The micromanagement of GM and Chrysler by the government began in earnest today. In front of the Senate Commerce, Science and Transportation Committee the heads of the two auto makers were called to task for their treatment of dealers. From Politico.com here is a sample of the hands off Obama policy: “It’s a nationwide […]
Posts Tagged ‘dealers’
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One More Reason Chapter 11 Is The Right Solution
Posted by Tom Lindmark on December 29th, 2008
Bloomberg has a story about GM and Chrysler grappling with how to trim their dealer network. It has to be done but it isn’t easy as state franchise laws protect the dealers. Restructuring the network of independent retailers is more difficult than negotiating with bondholders or the United Auto Workers union, which can bargain as […]
The Beginning Of The End For Chrysler?
Posted by Tom Lindmark on December 17th, 2008
Make of this what you will. It is either political posturing or the beginning of the end for Chrysler. They announced today that they will shut down their entire production until the 19th of January and also announced steps that materially change their floorplan financing for dealers. The announced production cutback is ostensibly being made […]
