Are Chrysler’s Dealership Closings Political Payback?

by Sal on May 27, 2009

in Economy,Politics

One of the arguments against big government and government interference in the economy is government’s unique position to grant political favors to political allies, or to punish one’s political enemies.  One of the many reasons Conservatives believe in limited government is to reduce the potential for corruption, political favors, and political punishment from the government.

A story began to unfold yesterday that illustrates this concept perfectly.  As part of the bankruptcy proceedings, Chrysler announced the closing of 25% of its dealerships.  At the time, Chrysler announced that it was eliminating dealerships based on location, sales volume, and other business factors.  Since the announcement, evidence has mounted that highly profitable and successful dealerships were being targeted for closing as well as smaller, less profitable ones.  So what is the common link that defines which dealers were closed?  Doug Ross did some digging, and found that the dealers being targeted for closing donated to GOP candidates or to Barack Obama’s primary challengers in 2008, while virtually none of them donated to the Obama campaign.  Yet a dealership in Arkansas, run by a group with heavy Democrat ties (including President Clinton’s former Chief of Staff), has had all 8 of their dealerships remain open, with much of their competition wiped out by the decision.  There is also evidence emerging that the decision to close dealerships did not come from Chrysler Management, but from the President’s auto task force.

The dangers of liberal big government are clear.  Even if the closing of dealerships with GOP ties was not intentional or part of a grand scheme, it may have factored in at a subconscious level.  Either way, it illustrates the danger of putting government in charge of private industry.  The closings will put hundreds of thousands of people out of work, and make no sense from a business standpoint.  Chrysler dealerships do not cost Chrysler a penny.  They are independent franchises that pay Chrysler money to be a franchise, and then sell their product.  Yet under government pressure, Chrysler is seeking to close 700+ private companies, based on no discernible criteria — except that many of them donated heavily to the GOP.

{ 5 comments… read them below or add one }

The Intelligence Report Media Group May 27, 2009 at 11:57 am

We also found this to be true…We have since learned from our legal staff that this is also illegal…Our organization will call for a nationwide boycott of Chrysler and GM if the unions get control of these companies….There is nothing legal about any of this…and it is certainly unconstitutional as hell.


TRUTH May 28, 2009 at 11:40 am

Great info in here. I’m not 100% sold on it being direct attacks on GOP supporters, although there sure seems to be a lot pointing towards that. But it doesn’t change the point Big Government is making decisions where they should not be. I bet all those people that voted for Obama, and you KNOW there are many of them, that work at these places going out of business, are having second thoughts now.


Luke May 31, 2009 at 5:27 pm

Welcome to Chicago Style Democratic politics…Now at a White House near you………


alton angel September 12, 2009 at 7:19 pm

Thanks to the Obama government, i an about 60,000 iue/cwa union members of General motors has lost their health care as of January 2010. because our benfits are tied to the old GM . you think he is interested in american having health care. you may be next then we will have to vote on free health care.I,am fortunate enough to be on medicare in May 2010.


robert hawkins September 15, 2009 at 9:20 pm

after 30years with gm. and being able to buy gm vechieles . now that i will health benifits i guess iwill have to buy imports!!!!!!


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