Thursday, May 28, 2009

Were Chrysler dealer closings politically motivated?

There is much speculation of impropriety about the way in which Chrysler and the government chose which dealers would be closed and which would remain open. What did they use as a basis for their decision?

For me, the obvious way to close down dealerships would be to get rid of the dealers that were not performing well and not making money. Then, I would look to consolidate dealerships in the same market. If more dealerships needed to be closed, then maybe you would decide by sales volume. there are many business-savvy ways to do this.

However, many bloggers are looking a little deeper into this to see if there was any political payback involved. Were dealers that made contributions to Democrats rewarded? Were dealers that made contributions to Republicans punished?

We should withhold judgment until the facts are out. However, given this administration's penchant for political bullying, I must say I would not be surprised if there was politics involved. This could possibly be a case study in Chicago-style, thug politics. We will have to wait and see how this transpires. But please, do not expect the mainstream media (which is the spokesgroup for the Administration) to do any vigorous research into this. They want it to pass quietly.

But let us remember what happened after President Bush fired a few of the U.S. Attorneys a couple years back. Everyone was outraged that this was a politically motivated act. In fact, there are still hearings going on about this (Karl Rove had a meeting concerning this issue last week). Why was this issue of firing U.S. Attorneys such a big deal, but the possibility of the Administration closing hundreds of dealerships based on politics OK?

The U.S. Attorneys serve serve at the pleasure of the President. It is his prerogative to keep them or let them go. There was nothing illegal, immoral, or unethical about what happened to this small group of attorneys.

However, if the Administration is using politics as their basis for closing dealerships, then there is a tremendous problem. What it says is that you need to support us or we will put you out of business. In other words, "You need to pay in order to play" (just like the Illinois Senate seat that Rolland Burris sits in right now). These dealerships are not open for the pleasure of the President. These dealerships are open to serve the public. When the government starts to get involved and decide which businesses stay in business based on politics, then we have reached an awfully slippery slope. Where does it end?

What would have happened if President Bush tried something like this with any given industry? He would have been crucified for it, and rightfully so. Why, then, do we have a double standard when it comes to President Obama?

Now, there are going to be several hundreds of dealerships going out of business. many may stay open and continue selling used cars or remain in the auto repair business. But this is still going to lead to unemployment, affecting potentially thousands of people and families. This is sure to help the economy get better.

But don't worry. The President nominated someone to the Supreme Court who will have empathy for you..

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