deal on that end of things if you ask me

 

[skibreeze]

I feel no pain for the fat cat in the office.. I was thinking more like, what are the people working to actually make things happen going to do?? Technicians, salesman, finance guys, secretaries, and even the carwash kid are all losing their jobs, pretty sure some of them have to have families to think about as well.. forget bailing out the dudes wallet, what about the white collar workers losing their lively hood?? Not trying to argue it just sucks having a family to think of and losing your job.. what did he say 50+ employees??? pretty crappy deal on that end of things if you ask me

Spoken like a true democrat....

Sorry, I had to say it. If that guy hadn't spent the money to buy the dealership in the first place, none of those jobs would have been created. Do you honestly believe that the guy has nothing to ***** about?

 

[snowmobiler]

welcome to the out of work club.its a shocker at first but gets better after time.

 

[jsledder]

I feel no pain for the fat cat in the office.. I was thinking more like, what are the people working to actually make things happen going to do?? Technicians, salesman, finance guys, secretaries, and even the carwash kid are all losing their jobs, pretty sure some of them have to have families to think about as well.. forget bailing out the dudes wallet, what about the white collar workers losing their lively hood?? Not trying to argue it just sucks having a family to think of and losing your job.. what did he say 50+ employees??? pretty crappy deal on that end of things if you ask me

Well, without the "fat cat" those people wouldn't have the jobs they have now. Without people like "the fat cat" and so many others starting their own business and employing people there would be a lot more unemployed or working for companies with much bigger cats that care a lot less about their employee's.

Bad deal all around......

 

[AKSNOWRIDER]

It's a flat out bad deal all around. This dealer is taking it dry because he followed the terms of his dealer contract and mortgaged the place to renovate to Chrysler's new standards. I can see why he's upset.

I'm not in favor of governments bailing out businesses, but it slays me how the financial industry can be propped up with very little strings attatched, but the auto industry who employs way more people are made to do handstands and juggle with their feet to get a sniff of anything. It just doesn't make sense.

the goverment should never have bailed out companies..they should have bailed out the taxpayers..that would have done more for this economy then all the other crap they have and are brainstorming...all they had to do was not tax the average american taxpayer for 6 months and this economy would be in great shape..as would the banks, the car dealers, and everyone else(cant keep taxing all the peeps money, then give it to bussiness's and programs because the peeps have no money left to buy stuff with..so the bailed out bussiness's have no one to buy their stuff...vicious circle ......)

 

[BIG JOHN]

Yep I think it is a crappy deal for sure. But he did do something wrong, he invested his $ into a risky market like any of us do in the stock market. It is a gamble and sometimes you lose. Granted seems unfair but they filed bankrupcy and that allowed them to re-write the agreement. He also stated it is a private business and a "franchise" is a long way from that. I have recently went through a franchise that I own go through corporate bankrupcy and my agreement has changed and I have nothing to say to change it unless I just give it up for 0.00$ YES I am mad about it but who can I blame?? myself, I should of invested in a different brand or done more research and not agreed to all of it. I had a choice and so did this guy.

HE didnt gamble and lose...it was taken by the governments idea of running a business...

Name 1 SUCCESFULL Government run entity/program.....good luck with all that-BJ

 

[BIG JOHN]

I feel no pain for the fat cat in the office.. I was thinking more like, what are the people working to actually make things happen going to do?? Technicians, salesman, finance guys, secretaries, and even the carwash kid are all losing their jobs, pretty sure some of them have to have families to think about as well.. forget bailing out the dudes wallet, what about the white collar workers losing their lively hood?? Not trying to argue it just sucks having a family to think of and losing your job.. what did he say 50+ employees??? pretty crappy deal on that end of things if you ask me

So the 50 employees would have had there jobs without said fat cat??

JUST who do you think EMPLOY people???

SOME people are just plain clueless...BJ

 

[B C]

I feel no pain for the fat cat in the office.. I was thinking more like, what are the people working to actually make things happen going to do??

They will have to look for new avenues of income to support their families. Just like the "fat cat". But, they won't have a business debt looming over their heads. Nor did they have the government and a mismanaged corporation yank the ability to repay these debts right out from under them.

You might want to remember there is one very important thing that this "fat cat" does to "make things happen"... He signs the paychecks for those 50 people, and makes sure they can cash them every week. I could fill pages with things these "fat cats" do, that you have no clue about. Fortunately for you, I've tried to nail Jello to a tree; and it just doesn't work. So I'll just sign it...

Sincerely,

Fat Cat

 

[triple]

I work for a fat cat. One of the fattest I've ever seen. My cheques clear the bank, I have medical coverage, a pension, a really nice car to drive, a real nice house to live in, my kids eat everyday, I have sleds, a boat, a fifth wheel, some investments, some shares in a commercial development and some money in the bank.

The fat cat has a huge house, numerous cars, countless businesses, goes on trips that I could only imagine, wears the nicest clothes that money can buy, eats at fancy restaurants just about every night and makes sure that a bunch of us have the stuff that's listed above.

My fat cat is the nicest guy you'll ever run into. In spite of being a very very successful businessman, he knows that the people he pays got him to where he is today. If this Dodge dealer had 50 employees, don't think for one second that he didn't give a krap about the fact that his employees are in trouble. THis guy understands the value of his employees. I hope they find another line to buy and continue success. This Chrysler bankruptcy is making it extra hard on all of the dealership employees.

 

[bigbird]

I feel no pain for the fat cat in the office.. I was thinking more like, what are the people working to actually make things happen going to do?? Technicians, salesman, finance guys, secretaries, and even the carwash kid are all losing their jobs, pretty sure some of them have to have families to think about as well.. forget bailing out the dudes wallet, what about the white collar workers losing their lively hood?? Not trying to argue it just sucks having a family to think of and losing your job.. what did he say 50+ employees??? pretty crappy deal on that end of things if you ask me

One of the dumber statements i've read for awhile. I'd try to explain, but i doubt you would understand.

 

[Gainster]

May 28, 2009
Car Czar and Chrysler dealer terminations
Rosslyn Smith
We know that Caesar's wife is supposed to be above suspicion, but what about a Czar's wife, when it comes to terminating Chrysler's dealers?


From Instapundit:

UPDATE: A reader notes something about “car czar” Steven Rattner: “Rattner is married to Maureen White, the former National Finance Chair for the Democratic Party.” The comment: “So one of the guys advising SecTreas on this thing is married to someone who used to be one of the people in charge of fundraising for the Democratic Party. This explains so much it’s scary.” Well, it bears a close look.