June 3, 2009

A curious email - Chrysler dealerships and "Dealergate"

I had written earlier (here and here) about Dealergate. This is the seemingly one-sided approach to which Chrysler dealerships are being closed by the Government. Chrysler themselves are not making this decision, it is the Federal Government (the Car Czar) and out of the 789 Dealerships being closed, only ONE of these dealers contributed to Obama's campaign and that was for a measly $200. Every other dealership that is facing closure donated money to the Republican Party (with some supporting Clinton and Edwards). Yesterday, this missive popped up in my in-box:
Follow up to your post on Chrysler
I represent Leonard Bellavia and wanted to offer this information to you as a follow up to your blog post on Chrysler closings. I hope you pursue it.

After taking the deposition of Chrysler�s President, it �became quite clear to us that Chrysler does not see the wisdom of terminating 25% of its dealers� in the worst auto market in 30 or 40 years said attorney Leonard Bellavia who represents a group of Chrysler dealers who will have their dealerships yanked away from them on Wednesday June 3, 2009 in US Bankruptcy court. Mr. Bellavia went on to say at a press conference on Tuesday May 26, 2009 �It really wasn�t Chrysler�s decision. They�re under enormous pressure from the President�s Automotive Task Force.�

When FOX correspondent Major Garret asked the question of Robert Gibbs at Thursday May 28, 2009 White House Briefing, Mr. Gibbs replied, �Under enormous pressure?� Gibbs went on to say deciding which dealers may or may not be closed �That�s not the job of the President�s auto task force. That�s the job of the individual car company.� Well, it should be in an American Capitalist system. But it�s not. There are 789 dealers who will have their franchise contracts terminated in US Bankruptcy Court as part of Chrysler�s emergence from bankruptcy and its sale to Fiat.

Thinking that the decision to close 25% of Chrysler dealers and put 40,000 Americans out of work during the Great Recession must then be Fiat�s requirement � as part of their purchase of Chrysler � the question was put to them during hearings in US Bankruptcy court last week. When Fiat was asked if they wanted the dealers closed as part of the purchase deal, they said, �whether it [the restructuring] occurs before or after the closing of the deal is not a material difference.�

So, if it�s not Chrysler�s decision to terminate 25% of its dealers now, and it�s not the President�s Auto Task Force decision, and it is not a material difference to Fiat � Then whose agenda is it to PUT 40,000 AMERICANS OUT OF WORK AND FORCE THE CLOSING OF 789 PROFITABLE DEALERS DURING THE GREAT RECESSION?
A very good point. Chicago style politics writ large. 2010 and 2012 will be interesting... And, thinking about the leadership style in Chicago and in New Orleans (from an earlier post today), what is it about certain cities that causes them to develop a sociopathic pathology in their government. And secondly, and more important, why has no one suggested a way to cure this illness -- surely everyone is not on the take there -- there must be an honest politician or three... Posted by DaveH at June 3, 2009 12:11 PM
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