Watchdog: Auto dealers shut down too fast (McCain, unemployment, illegal)
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NEW YORK (CNNMoney.com) -- Automakers GM and Chrysler were pressured to quickly close hundreds of dealerships by the Treasury department without regard for the job losses that would result, according to a government watchdog report out Sunday.
Treasury was charged with helping the car companies out of bankruptcy through the Troubled Asset Relief Program. Together they've received over $80 billion in government funding.
"Treasury made a series of decisions that may have substantially contributed to the accelerated shuttering of thousands of small businesses ... potentially adding tens of thousands of workers to the already lengthy unemployment rolls," said the report, released by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Neil Barofsky.
Interesting this has received no replies...seems the current administration's own policies exacerbated the nation's economic problems...
Who would have thought forcing Chrysler and GM to close dealerships would have lead to the loss of jobs???
It's becoming increasingly hard for those lefties with some semblance of rationality to defend this administration. I appreciate them being silent. It magnifies many times over the mistake that was made in 2008. As the old saying goes, the silence in deafening.
This was posted yesterday. Not alot of left comments either..at the bottom of the page and soon doomed to the 2nd page of posts.
The left doesn't seem to like big business and want the government to control all. Doesn't seem to matter that the government has no business smarts because "profit" never seems to enter the picture.
I saw that the topic was posted earlier after replying,still not a lot of interest from people here....perhaps the talking points haven't been worked out yet?
the worst part was that many of the dealers that were forced to close, were not only successful, but supported mccain in 2008. and since obama and company own those two automakers, along with their union cohorts, you think it might be payback?
Some of the new car lots were too big to start with. I watched one near Plant City, Florida fold not too long after opening. Their free coffee, banners, and balloons couldn't do the trick. Smaller is better. They bit off way more than they could chew, and they were bitten back.
Some of the new car lots were too big to start with. I watched one near Plant City, Florida fold not too long after opening. Their free coffee, banners, and balloons couldn't do the trick. Smaller is better. They bit off way more than they could chew, and they were bitten back.
actually i agree with you, there is no reason that chevrolet should have 6000 dealers in this country, when half that would do nicely. toyota only has 1500 dealers in the country, and they sell just fine.
the biggest problem i have though is that the dealers that were shut down, were forced out of business illegally. unless GM or chrysler actually owned the dealership, they could NOT shut the business down. the only thing they could do is pull the franchise. and unless they bought the inventory back from the dealers, they couldnt take that either.
But it questioned whether the cuts should have been made so quickly, particularly during a recession. The report, released on Sunday, estimated that tens of thousands of jobs were lost as a result.
“It is not at all clear that the greatly accelerated pace of the dealership closings during one of the most severe economic downturns in our nation’s history was either necessary for the sake of the companies’ economic survival or prudent for the sake of the nation’s economic recovery,” the report said.
Tens of thousands of jobs. Obama sure is fast and loose with getting rid of jobs, here and in the Gulf.
He ran roughshod over the creditors/investors, why not the dealerships?
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