Were Chrysler Dealer Closings Political?

[UNTflyer]

One of the arguments against big government and government interference in the economy is government’s unique position to grant political favors to political allies, or to punish one’s political enemies. One of the many reasons Conservatives believe in limited government is to reduce the potential for corruption, political favors, and political punishment from the government.

A story began to unfold yesterday that illustrates this concept perfectly. As part of the bankruptcy proceedings, Chrysler announced the closing of 25% of its dealerships. At the time, Chrysler announced that it was eliminating dealerships based on location, sales volume, and other business factors. Since the announcement, evidence has mounted that highly profitable and successful dealerships were being targeted for closing as well as smaller, less profitable ones. So what is the common link that defines which dealers were closed? Doug Ross did some digging, and found that the dealers being targeted for closing donated to GOP candidates or to Barack Obama’s primary challengers in 2008, while virtually none of them donated to the Obama campaign. Yet a dealership in Arkansas, run by a group with heavy Democrat ties (including President Clinton’s former Chief of Staff), has had all 8 of their dealerships remain open, with much of their competition wiped out by the decision. There is also evidence emerging that the decision to close dealerships did not come from Chrysler Management, but from the President’s auto task force.

The dangers of liberal big government are clear. Even if the closing of dealerships with GOP ties was not intentional or part of a grand scheme, it may have factored in at a subconscious level. Either way, it illustrates the danger of putting government in charge of private industry. The closings will put hundreds of thousands of people out of work, and make no sense from a business standpoint. Chrysler dealerships do not cost Chrysler a penny. They are independent franchises that pay Chrysler money to be a franchise, and then sell their product. Yet under government pressure, Chrysler is seeking to close 700+ private companies, based on no discernible criteria — except that many of them donated heavily to the GOP.

[Green Gas]

One of the arguments against big government and government interference in the economy is government’s unique position to grant political favors to political allies, or to punish one’s political enemies. One of the many reasons Conservatives believe in limited government is to reduce the potential for corruption, political favors, and political punishment from the government.

A story began to unfold yesterday that illustrates this concept perfectly. As part of the bankruptcy proceedings, Chrysler announced the closing of 25% of its dealerships. At the time, Chrysler announced that it was eliminating dealerships based on location, sales volume, and other business factors. Since the announcement, evidence has mounted that highly profitable and successful dealerships were being targeted for closing as well as smaller, less profitable ones. So what is the common link that defines which dealers were closed? Doug Ross did some digging, and found that the dealers being targeted for closing donated to GOP candidates or to Barack Obama’s primary challengers in 2008, while virtually none of them donated to the Obama campaign. Yet a dealership in Arkansas, run by a group with heavy Democrat ties (including President Clinton’s former Chief of Staff), has had all 8 of their dealerships remain open, with much of their competition wiped out by the decision. There is also evidence emerging that the decision to close dealerships did not come from Chrysler Management, but from the President’s auto task force.

The dangers of liberal big government are clear. Even if the closing of dealerships with GOP ties was not intentional or part of a grand scheme, it may have factored in at a subconscious level. Either way, it illustrates the danger of putting government in charge of private industry. The closings will put hundreds of thousands of people out of work, and make no sense from a business standpoint. Chrysler dealerships do not cost Chrysler a penny. They are independent franchises that pay Chrysler money to be a franchise, and then sell their product. Yet under government pressure, Chrysler is seeking to close 700+ private companies, based on no discernible criteria — except that many of them donated heavily to the GOP.

Typical of the liberal party and intentionally overlooked by the media.

I would also like your input to clarify big government in civil affairs verses spending money on the military which I don't consider big government. But the liberals tend to consider it the same.

[UNTflyer]

Typical of the liberal party and intentionally overlooked by the media.

I would also like your input to clarify big government in civil affairs verses spending money on the military which I don't consider big government. But the liberals tend to consider it the same.

I am not opposed to government's involvement in civil affairs, or even partnerships with private business. I don't consider this to be an example. This is government running a business and doing it in a poor fashion.

I think the fact that all but one dealership has been found to be Republican donors, and the fact that the list came from the President's office, is highly suspect, and borderline criminal.

Seriously, I am not a conspiracy theorist, and I like to think my political instinct is to find common ground, but this absolutely REEKS.

[Green Gas]

I am not opposed to government's involvement in civil affairs, or even partnerships with private business. I don't consider this to be an example. This is government running a business and doing it in a poor fashion.

I think the fact that all but one dealership has been found to be Republican donors, and the fact that the list came from the President's office, is highly suspect, and borderline criminal.

Seriously, I am not a conspiracy theorist, and I like to think my political instinct is to find common ground, but this absolutely REEKS.

I agree with your argument this stinks to high heaven.

I am just not a supporter of over regulation, taking state's rights away, crazy new laws, and so forth. I constantly see arguments from the left that compare spending between parties but when spent on the military I see that just as spending not increasing the bureaucracy or big government.

[UNTflyer]

Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Republicans. What started earlier this week as mainly a rumbling on the Right side of the Blogosphere has gathered some steam today with revelations that among the dealers being shut down are a GOP congressman and closing of competitors to a dealership chain partly owned by former Clinton White House chief of staff Mack McLarty.

The basic issue raised here is this: How do we account for the fact millions of dollars were contributed to GOP candidates by Chrysler who are being closed by the government, but only one has been found so far that is being closed that contributed to the Obama campaign in 2008?

Florida Rep. Vern Buchanan learned from a House colleague that his Venice, Florida, dealership is on the hit list. Buchanan also has a Nissan franchise paired with the Chrysler facility in Venice.

"It's an outrage. It's not about me. I'm going to be fine," said Buchanan, the dealership's majority owner. "You're talking over 100,000 jobs. We're supposed to be in the business of creating jobs, not killing jobs," Buchanan told News 10, a local Florida television station.

Buchanan, who succeeded former Rep. Katharine Harris in 2006, reportedly learned of his dealership's termination from Rep.Candace Miller, R-MI. Buchanan owns a total of 23 dealerships in Florida and North Carolina.

Also fueling the controversy is the fact the RLJ-McCarty-Landers chain of Arkansas and Missouri dealerships aren't being closed, but many of their local competitors are being eliminated. Go here for a detailed look at this situation. McClarty is the former Clinton senior aide. The "J" is Robert Johnson, founder of the Black Entertainment Television, a heavy Democratic contributor.

A lawyer representing a group of Chrysler dealers who are on the hit list deposed senior Chrysler executives and later told Reuters that he believes the closings have been forced on the company by the White House.

"It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers. It really wasn't Chrysler's decision. They are under enormous pressure from the President's automotive task force," said attorney Leonard Bellavia.

[FirefightnRick]

Michelle Malkin has it up now, states she mentioned it on Fox yesterday.

Rick

Edited May 29, 2009 by FirefightnRick

[KRAM1]

Folks, folks, folks...listen up now. I will say it again...this administration is all about POWER...nothing fair about anything they do. If they can embolden and pander to their power base (think Sotomayor) they will. If they can "cut-out" opponents, or even precieved opponets, they will. If you think this was just coincidence you are living in a dream world. But then, some folks are living in a dream world and support this administration's move to take the US as left as they can in as short a time as they can before foklks really start waking up to what is actually going on in Washington.

Think POWER GRAB by the left...POWER grab by the left. They care ABSOLUTELY nothing about your health care (or mine), your personal rights, the environment, etc. They care about how they can manipulate these issues to increase their power base.

This should be no surprise to anyone!

But, there is good news...Mean Green Football will kick-off soon!

[meangreenacct]

I know none of you watch Keith Olbermann, and even though I tend to agree with some of what he says, I take things with a grain of salt. He mentioned this on his show last night:

http://www.fivethirtyeight.com/2009/05/new...epublicans.html

If those numbers are true, could it be that the closing appear to be targeting republicans because there just aren't that many car dealers donating to democrats? I can't really say anything in relation to the Arkansas car dealers in Flyer's post as I haven't been able to research it.