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Bills to reverse dealer closings gain steam


RJCover - There's been absolutely no illustration by either GM or Chrysler that smaller dealer networks are more effective or that they reduce costs for the manufacturer. Cars are ordered via the internet; finance approvals are obtained for the most part via auto-approval programs that are internet-driven. Manufacturer field reps are obsolete; however, this cost, in addition to many, many others, is passed on to dealers. Field activities are surely a net gain for manufacturers given the number of unwanted additional cars they're able to force onto dealers. The real story is that GM and Chrysler manipulated the bankruptcy system to award franchises to their "preferred" dealers in every market in the country - nothing more or less. If that's the way Congress intended the bankruptcy system, then we don't need corrective legislation; however, it appears that most voters who have weighed in don't agree with that use of the bankruptcy process.



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