Furor grows over partisan closing of car dealerships

 The closings of the dealerships were determined by the manufacturers based on sales performance, brand market penetration, MMA census, facilities, capitalization, customer satisfaction ratings and a number of other factors.  Despite the fact that the Messiah pressured GM into canning its CEO, rumors such as those this op/ed promotes are absurd.  Obama has zero business experience and is at least smart enough to realize that any attempts on his part to influence dealer closings based on partisan politics would result in calls for his impeachment.

Not only is the suggestion that Obama and the car czar are trying to oust only Republican dealerships rediculous, if you read this article carefully, EVEN THE ARTICLE refutes that claim.  It is outrageous that business owners are being forced out of their livelyhoods (Fact), but it's more outrageous to add insult to injury by making rediculous claims about an already difficult situation.

I expect that there will be at least some adjustments of exactly which dealerships close due to the intervention of the legal system.  (Horror stories have already started to surface).  Unfortunately, no matter how devistating the circumstance, there probably ARE too many dealerships (of all types) in some markets.  Perhaps many of them SHOULD be closed.  I have a problem with businesses being FORCED to close.  The free market economy should address this issue.  

What is disturbing to me is that these dealerships licenses are bought and paid for by an owner of the dealerships. They are not cheap. I just don't see how any of the car companies or the government can be allowed to shut a private business down? I agree, let free choice make em or break them.

You are exactly right and I don't understand it either.  But this is something else to consider.  It is my understanding that the companies (GM, Chrysler) are not technically shutting the dealerships down.  What they are doing is refusing to sell them cars.  Although it boils down to the same thing, it is probably a legal distinction that will hold up in court.

One other thing that bothers me is that often, the corporation requests the dealer to do things that increases the owner's cash outlay.  Then if the dealership is forced to close, that dealer's losses are even greater.  According to the news, either Palmer or Gene Beltz in Indy was requested by Chrysler to by a foreign car dealership that was nearby (I think it was a toyota dealership).  Now they are being closed down after expending large amounts of cash at the request of Chrysler.  That is one of the cases that may be contested in court.