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Lithia Motors Inc. Message Board

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  • pmoishe pmoishe Dec 4, 2008 5:17 PM Flag

    Lithia Dealerships GM F C

    Part of any bailout will be legislation voiding the states franchise control over car dealerships. This will pave the way for getting rid of the dealerships. The buyouts will be much cheaper than for Olds.

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    • I will be more than surprised if they are able to pull that one off for a couple of reasons. One is that it would never hold up in court, and the other is that the national and state dealer associations have great lobbyists.

      In addition, it would be a PR nightmare as the "big, bad, massive corporations" would be squashing out family run small business.

      They will be able to reduce the dealer base by simple attrition. That won't cost them a dime.

      • 1 Reply to honda4everrrr
      • Actually, it is clearly legal. Read the Commerce Clause of the Constitution. No way Congress will give them billions only to see it wiped out by paying off the dealers to shut down like Olds, which cost GM over $1 billion. Bottom line: Saturn and Pontiac are toast. Hummer, GMC and Buick should all be gone as well. GM can only justify, given its market share, Chevy and Cadillac. Net result for the dealership groups: short-term hit, long-term benefit (assuming they can survive this recession).

 
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