Some Wis. car dealers could be in expensive bind
MILWAUKEE (AP) — State officials say they're scrambling to help Chrysler and General Motors franchises who could be stuck in a costly bind.
Under Wisconsin law, car dealers can't sell new vehicles if they don't have franchise agreements. Chrysler has said it's canceling the franchises of 18 Wisconsin car dealerships, and GM is ending an unspecified number.
The current law means the dealers would have to keep their new cars until the next model year and then sell them as used.
Steve Krieser is the supervisor of the state Division of Motor Vehicles field investigation unit. He says officials hope to have a solution in the next 30 days.
He says one option might be to allow a 30-day window for dealers to sell through auction or to other dealers, but not to the public.

May 25, 2009 at 6:53 a.m.
Suggest removal
Zoom, thanks for the mini-lesson. You didn't really address anything I said, but that's fine. At least you added something to the conversation. Have a nice holiday.
May 24, 2009 at 9:25 p.m.
Suggest removal
This is what happens when companies go bankrupt folks.
SuperDave, you obviously know nothing about distribution. When sales drop by 40+%, and four or five dealers are withing 15 minutes of each other, they compete with each other, and not the competition. This drives down prices, which drives down resale value, which ultimately hurts the brand, meaning the manufacturer. The last thing a car company wants to do is compete on price alone, when their legacy costs are higher than the transplants. If McCain would have been elected President, I guarantee that the outcome would have been no different.
May 24, 2009 at 9:20 p.m.
Suggest removal
It is wonderful that we have a place to express our opinions and to vent our frustrations and I thank the Gazette for that. This current bash fest or political blame fest will continue because we all differ in our opinions. That’s us. I only ask that we take a moment to honor those who have protected and continue to protect our rights in the USA. Memorial Day is very important to me. Thanks.
May 24, 2009 at 7:57 p.m.
Suggest removal
What, did the fact that there is a limited supply of petroleum on the planet just recently come to their attention?
May 24, 2009 at 5:33 p.m.
Suggest removal
Chad_Vader I agree with you 100%. Your post is so far the most 'on the money'. The automakers produce what people want, unfortunately they can't re-tool their plants every time gas prices go up or down a couple of bucks.
May 24, 2009 at 4:17 p.m.
Suggest removal
If you would quit listening to Obamas words and watch his deeds you might see the light.
also, it is evident he is following Bushes policies internationally.
Maybe, just maybe, when you see your energy bill go up 1300 plus a year, your taxes risen, and gas at 6.00 a gal. when he puts in his cap and trade bill, when you see nationwide unemployment at 10%, more companies having to be closed because of taxes and regulations, the gnp down to 1 or in the hole, you will see the light. But, I'm sure you will say it's Bushes fault.
I wonder how many of the union workers are so hot for him now.
May 24, 2009 at 4:14 p.m.
Suggest removal
Remember the Chevette?
I sure do.
It was my first car. It was black with gold pinstrip on the side.
May 24, 2009 at 4:08 p.m.
Suggest removal
Remember the Chevette?
May 24, 2009 at 2:50 p.m.
Suggest removal
The market always varies, and it is getting harder to gauge real far in the future. During the last gas crunch, people wanted small cars. As soon as the economy got better, they changed their minds. Didn't want to drive small tin cans anymore, maybe needed more room for the kids, etc. Same is happening now, just that we need to use technology to make mid size cars and CUV's/SUV's more efficient to be better off as a country and a world leader. Why do you think foreigners aspire to be like us? They don't really want to drive those tin cans either but are forced to choose what their governments allow them to choose.
May 24, 2009 at 2:45 p.m.
Suggest removal
janesvillean what conspiracy theory is that? Perhaps the facts?
May 24, 2009 at 2:41 p.m.
Suggest removal
janesvillean:
me thinks the gm and chrysler policies are being driven by barry o's policies.
i have said that several times and yet get slapped down by BO supporters who state that it is the respective company's policy.
the restructuring of both companies is being managed by the current white house, to state otherwise would suggest a mind impervious to what is actually occuring.
May 24, 2009 at 2:25 p.m.
Suggest removal
I'm glad someone is finally standing up for the dealers. They've invested hundred of thousands if not millions of dollars in their franchise and now Chrysler is just going to come in and take it away. Don't get me wrong - something needs to be done. But they don't get a buyout package like the employees in the factory. They get stuck with inventory that they can't sell. They're told "We're going to void your franchise agreement but you can keep the cars. Oh but you can't sell them as new cars. You have to wait until the next model year and then you can sell them as used." That's totally fair, don't you think? I hope they can do something to help these dealers because it not only hurts them but all the businesses that depend on them, from the uniform company to the parts stores to the independent tool salesmen, as well as all the schools and private organizations that they donate to in the community. And if these dealers close, which many probably will eventually, then there will be that much less state and local sales tax available for the community. I could go on forever. I just hope everyone knows how much these dealers mean to the economy and the community.
May 24, 2009 at 2:02 p.m.
Suggest removal
booch11, the policy is there to protect the dealers from being undercut by the company from which they bought the franchise.
.
RetiredAirForce, please air your conspiracy theory du jour. You seem impervious to the obvious.
.
garyprimer, when did GM honestly try to compete in the fuel-efficient market, ever? Certainly the history of their last ten years was one of concentrating on the truck and SUV market which is anything but fuel efficient. It worked, as long as people could buy cars with the equity from their homes.
May 24, 2009 at 2:01 p.m.
Suggest removal
Thank you, you are so kind to notice that quality in me.
May 24, 2009 at 12:30 p.m.
Suggest removal
"Reality is that every time GM tried to make a fuel-efficient car, they could not compete with another company..."
-
Yes keep thinking "not making people buy" fuel efficient cars is the reason the car companies are imploding...your are a genius.
May 24, 2009 at 11:57 a.m.
Suggest removal
gotta love the unintended consequences of this nonsensical policy.
May 24, 2009 at 11:34 a.m.
Suggest removal
Reality is that every time GM tried to make a fuel-efficient car, they could not compete with another company. I have been a lifelong loyal GM owner with the exception of a couple of youthful indiscretions with Dodge vans (they were just way cooler than Ford or GM).
May 24, 2009 at 11:34 a.m.
Suggest removal
It's a "franchise law", not a "franchise tax". The businesses pay normal business and sales taxes. The state regulators are actually going above and beyond the call of duty in finding ways for the dealers to not be completely screwed, here.
http://www.jsonline.com/business/4588355...
.
One does feel empathy for the people losing their jobs, but they're really just some among the thousands of assembly line and white collar workers that both GM and Chrysler are shaving in an attempt to winnow themselves to smaller, more viable companies -- something analysts have recommended for years. This extraordinary recession is making it a wrenching transition for all.
May 24, 2009 at 11:32 a.m.
Suggest removal
Wow! I simply point out what the Obama administration is actually doing (and hold them accountable for it), and that somehow equates to "bashing" him? And I "eviscerated" him? That's really funny LOL. Obama is not a little boy who will have his little feelings hurt if Americans voice their opinions regarding his actions, he is the bought and paid for figurehead of the actual powers of this world. The buck stops in Washington DC. As long as the Obama adminstration is in office, in a free society they can and should expect that they will be held to account for their actions, the same as every previous administration. He does NOT get a pass by reason of color, creed or popularity.
And regarding your comment that I "need to get over the fact that the president isn't a republican", that's pretty easy since I'm not a republican (sic) either. You're way off base on most of your comments, but don't let the facts get in the way of your opinions.
May 24, 2009 at 11:24 a.m.
Suggest removal
Wisconsin has a franchise tax, ya got to be kidding. Forget what I wrote earlier, a tax is involved here & a tax never dies.
May 24, 2009 at 10:20 a.m.
Suggest removal
SuperDave, take a minute to quit bashing Obama and realize that this has nothing to do with him. This is because of the economy and the fact that no one is buying cars. Chrysler and GM are closing those dealerships, not Obama! They are doing it so that their supply is more in line with their demand. Geez. Bush's administration helped get us into this mess. Obama is trying to fix it. And not by closing dealerships. You need to get over the fact that the president isn't a republican. We're all gonna have something to complain about anyway, regardless of our party choice.
I suppose that you would have blamed Obama whether or not he had given federal loans to the domestic automakers and then eviscerated him for the results of said action (which is basically what you're doing now). I'm sure you opposed the loans and are now opposing what is happening as a result of the loans. What would you have opposed if he didn't give the loans? Would you have opposed the liquidation of Chrysler and all the jobs here in the U.S. with it? What about GM? Would you have opposed driving this country further into a recession? A great depression? Cause, guess what? That's what your pal Bushie was doing and you supported him, apparently.
May 24, 2009 at 10:15 a.m.
Suggest removal
"As for the automakers, the federal government tried for years to get them to make fuel-efficient models. They fought them every inch of the way"
-
Guess you don't have a grasp on reality. If consumers would have bought them they would have been made...demand is what drives the market; not the government. Do you people honestly think that the car companies tried to turn down money they could have made selling the cars you claim would have sold? Market research is not a new idea.
May 24, 2009 at 9:59 a.m.
Suggest removal
"Chrysler has said it's canceling the franchises of 18 Wisconsin car dealerships, and GM is ending an unspecified number". This is being done by the Obama auto task force. No, it doesn't mean that Obama created the entire mess. It doesn't mean he had anything to do with Wisconsin laws. And you can characterize it as "cleaning up someone else's mess" all you want, it is what it is. The national government is now controlling two of the (former) "big three", and they are making the decisions regarding the forced closure of dealerships. Many of these dealerships have been profitable businesses for many years, most of them are privately owned. For the government to come along and dishonor long-held contracts is shameful. And how does this help the situation exactly?
May 24, 2009 at 9:55 a.m.
Suggest removal
I know I'm a little crazy but how about ending the franchise law. After all, this is the 21 century and the model T's are long gone.
May 24, 2009 at 8:56 a.m.
Suggest removal
I really doubt that Clinton, Bush, Obama, or Teddy Roosevelt had much involvement in Wisconsin's car dealership laws. As for the automakers, the federal government tried for years to get them to make fuel-efficient models. They fought them every inch of the way and now they show up at the front door of the White House with empty pockets and hats in their hands. I hope that you folks out there realize that every day you are providing every penny that GM spends and we will never see a penny returned
May 24, 2009 at 8:39 a.m.
Suggest removal
I love how Obama gets blamed for this mess. He trying to clean up what was left behind by the last wonderful administration. As for the car companies, god forbid the public could actually get a good deal on a vehicle for once.
May 24, 2009 at 8:38 a.m.
Suggest removal
umm... yea... this all was going down WAY before Obama came into office. He's just trying to clean up the mess that was left for him. IMHO
May 24, 2009 at 8:17 a.m.
Suggest removal
I am amazed how people can walk around with blinders on all the time.
May 24, 2009 at 8:08 a.m.
Suggest removal
Too bad the state government has to step in to alleviate problems caused by the Obama administration.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.