We Want A Refund!

October 24, 2011

The local Chevrolet dealership here in St. Helena abruptly closed last week after being in business for 23 years.  The owner had negotiated an agreement with another dealer to provide capital and other resources to enable the business to remain open in our community, where it has supported local sports teams and charities and provided employment for 16 people, not to mention snappy transportation and reliable auto service, for decades.  But General Motors decided to reject the agreement and, on 48 hours notice, revoked the dealership’s franchise sending it into bankruptcy.  It bears noting that GM, an elite member of the government’s “too big to fail” club, would itself have closed without $50 Billion in federal assistance in the form of loans and equity investments, making all US taxpayers unwilling investors in GM stock.  So as a shareholder, I question whether the management of GM acted responsibly when it refused to allow a business owner, who had kept his dealership alive for two decades through unprecedented upheavals in the American automobile industry, to consummate an agreement that would have saved his company.  Having GM executives overseeing your business would be like having my late great-aunt, who was married five or six times, in charge of my love life.  Perhaps we need a lemon law protecting us against bad news bailouts of the automotive industry.  Meanwhile this represents another example of public money going to those who apparently feel little obligation to share their seat in the government-funded lifeboat with those taxpayers they’ve callously set adrift.

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2 Responses to “We Want A Refund!”

  1. Marvin Says:

    GovernmentMotors has zero tolerance for private sector competition.

  2. Michael Powell Says:

    Perfect. You said it just as I feel it.


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