Great so we have bailed out General Motors and Chrysler, or we (the tax payers) gave them 10s of Billions of Dollars so they could file for bankruptcy.
Well, this was supposed to help them re-align with reality and save these great American icon businesses, and yet now we see them cutting their dealer network by 40% or more.
NADA North American Dealer Association told a Congressional Hearing of the amount of sales tax revenue that these dealerships bring into all the local communities and how many jobs that an average dealership provides.
Those numbers are huge and right now States and municipalities really need these sales tax revenues for basic services.
The Washington Post stated that General Motors will cut over 2600 dealerships and Chrysler some 800-1000 dealerships.
The Wall Street Journal had an in depth article about how many plants were shutting down.
Reuters had an interesting article on the GMAC fiasco, remember they do car loans, business loans, credit cards and real estate; ouch! Certainly none of those are good industries right now.
So, if there is no one to build the cars, no one to finance the cars, and no dealerships to sell all the cars, then why on Earth did the taxpayer's become owners of these companies? Government has no business being in business, as it cannot even keep track of its own bureaucracy.
The blob is out of control and our Auto Industry has driven off the proverbial cliff.
What on Earth are all these dealerships going to do now? There is only one way for them to save themselves, and that is to start selling mini-cars from Tata Motors or Chinese SmartCar "knock-offs" otherwise we have more empty commercial real-estate, more bank losses and no created jobs for all those car dealership employees to go too.
Thanks a lot Obama?