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May 28, 2009

Chicago Politics Hits the Auto Industry

Now that Chrysler has been absorbed by the federal blob, this is to be expected:

As part of its Chapter 11 bankruptcy, Chrysler is terminating one-fourth of its franchises — but some say its catalog of doomed dealerships looks more like a hit list that specifically seeks to put Republican donors out of business.
…WND reviewed the list of 789 closing franchises and databases of political donors and found that of dealership majority owners making contributions in the November 2008 election, less than 10 percent gifted to Democrats while 90 percent gave substantial sums to Republican candidates.
The listed franchise owners contributed at least $450,000 to Republican presidential candidates and the GOP, while only $7,970 was donated to Sen. Hillary Clinton's campaign and $2,200 was given to Sen. John Edwards' campaign.
Obama received a combined total of only $450 in donations — $250 from dealer Jane Baldock in Wenatchee, Wash., and $200 from Waco, Texas, dealer Jeffrey Hunter.

Apparently, the Anointed One considers $450 donations an insult.

Vernon Buchanan's Chrysler dealership in Venice, Florida has been tremendously successful, consistently selling over twice the average stock. But he's a GOP Congressman, and has given almost $150,000 to Republican candidates and organizations in the last two years. Consequently, his dealership was the first on the list of facilities marked for termination by June 9.

"Change" means living in a cross between Chicago and Venezuela.

On a tip from Lyle.

Posted by Van Helsing at May 28, 2009 8:01 AM

Comments

I agree with the idea that being small business men the majority of car dealership owners contribute to Republicans rather than Democrats. The only way to make this story bullet proof is to also study the contributions of the "safe" dealerships to see what ratio donate to the Dems.

Please note that I do not disagree with the point of the artical, I am merely pointing out a way to make the indictment of His "O"lliness easier.

Posted by: JustAl at May 28, 2009 8:21 AM

Of course this information should be a scandal and on 24 hour spin cycle in the media. But somehow I doubt it will even be mentioned on any network other than maybe Fox News.

America died January 20, 2009. R.I.P. America

Posted by: Anonymous at May 28, 2009 8:22 AM

This whole story just reeks, and the media has just been pathetic - even by their standards.

Here are a couple questions that need to be asked:

How does forcing the closure of franchised dealerships help the parent company? I sincerely don't know the answer to this, and would like an explanation. If the dealers are making money why force them closed? Even dealerships that have been losing money lately, why close them? If they can absorb some losses during a tough time, and maybe make a comeback, why not let them do it? Isn't this loss on the shoulders of the franchisee during sales slumps, or does the franchiser have an obligation to subsidize them? This is a simple and obvious question that need to be asked and answered.

What was the exact process in selecting franchises to be terminated? If it wasn't how they affected profitability or lack thereof of the parent company, they have a hell of alot of explaining to do.

Why does Obama label investors in car manufactures "speculators", and why would they be asked to take huge loss while other parties gobble up the company? Investing in manufacturing seems very unspeculatorish to me. He needs to be asked and pressed for specifics.

Has anybody been asking good questions and geting any answers from the Administration? WSJ maybe Anybody?

Posted by: forest at May 28, 2009 8:30 AM

Yes, data on the dealerships remaining open should also be compiled. But the stats on the closed dealerships are heavily skewed against Republican contributors and warrant further investigation. Another measure would be to find out how profitable the closed dealerships were vs. the ones that remain open.

Its possible unprofitable dealerships, run by mostly Democrats, remaining open will end up with higher sales - resulting in increased contributions to the Democratic Party - and those making the decision figured no one would notice.

The hard part will be getting the profitability data. If the fix is in and the government/unions control the company - odds are that data wont see the light of day.

Posted by: Name at May 28, 2009 8:32 AM

Jumping the gun on a story like this is bad news.

It's certainly conceivable, but far from confirmed.

Posted by: cowlove at May 28, 2009 8:48 AM

Somebody on the cars.com site said that car dealers overall made 88% of their contributions to Republicans. They supplied no source.

http://blogs.cars.com/kickingtires/2009/05/789-chrysler-dealers-to-close-by-june-9.html#comment-6a00d83451b3c669e201156f9225fd970c

There is another bit of data that would be needed. What percentage of close/remaining open dealers contributed nothing to political campaigns? Its not just Democrats vs. Republicans. If non contributors with lower sales survived at a higher rate - it might be message to dealers that if you contribute to Republicans you might not be around much longer.

Both GM and Chrysler should just publish a complete list of dealers (open and closed) with total sales figures and number/type of vehicles sold. That would resolve the matter one way or another.

Posted by: Anonymous at May 28, 2009 8:55 AM

Apparently the 88% number was arrived at by someone simply searching by Occupation Auto Dealer and Car Dealer and does not break out data removing Non US car dealers or Ford. It also doesnt include data for dealers that contributed nothing.

Posted by: Name at May 28, 2009 9:01 AM

Posted by: Gregory of Yardale at May 28, 2009 9:30 AM

Obama thinks he's Tony Soprano now- strong-arming legitimate, legal rights and claims from hedge funds... mafia-style, including union death-threats... so he could hand 55% of Chrysler over to the UAW, who donated $5M to his campaign.

If that's not stealing, I don't know what is... it doesn't matter how much you dislike hedge funds.

Now he's destroying the evil capitalists that didn't support his fraudulent, disingenous campaign?

With the way he operated in Chicago, all those old skeletons in his closet, and now with attack campaigns on media figures and a corrupt cabinet, it's only a matter of time before Obamamania goes *pooof* The press can't cover up forever-

The White House says there’s “no evidence”- note that Hitler was careful to only give verbal orders, too... and Obama's not new to this sort of thing.

Obama's completely out-of-control. But what did anyone expect with a neutered press, compliant congress, and cabinet full of sycophants?

http://reaganiterepublicanresistance.blogspot.com

Posted by: Reaganite Republican Resistance at May 28, 2009 11:43 AM

One of the reasons CHICAGO is called the WINDY CITY is becuase its run by a whole bunch of demacratic liberal windbags LIKE ITS MORON MAYOR richard dailey

Posted by: SPURWING PLOVER at May 28, 2009 11:52 AM