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Sunday, June 07, 2009
Steve Chapman :: Townhall.com Columnist
If Congress Ran a Car Company
by Steve Chapman
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It should come as no surprise that as these corporations find fewer and fewer buyers for their products, they need fewer car lots. Today, Chrysler sells about half as many vehicles in this country as Toyota, but it has more than twice as many dealers.

Does Rockefeller get complaints from Toyota owners about the grueling trips to get service? Chrysler, by the way, admits that the average customer's drive to the dealer will increase -- from 6.67 miles to 7.09 miles.

But once senators get the chance to micromanage business decisions, they are reluctant to pass it up. Sen. Kay Bailey Hutchison, R-Texas, proved that meddlesome government is not a Democratic monopoly. She proposed that Chrysler be forced to give its dealers 60 days to unwind their operations instead of less than a month, as the company decided.

Hutchison fondly recalled that when she was selling ads for the high school football program in her teen years, a car dealer provided the school's first sale. Retailers should be accommodated, she insists, because they have "nothing to do with the cost of the company."

But CEO Fritz Henderson, whose job, unlike hers, actually depends on knowledge of his company's cost structure, said the support GM provides to dealers amounts to about $1,000 per vehicle -- a figure that would be lower with a downsized network. Cost aside, the companies say an excess of dealers means some can't make enough money to serve customers well, damaging their brands.

While lamenting the fate of the unfortunate dealerships that will be dropped, the senators overlooked another group that will be deeply affected by the closures -- the remaining dealers. They can expect to capture more sales, boost their profits and even provide new jobs in sales and service.

One Detroit-area Chrysler dealer told a local newspaper that he plans to add at least 30 employees to his staff of 85. When that happens, don't expect a Senate hearing for them to express their gratitude.

Now that Washington has intervened to rescue these corporations, it can easily justify reviewing and even reversing their business decisions. But, as the senators proved, having the excuse is not the same as having the competence.

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About The Author
Steve Chapman is a columnist and editorial writer for the Chicago Tribune.
 
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Kudos to h20skier and Fantasy Control
I read this entire thread and was particularly interested in First's comments.. I then read h20skier in reply #57 and Fantasy Control in reply #59 and they have debunked and demolished the false notions being pandered by First. If only First would open his/her mind (which is extremely difficult for close-minded liberals) and abandon the religion of liberalism he/she may learn something on this site...

I only add that if socialism is the answer, then why did the Soviet Union collapse and why does China produce products for pennies, pay workers peanuts, have a filthy environment and crush all ideas other than those of the State?

mcnamara's folly
edsel ford even told wiz kid mcnamara that he heard that they were thinking about naming the car after him. he said do not name it an edsel because i think the name would bring down sales.

mr. (my family suffered during the vietnam war) mcnamara was about to be booted when jfk picked this a.h. to serve in his cabinet. lbj kept him around. the jerk mcn. cried and said he knew that the war was unwinnable but could not tell his boss.
b.s. the war in vn was won in the 1968 tet offensive. i was there in 69-70 and the cong and nva were beat and could not mount another tet offensive after coming out of the jungle to fight a conventional war. so much for edsels step daddy.

the edsel was a fairly good car. heavy, but had a big engine in the 15 cent/gal. environment where i lived in vogelweh u.s. housing area in germany. it attracted huge crowds where ever it was seen in 58.

adios,
ab
p.s. democrats are evil and republicans are stupid.
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