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Old 07-19-2010, 09:33 PM   #18
shmike
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You're grasping at straws, Paul.

The "explainer" claiming that cutting a few training jobs and dealer reps is going to save enough money to salvage the auto manufacturers is laughable.

Intrabrand competition may bring profit margins down but the loser in that deal is the dealership.

Dealer A may sell for cost + $500 while Dealer B will sell for cost + $100. Cost is constant, GM/Chrysler still get their price.

The best argument the explainer has is the loss of capital from failed dealerships. Unfortunately, that deals in the purely hypothetical and speculative world. It also deals almost exclusively with start up dealers.

If GMAC had called their loans due, few would have complained. If there had been a moratorium of new dealers, people would have applauded.
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