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Letter to Obama in one of the local papers
savage170
Member Posts: 37,504 ✭✭✭✭
My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.
We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.
I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.
On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.
Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.
HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?
THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY
This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.
This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.
HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?
I beseech your help, and look forward to your reply. Thank you.
Sincerely,
George C. Joseph
President & Owner
Sunshine Dodge-Isuzu
We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.
I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.
On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.
Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.
HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?
THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY
This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.
This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.
HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?
I beseech your help, and look forward to your reply. Thank you.
Sincerely,
George C. Joseph
President & Owner
Sunshine Dodge-Isuzu
Comments
I hope this is not real,......how can they not buy his vehicles back if they are putting him out of business?
Maybe I don't realize how bad all of this is.
I hate BO's guts, and that is my first amendment right to say that.
I did NOT threaten him.
Very, very sad![xx(]
I hope this is not real,......how can they not buy his vehicles back if they are putting him out of business?
Maybe I don't realize how bad all of this is.
I hate BO's guts, and that is my first amendment right to say that.
I did NOT threaten him.
Under normal termination, Chrysler would buy the vehicles back and try to sell them to other dealers at invoice minus 3% (dealer "holdback"). However, bankruptcy laws prohibit them from expending any funds without the specific authorization of the court. Obviously, the court does not find that Chrysler has sufficient capital to repurchase the vehicle inventories of 789 dealerships.
and they wonder why people go crazy and start killing other people?[:(!]
quote:Originally posted by Marc1301
Very, very sad![xx(]
I hope this is not real,......how can they not buy his vehicles back if they are putting him out of business?
Maybe I don't realize how bad all of this is.
I hate BO's guts, and that is my first amendment right to say that.
I did NOT threaten him.
Under normal termination, Chrysler would buy the vehicles back and try to sell them to other dealers at invoice minus 3% (dealer "holdback"). However, bankruptcy laws prohibit them from expending any funds without the specific authorization of the court. Obviously, the court does not find that Chrysler has sufficient capital to repurchase the vehicle inventories of 789 dealerships.
I understand now,.......man, do I feel bad for that guy, and others in the same boat.[xx(]
Hopefully he was incorporated,......I'm sure,.....and didn't sign personal guarantees.
Granted, this occurred due to not fault of Mr. Joseph. But, this is really no different than Billy Bob's Buggywhips being put out of business because of the invention of the automobile.
Chrysler has been in financial dogdoo for years.
Honestly, I feel terrible for them and can empathize. The company that I work for (and have an ownership stake in) could easily be harmed if we had the carpet yanked from under us without warning. We try our hardest to diversify our means of distribution to avoid this, but sometimes there are things beyond control.
This is the risk of being in business. You have to try and take steps to protect yourself.
Unless that family can establish a profitable used car business, they will likely lose everything they own. Dealer principals plus any and all stockholders have to pledge both corporate and personal guarantees of the dealership debts. Hopefully, their creditors will work with them to give them time to liquidate and minimize their losses but you know how buyers will take advantage of "distress" sales. As a former Chrysler executive, I feel very badly for all of these dealers and their families as well as their customers and suppliers. Terminations like this definitely have a "ripple effect" on the local economy.
Wow![:0][xx(]
quote:Originally posted by Spider7115
Unless that family can establish a profitable used car business, they will likely lose everything they own. Dealer principals plus any and all stockholders have to pledge both corporate and personal guarantees of the dealership debts. Hopefully, their creditors will work with them to give them time to liquidate and minimize their losses but you know how buyers will take advantage of "distress" sales. As a former Chrysler executive, I feel very badly for all of these dealers and their families as well as their customers and suppliers. Terminations like this definitely have a "ripple effect" on the local economy.
Wow![:0][xx(]
I once set up a new Dodge dealership and the personal and cross-corporate guarantees were 72 pages! [:0]
quote:Originally posted by Marc1301
quote:Originally posted by Spider7115
Unless that family can establish a profitable used car business, they will likely lose everything they own. Dealer principals plus any and all stockholders have to pledge both corporate and personal guarantees of the dealership debts. Hopefully, their creditors will work with them to give them time to liquidate and minimize their losses but you know how buyers will take advantage of "distress" sales. As a former Chrysler executive, I feel very badly for all of these dealers and their families as well as their customers and suppliers. Terminations like this definitely have a "ripple effect" on the local economy.
Wow![:0][xx(]
I once set up a new Dodge dealership and the personal and cross-corporate guarantees were 72 pages! [:0]
I was only asked once for a personal guarantee. Trane tried for years to get me to be a "stocking" dealer in this area. They require a certain amount of product to be floorplanned per se. They always wanted the personal guarantee, and I always refused.
They finally set me up without it. Never lost a penny from me, but I realize we are talking huge amounts of money here.
My heart does go out to them, as it appears they were still solvent in their operations.
Nobody in their correct mind will ever open an American car dealership after what is taking place now. If they do,......they deserve whatever happens.
Wonder if BO's mug will be put on the signs of all the surviving dealerships?[xx(][xx(]
I wonder if Chrysler realizes they are "screwing their own pooch" by doing this. Eventually those cars will get sold but with no warrantees to back them up. Those customers , even while realizing what they got into, are gonna be pizzed at Chrysler in the end and probably not buy from them again.
On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. Isn't that a court case??
quote:Nobody in their correct mind will ever open an American car dealership after what is taking place
I wonder if Chrysler realizes they are "screwing their own pooch" by doing this. Eventually those cars will get sold but with no warrantees to back them up. Those customers , even while realizing what they got into, are gonna be pizzed at Chrysler in the end and probably not buy from them again.
You are forgetting the "messiah" has said that the US government will back up all warranties!
Lets call it a BO warranty,.....it stinks.
quote:
On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. Isn't that a court case??
Nope. The dealer agreement is renewed every year at the option of the manufacturer, usually in June just before new model introductions. Besides, Federal bankruptcy laws supercede any state franchise laws.
[img][/img]
Wonder who he voted for in the election! [;)]
That would be an interesting fact to find out.
NOT!
Very, very sad![xx(]
I hope this is not real,......how can they not buy his vehicles back if they are putting him out of business?
Maybe I don't realize how bad all of this is.
I hate BO's guts, and that is my first amendment right to say that.
I did NOT threaten him.
oops there goes the 150k jobs Our dear leader has saved or created since taking office.
The dealer is screwed for life, his finances are ruined, his job oportunities are gone, his company employees are toast and the vendors are sure to follow.
This is very real and it is happening across the country. one of my best friends works at a dodge dealer, but their company also owns a chevey dealership, It will be closed in much the same way with the same results.
GM is closing close to 1200 dealers and dodge another 900 that is 2100 before ford even starts in (and you know they will) and before GM files for BK (and you know they will) 2100 dealerships across 48 states thats like 40 per state that each lose 100 jobs minimum.
I can't blame Obama for this, Dodge has been on the brink of bankruptcy since the 70's and nothing was going to save them this time. Still our government has no business involving itself in private sector business any way.
There are lots of reasons why Obama needs to be run out of office in any way possible before he completely destroys the economy and his master plan to create the one world order is successful.
I hope Ford can hold out.
<Sarcasm>
Can't do it, the F-350 super duty is way to large for The great "O's" plan and its gotta go to!
Toyota, Nissan, are on the back burner to take over the big 3 for a small green truck redux. (sad part my gut tells me I am not far off).[V]
What does obama have to do with it? He didn't bankrupt the corporation, they did it to themselves.
No he just pushed it over the edge. 55% of Chrysler is now owned
by the UAW retirement fund. The other is owned buy government bail outs.
Thus the UAW and the Government get to call the shots.
Mr Joseph, I feel really bad for you, your family, and your employees and your situation. I'll be more than happy to write my congressmen about this but, I must warn you, I don't think that o-bama really gives a crap about your family's business. He wants the power and wants the government to own everything. He wants you and your employees dependent on government handouts. This is how marxism, socialism, works.
May God bless you, your family, and your employees and their families. While you have provided jobs for many years for 70 people, thereby supporting not only those employees but their families as well, this is no longer in fashion. They would be better off if on the public dole. You sir, are a evil rich man, and you only got the things you have by stealing and cheating the American public and Government. We all know that rich people don't pay taxes, right? That's what the o-bama administration is trying to convince us.