Post by graybeard on May 21, 2009 23:10:53 GMT -6
From a Canadian acquaintance:
"The other day it was announced that about 1100 GM dealers in the US (as well as 240 in Canada) were being given notice. I have thought about this and it makes no sense to me."
"I will accept that there is likely more GM dealers than the market can support right now. But if the decision as to who will be the winners and losers is being made by the same rocket scientists that got GM into the crap they are in now, then I would really question the likely intelligence that has made these decisions."
"It would seem to me that the market place will determine which are the well run ones who deserve to survive and who should perish. And if the decision was made by government then I would question the wisdom even more. Maybe someone can point out my errors to me as I am at a loss to understand."
Good questions. Same goes for Chrysler. How are dealers an expense to the makers? They buy cars from the factory or take them on consignment, and re-sell them. I've heard in the past of the factories pushing more and more cars onto the dealers, to the point of strangling them, however.
Hmm, maybe it's about shedding warranty costs? If the car owner has to go too far to find a dealer, maybe he won't bother with a lot of warranty items..
All economics is demand driven: nothing happens until the consumer buys something. If we don't buy new cars, dealers won't sell them, and GM won't make more of them. The old BS of Supply Side and Trickle Down economics we've been hearing the last 30 years is just robbing the middle to enrich the rich.
GB
"The other day it was announced that about 1100 GM dealers in the US (as well as 240 in Canada) were being given notice. I have thought about this and it makes no sense to me."
"I will accept that there is likely more GM dealers than the market can support right now. But if the decision as to who will be the winners and losers is being made by the same rocket scientists that got GM into the crap they are in now, then I would really question the likely intelligence that has made these decisions."
"It would seem to me that the market place will determine which are the well run ones who deserve to survive and who should perish. And if the decision was made by government then I would question the wisdom even more. Maybe someone can point out my errors to me as I am at a loss to understand."
Good questions. Same goes for Chrysler. How are dealers an expense to the makers? They buy cars from the factory or take them on consignment, and re-sell them. I've heard in the past of the factories pushing more and more cars onto the dealers, to the point of strangling them, however.
Hmm, maybe it's about shedding warranty costs? If the car owner has to go too far to find a dealer, maybe he won't bother with a lot of warranty items..
All economics is demand driven: nothing happens until the consumer buys something. If we don't buy new cars, dealers won't sell them, and GM won't make more of them. The old BS of Supply Side and Trickle Down economics we've been hearing the last 30 years is just robbing the middle to enrich the rich.
GB