Chrysler gets more time

Sorry if I’m arriving late to this party, but I’m just now starting to put together all the pieces of the GM and Chrysler automotive situations.  Apparently President Obama is giving the companies some time to restructure their businesses before any additional federal money is shoveled their way.

Shortly after this, both companies announced closings of many dealerships all over the country.  Chrysler plans to close 789 dealerships–25 percent of its total.  Fifty of those dealerships are in Texas. Chrysler has agreements with these dealerships, but asked a court in New York to disregard those agreements since the company is filing for Chapter 11 bankruptcy.

Sen. Hutchison introduced legislation that would give Chrysler dealerships more time to find other distributors through which to sell their cars, trucks and vans.  The legislation gives dealers 60 additional days to close operations and sell their remaining inventory.

According to the AutoBlog, Chrysler appears to be abiding by all government recommendations:

After the suggestion of Congressional hearings on the matter, Chrysler’s Jim Press assured Senator Kay Bailey Hutchison (R-TX) that Chrysler dealers with leftover inventory after June 9 would “receive a fair and equitable value.” It appears that Chrysler is making good on that promise.

Of their 42,000 cars held by dealers, 26,000 have already been sold.  The rest will be moved to dealerships that have not closed.  So as commenter “9600baud” points out, that ruins your chances of getting a good deal on one of those things.  Indeed.  But when the auto industry is bleeding from about 50 different wounds right now, I don’t mind.

What is somewhat alarming are the different ways GM and Chrysler were treated (GM had to fire its CEO, Chrysler had to pair up with foreign company Fiat), and the possible decision behind which dealerships should close and which could stay in business.  You can read Obama’s remarks about GM and Chrysler from March here.

But better yet, check out this post at Gateway Pundit.  The author asks if it’s a coincidence that the 789 closed dealerships gave $450,000 to GOP presidential candidates and $450 to Obama (yes, that number is correct:  4-5-0).  By a ratio of 42 to 1, these dealers gave to the GOP instead of Democratic candidates in 2008.  Facts like these just keep on coming from this Gateway Pundit post, and they’re really alarming.

If nothing else, you should check out this map that cross lists Chrysler dealerships and how counties voted in the 2008 presidential election.  Not too many black dots in blue counties, eh?

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