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Discussion Starter #1
This just seems wrong...with GM and Chrysler treating people like this I cannot see how they will recover.

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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Feel bad for the dealer, looks like we has doing what needed to be done.

Auto industry = bad business decisions for the last 20 years, have they ever made a god decision.
 

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Thats just plain bullshit! As a business owner I feel terrible for this guy. This could basicly happen to any one of us. I wouls sue Chrysler and Obama.
 

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Sadly, it can happen because the dealer agreement that this guy's family signed many years ago said it could.
No, it said the opposite.

Bankruptcy and the judge is what makes this possible.

Oh, and do not lump GM in to this type of treatment.

Although plenty of GM dealers are being shed, they are being given 18 months, vehicles and parts bought back, and other support. Still terrible for them, but not the complete raw deal Chrysler is doing.

Oh, and for this guy, I'd bet his agreement with Chrysler said he couldn't sell Isuzu in the same place, but he chose to anyways. Doesn't make it any better, but most likely he was violating the contract.
 

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Discussion Starter #8
No, it said the opposite.

Bankruptcy and the judge is what makes this possible.

Oh, and do not lump GM in to this type of treatment.

Although plenty of GM dealers are being shed, they are being given 18 months, vehicles and parts bought back, and other support. Still terrible for them, but not the complete raw deal Chrysler is doing.

Oh, and for this guy, I'd bet his agreement with Chrysler said he couldn't sell Isuzu in the same place, but he chose to anyways. Doesn't make it any better, but most likely he was violating the contract.

Good to know GM is at least trying to treat their dealers fairly. I know I'll never buy a Chrysler product. I've owned 30 GM cars over the years 1 Chrysler and one Ford truck. {150K and still running strong BTW}

Looks like I'll be a Ford guy for awhile....I only buy American!

Wonder what will happen to GM quality once the government starts making decisions:|err
 

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Good to know GM is at least trying to treat their dealers fairly. I know I'll never buy a Chrysler product. I've owned 30 GM cars over the years 1 Chrysler and one Ford truck. {150K and still running strong BTW}

Looks like I'll be a Ford guy for awhile....I only buy American!

Wonder what will happen to GM quality once the government starts making decisions:|err
That really sucks. Love my Jeep but Ford only from now on.
 
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Bankruptcy (sp) does strange things even GM has had to put the squeeze on their dealers now

GM will require dealers to sign 'participation agreements' or lose franchises

General Motors is requiring all surviving dealers to sign a “participation agreement” asking them to comply with any dealership upgrades that the company imposes in bankruptcy.</I></B> 6:29 pm U.S. ET | June 1
 

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No, it said the opposite.

Bankruptcy and the judge is what makes this possible.
So I take it that you've read a Chrysler 'Dealer Contract'.... like the one this Chrysler dealer is talking about??


Oh, and do not lump GM in to this type of treatment.

Although plenty of GM dealers are being shed, they are being given 18 months, vehicles and parts bought back, and other support. Still terrible for them, but not the complete raw deal Chrysler is doing.
Have you read a GM dealer agreement?? - the terms of cancellation are crystal clear. You make it seem like 18 months is a tremendous gift, even though some of these guys have been in business with GM of 50 or 60 years.


Oh, and for this guy, I'd bet his agreement with Chrysler said he couldn't sell Isuzu in the same place, but he chose to anyways. Doesn't make it any better, but most likely he was violating the contract.
So now you're saying this guy got canned because he was violating his dealer agreement? I have been involved with two huge 'dealer reduction' programs, although not in the car industry, and I can say for certain that the car manufacturers wrote the book on these agreements - and they're imitated in different industries --- and the dealers have ZERO recourse against them.
 

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Wonder what will happen to GM quality once the government starts making decisions:|err
I wonder what will happen when the US and Canadian governments start replacing their car/truck fleets..... and GM gets under-bid by Ford, Chrysler, Toyota.

The governments are the majority owners of GM and they probably have the largest vehicle fleets in existence - does this mean GM automatically gets the sale??
 

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So I take it that you've read a Chrysler 'Dealer Contract'.... like the one this Chrysler dealer is talking about??




Have you read a GM dealer agreement?? - the terms of cancellation are crystal clear. You make it seem like 18 months is a tremendous gift, even though some of these guys have been in business with GM of 50 or 60 years.




So now you're saying this guy got canned because he was violating his dealer agreement? I have been involved with two huge 'dealer reduction' programs, although not in the car industry, and I can say for certain that the car manufacturers wrote the book on these agreements - and they're imitated in different industries --- and the dealers have ZERO recourse against them.
As with most auto industry info you try to share, you are wrong. State franchise laws are extremely powerful, and are what have protected the dealers for years even if mfg's wanted to get rid of them. I thought this was common knowledge, but appearantly not. Bankruptcy enabled all of this. Do a tiny bit of reading on this, and you'd know.
 

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As with most auto industry info you try to share, you are wrong. State franchise laws are extremely powerful, and are what have protected the dealers for years even if mfg's wanted to get rid of them. I thought this was common knowledge, but appearantly not. Bankruptcy enabled all of this. Do a tiny bit of reading on this, and you'd know.
Laughing out loud at this statement..... apparently you didn't read Just Another Payment's link -

"Automotive News
June 1, 2009 - 6:29 pm ET DETROIT -- General Motors is requiring all surviving dealers to sign a "participation agreement" asking them to comply with any dealership upgrades that the company imposes in bankruptcy.
GM also will require dealers who got franchise termination letters to sign a "wind-down" agreement. That will provide money for them to phase out their business over the next 17 months as their franchises expire.
Surviving and terminated dealers have until mid-June to sign the agreements. If they refuse to sign, GM will yank their franchises, Mark LaNeve, vice president of vehicle sales, service and marketing, said today in an interview with Automotive News.
"They get put into the old company and get a fairly quick termination, like the Chrysler dealers did," LaNeve said. "Their sales and service agreement will be rejected and put into the old company."
LaNeve's explanation dampens speculation that GM might employ bankruptcy to terminate dealers quickly, rather than over the 17-month period. Instead, GM will use the threat of termination to get surviving retailers to accept new store guidelines.

I ask again ... have you been involved at the dealership level and have you seen an agreement??
 

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Laughing out loud at this statement..... apparently you didn't read Just Another Payment's link -

"Automotive News
June 1, 2009 - 6:29 pm ET DETROIT -- General Motors is requiring all surviving dealers to sign a "participation agreement" asking them to comply with any dealership upgrades that the company imposes in bankruptcy.
GM also will require dealers who got franchise termination letters to sign a "wind-down" agreement. That will provide money for them to phase out their business over the next 17 months as their franchises expire.
Surviving and terminated dealers have until mid-June to sign the agreements. If they refuse to sign, GM will yank their franchises, Mark LaNeve, vice president of vehicle sales, service and marketing, said today in an interview with Automotive News.
"They get put into the old company and get a fairly quick termination, like the Chrysler dealers did," LaNeve said. "Their sales and service agreement will be rejected and put into the old company."
LaNeve's explanation dampens speculation that GM might employ bankruptcy to terminate dealers quickly, rather than over the 17-month period. Instead, GM will use the threat of termination to get surviving retailers to accept new store guidelines.

I ask again ... have you been involved at the dealership level and have you seen an agreement??
Let me try this again. IN THE PAST state franchise laws completely protected dealerships. IN THE PRESENT IN BANKRUPTCY things are very different.
 

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Let me try this again. IN THE PAST state franchise laws completely protected dealerships. IN THE PRESENT IN BANKRUPTCY things are very different.
No offense, but thats a sidestep way to say many are going to get xxcked! This whole scenario with GM and Chrysler is absolutely disgusting.
 

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Let me try this again. IN THE PAST state franchise laws completely protected dealerships.
Sorry pal, but I can see you haven't been involved with any kind of dealership..... construction eq./heavy truck/farm eq. or automobile.
 

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All this going on while GM ramps up production in China.

I'll throw them in with Chrysler...and Chrysler sucks.
 
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