Auto Dealerships Teeter as Big Three Decline

[Shirley Schmidt]

Some dealers in Wichita are down 50% and more for the year.


Which will be the first one to go under?

Rusty Eck?

Mel Hambelton?

Davis - Moore?

Scholfield?

Steven?

Parks?

Hattan?

http://www.nytimes.com/2008/11/30/business/30dealer.html?_r=1&th&emc=th

[rrshock]

Parks will probably be the last to go. I could see the dealerships with multiple shops closing up one or two of them, but not the whole operation.

[BenWSU]

Cars would be cheaper if the unions werent getting $72 an hour per employee.

[SubGod22]

Cars would be cheaper if the unions werent getting $72 an hour per employee.

And the big 3 wouldn't be in such trouble.

[rrshock]

That's why they should be forced into chapter 11, instead of bailing them out.

[SubGod22]

I completely agree!

[kcshocker11]

Cars would be cheaper if the unions werent getting $72 an hour per employee.

:roll: 8)

[rjl]

While I agree that some of the union contracts at the "Big 3" are out of control, blaming them for the current mess is like blaming the barnacles for the ship running aground.

I'd first point my finger at... oh, I dunno... the Big 3 not making hardly any vehicles that people actually want to buy.

And who knows, maybe declaring bankruptcy will allow them to get out of some of those contracts?

[kcshocker11]

While I agree that some of the union contracts at the "Big 3" are out of control, blaming them for the current mess is like blaming the barnacles for the ship running aground.

I'd first point my finger at... oh, I dunno... the Big 3 not making hardly any vehicles that people actually want to buy.

And who knows, maybe declaring bankruptcy will allow them to get out of some of those contracts?

:yes: 8)

[rrshock]

While I agree that some of the union contracts at the "Big 3" are out of control, blaming them for the current mess is like blaming the barnacles for the ship running aground.

I'd first point my finger at... oh, I dunno... the Big 3 not making hardly any vehicles that people actually want to buy.

And who knows, maybe declaring bankruptcy will allow them to get out of some of those contracts?

That is what I heard on the news. If they declare bankruptcy, it will allow them to terminte all their contracts and renegotiate.

[Shirley Schmidt]

GM said this morning that the dealer network now totals about 6,800. In a few years it will be down to 4,800.

SAAB and Hummer are on the auction block and it sounds like Saturn may be gone.

The local Satrun owner has a 10K a month alimony payment he may be in trouble.

[rrshock]

GM said this morning that the dealer network now totals about 6,800. In a few years it will be down to 4,800.

SAAB and Hummer are on the auction block and it sounds like Saturn may be gone.

The local Satrun owner has a 10K a month alimony payment he may be in trouble.

Why would GM get rid of their best selling line of cars? Saturns have been their most popular for a couple of years now. They're cheaper, get better gas mileage. They should dump Pontiac and either the GMC or Chevy line, because those two are identical anyways.

[ShockerGorilla]

They get paid the BIG bucks to make those decisions. That's why they are all tanking right now--high salaries & poor decision-making .

[RoyalShock]

I was watching Leno last night. He had Brian Williams on and they were discussing the potential auto bailout. Williams was of course for it because of all the jobs that would be lost, not just at GM but all their suppliers.

So, let me get this straight. If GM goes under, the demand for cars will go down proportionally?

I am sometimes astounded at how little depth these guys go in their thinking.

[rjl]

On NPR the other morning, they said that GM is going to try to really streamline their product offering, which is something they are notorious for overinflating.

Making Pontiac a specialty brand was one idea. Possibly selling Saturn and Hummer, the latter of which would be a wise, wise move.

Thing is, nowhere in the discussion did GM ever say that they'd discontinue the GMC line. Are you kidding??? Why carry two lines of trucks (Chevy and GMC) which are essentially the exact same thing, especially in market conditions that are becoming increasingly unfavorable to trucks and SUV's?

Something tells me that they still just don't get it.