Archive for May 15th, 2009
May 15th, 2009
By eliminating dealerships, the Obama Auto Task Force seems to think this will restore higher prices for autos. What a way for the foreign cars to make further market share improvements in the US! GM
With Chrysler on a 30-60 shutdown and GM announcing a 60 summer shutdown, think about what happens to the manufacturing sector of the economy and the local economy as well.
Maybe we should put tariffs on imports to raise prices that will allow US produced products to become more competitive so we can sell more?
Kind of artificial, huh?
May 15th, 2009
WASHINGTON – U.S. Rep. Don Manzullo (R-IL) sent a letter to President Obama today
urging his auto task force to reconsider its forced closure of 1,889 GM and Chrysler
dealerships in America and instead focus on policies that will re-start
manufacturing and put Americans back to work.
With 150,000 dealership employees scheduled to lose their jobs due to the closures,
Manzullo said the President’s auto task force is misguided in its belief that auto
dealerships are dragging down GM and Chrysler. In fact, 90 percent of the
automakers’ revenue comes from the dealers purchasing their cars. Manzullo noted
that none of the members of the auto task force has ever worked in the auto
industry.
“Automobile dealers are one of the largest private sector employers in Illinois,
providing more than 43,000 jobs and contributing hundreds of millions of dollars of
tax revenue for state and local governments. Each dealership creates an average of
52 neighborhood jobs and these positions typically pay twice the national average as
other retail-sector jobs,” Manzullo stated in the letter to the President. “At a
time when the national unemployment rate is 8.9 percent – and the unemployment rate
in Rockford, IL is more than 13 percent – it is unconscionable for the government to
create more job losses for no discernable gains.”
Instead, the Administration and Congress should be working on legislation to
re-start auto manufacturing and auto sales. Manzullo introduced legislation earlier
this year to give Americans a $5,000 voucher to purchase a new vehicle, stimulating
auto sales and manufacturing, re-starting the supply chains, and putting millions of
Americans back to work. The New Automobile Voucher Act of 2009 (HR 1606) would
provide a one-time, $5,000 electronic voucher from the U.S. Treasury at the point of
sale of a new vehicle through the end of 2009.
The automobile industry and its suppliers account for 13 million American jobs, 20
percent of all U.S. retail sales, and billions of dollars in state and local sales
taxes. The drop in U.S. vehicle sales from 16 million in 2007 to 13 million in 2008
to a projected 8 million in 2009 has been one of the leading causes of America’s
economic downturn and huge job losses.
“My bill will give Americans the incentives and the confidence they need to start
buying vehicles again, which will bolster automobile manufacturing and sales, put
millions of Americans back to work, and restore the tax revenues our state and
local government need to continue providing services to the people.”
May 15th, 2009
In case you missed this article about the Cap & Trade legislation that will be harmful for manufacturers, here’s a good one by Chuck Sweeny… Cap&Trade
May 15th, 2009
Is this what the first trade war of the global economic crisis looks like? Wars
May 15th, 2009
I’m sure I don’t know all the answers, but the announcement of Chrysler reducing the number of dealers selling their cars makes me wonder, why?
In today’s world of multiple distribution, I can’t see that reducing the number in the Rock River Valley is a good reason. The more “feet on the street” the better. Think of all the same consumer products that you can buy at multiple locations.
I don’t know what cost Chryler pays to keep a distributor. Does each of the three locally that got terminated cost Chryler money to maintain?
What about customer loyalty to say Belvidere Motors. He got cut out, what about his customers? Will they go to Ford or GM or to a foreign dealer instead of finding another Chrysler dealer?
I don’t understand why they fired Bachrodt since they were only selling Jeep, a non-competitive offering to the other car lineup in their showroom.
Could it be the strategy that addresses the coming of Fiat cars into their dealer network that could cause a conflict?
