Bailout Watch 427: NADA to Obama's Mob: "Dealerships Are Not a Part of the Problem"

Robert Farago
by Robert Farago

CAUTION! PROFANITY AHEAD! Automotive News [sub] reports that the National Automobile Dealers Association (NADA) is telling the world what it’s going to tell The Presidential Task Force on Automobiles on Friday: don’t blame US for this shit. It’s essentially the same message NADA gave Congress back when GM and Chrysler first proffered their $19.4B begging bowl: don’t fuck with us. Let the market decide how many goddamned dealers Detroit can afford (even though US tax money is propping-up their dead man walking metal makers). At the same time, NADA plans to ask the Task Force a simple question: where’s OUR goddamned bailout? “NADA leaders also plan to urge government policies that would ease credit for vehicle inventory financing at dealerships. A lack of floorplan financing and unreasonable terms by lenders are forcing dealerships to curtail orders from automakers and in some cases shut down, NADA contends.” You know, this has the makings of a pretty good operatic score, in both senses of the word . . .

The American International Automobile Dealers Association, which represents import-brand dealers, has not sought a meeting with the task force but will send representatives if asked, AIADA President Cody Lusk said today.

Aida? Cody Lusk? See what I mean? Meanwhile, if you want to understand just how tragi-comic Bailout Nation has become, check out this paragraph at the end of the article:

Separately, auto suppliers warn that unless they get as much $18.5 billion in federal aid, shutdowns soon will stop the flow of parts to U.S. plants.

Not even a headline.

Robert Farago
Robert Farago

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  • Sherman Lin Sherman Lin on Mar 04, 2009

    bridge2far I don't know what will or won't happen in the future but if you have been coming to this site for a while you will know that there have been quite a few people that would regularly chastise this site and RF with comments about GM never going under (usuually by employees of GM). I don't see those kind of posts now. Dpepers, who says it has to be a factory store I don't buy samsung LCDs or frito lay potato chips from the Samsung store or the frito lay store. I buy them from a retailer. But I don't have to buy them from the samsung franchise or frito lay franchise as mandated by law. As for dealerhaters it comes from how dealers treat people and the basic fact is they treat customers like crap because thet make more money that way. I am treated better by minimum wage know nothings. I have never been cursed out at Best Buy or called names and demeaned at Sears walmart etc. I have had all those experiences and more at car dealers and only at car dealers.

  • Mud Mud on Mar 04, 2009

    One of the few bright spots in these times is the thought of a complete overhaul of dealerships. Archaic method of selling, abysmal customer relationships, astronomical creativity in cheating. I'm keeping one more A-word in reserve as to what I think of them.

  • David Thomas David Thomas on Mar 04, 2009

    dpeppers, Carmax has started to sell new cars at a few test locations. To me that's similar to a Best Buy for cars, like your HDTV reference. Apple prices were high before their first store opened. Different argument there. Scion, Mini and Smart prove you can go the direct purchase route with no negotiating and be successful. The problem with Saturn is no one wants to buy one. Put that model to work at chevy dealers with the red ticket type pricing, price on the ticket is what you pay, guarantee a time limit to process paper work etc. They'd be hugely successful. I've gotten paperwork filled out and out the door in a washed new car in under an hour. I've heard stories where it takes people 3.

  • Dpeppers Dpeppers on Mar 05, 2009

    Carmax = Corporate Owners. Not factory. Autonation, Sonic Automotive Group are other "individual" corporations that own dealerships (and are probably the reason for alot of ire in customers). Your "Best Buys" point is already done. It's still not the manufacturer of the product, because they are unwilling to have the expense of owning brick and motar. Hence the 38000 dollar civic. David you run a car buying advice blog? Are you promoting Carmax? Do they advertise on your blog? If you haven't check lately Scion is getting stale..... Buy the way it only takes 1 hour at my store. The only reason for a delay would be if your credit challenged. Scion dealers are individuals mainly (or corporate like AutoNation), same for Mini. Your not buying directly from the "factory and that is what I was discussing.

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