Wednesday, June 3, 2009

Why Shoot the Dealers?

I haven't seen any real answers to this from our state-run auto companies:

Why the need to close so many GM and Chrysler dealerships? The justification by Obama and his cronies running these operations, is that it saves costs. My question is, what costs? I'm sure there is something, but it can't be much. I really have no idea, but here are some guesses:

1. Training mechanics.
2. Printing literature.
3. Freight costs for shipping vehicles and parts.
4. Inspection and conformance monitoring.

Even among these, there may be some things paid for by the dealer directly, and these don't look like big costs in the grand scheme of things anyway.

On the surface, you would think that having more outlets for sales, promotion and service, would be a good thing as long as the facilities were actually independently owned and operated, and not part of the automaker's profit and loss. So maybe there are still "company stores" around that are actually owned by the automakers? Don't know.

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