George Spaulding writes:
What is behind this dealer-cutting, job-cutting strategy? An Associated Press report said, “While GM doesn’t own the dealers, the company says its network is too big, causing dealers to compete with each other and giving shoppers too much leverage to talk down prices and hurt future sales.”
Pardon me! Dealers are forced to compete? I thought this was the free enterprise society. More importantly, how does this philosophy affect you?
According to that AP dispatch, the key purpose in all of this is so that you, the buyer, will lose your negotiating advantage. By forcing potential buyers to travel more, the opportunity to “shop around” is reduced and purchasers will pay more. It’s clear: thousands of customers are being forced to change their buying habits and, once again, the customer pays.
Have you seen the letter written by the owner of Sunshine Dodge-Isuzu circulating around the intertubes lately? Spaulding has the answer to that as well:
My impression is that a few large GM dealers have convinced the Government Motors Board to get rid of competing small dealers so that the big city guys can be more profitable.
In other words, the Obama regime is making it even harder for the poor to afford the very pieces of trash they already bought several times over with the illegal auto bailouts.