Chrysler Dealers Battling Closure

According to this report it would appear that Chrysler is interested in cutting the costs of doing business by cutting off those who actually BUY THEIR Cars, but not those who sit home collecting benefits and not producing cars.

Something is definitely out of whack in our society. What has happened to the United States? Why are we constantly punishing achievers and rewarding non-achievers?

clipped from

“Chrysler’s proposed asset sale and request for immediate termination of the dealer franchises will destroy several hundred independent businesses, ruin the livelihoods of their owners, cause the loss of thousands of jobs and precipitate inevitable personal and business bankruptcies,” Stephen Lerner, an attorney at Squire Sanders & Dempsey representing the committee, said in a statement.

Chrysler says it needs a smaller dealer network to be profitable. But the dealers argue they are Chrysler’s main source of revenue, bear much of the risk on car sales, and employ thousands of people.

“Dealers produce revenue, not expense, for Chrysler … it is Chrysler’s dealers that bear the risks and costs associated with selling Chrysler’s cars to the public,” the National Dealer Council argued.

They say closing Chrysler dealerships goes against simple economics because Chrysler dealers buy all of Chrysler’s cars,

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