This .......Quote:
Originally Posted by Jon Wehrenberg
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This .......Quote:
Originally Posted by Jon Wehrenberg
Rick, etal.
While I can understand all the angst about the dealers and their investments, isn't all of that what bankruptcy is about?
When I started to work in the oil field in 1981, there were 4400 rigs running in the US. By 1983 there were less than 2/3 that number and some 475,000 people had lost their jobs; just in the energy sector (drilling, production, service). No drilling czar, no bills in Congress to help the displaced workers, no efforts to help guys who lost their businesses from investments that no single car dealer has ever pushed up on the table. It all just evaportated.
Those of us fortunate (or unfortunate) to have jobs were left to work 100 hour weeks with little time off and not very good working conditions so the companies we worked for could compete and survive the downturn. Maybe the destruction of the industry was fairer since it basically took everyone down, but in the end nothing stopped the massive bankruptcies and bank failings due to the oversupply of product, equipment and services.
While I am no less concerned about the plight of the car dealers, they are but a single entity in what is sure to be a pretty massive meltdown all across the board. Right now there is 2.5 times more service equipment in the US for energy than is needed. This time last year people were screaming for more production to offset the high prices. This year no one gives a rat's ass.
What's the difference between the auto industry failures and energy? The US energy companies have managed to decrease the cost of producing natural gas and increased the supply to their own detriment. While they don't set the price of their product they certainly have to live within the market forces.
Auto makers made a deal with the devil in all their union and legacy costs. They had a chance to level the playing field with bankruptcy and they couldn't even get that right. It's truly like wiping your ass with a wagon wheel; same crap just keeps coming round and it's never going to get clean.
Oh, I forgot one important part.
Mel Torme' - This guy came by with a message for you. :)
Attachment 5050
JDUB
you are absolutely right and we're basically saying the same thing. As business owners we know there is no guarantee and the dealers are not looking for a bailout. Leave the dealer body alone, the shrinking market, lack of sales and having your wagon hitched to a bankrupt franchise is a risk we take, we know there are no guarantees. But in this situation GM and Chrysler and Car Czars have made 2 categories, who will remain and who will go away. The bill thats floating in the house is only to restore the dealers rights to operate. All the dealers want is to be left alone, market conditions will dictate who will survive.
Here, here JDub.Quote:
Originally Posted by Jerry Winchester
One correction/typo - rig count dropped nearly 2/3 by 1983 (~ 1800 in 83)....
So the guy lost two and a half fingers in a rig accident or what?? You want me to call OSHA for you??Quote:
Originally Posted by Jerry Winchester
I was just jerking your chain with the Scout comment. We towed one back and forth to Colorado for years and I was the guy who always had to do the driveshaft disconnect. One year we got the motorhome stuck up to the axles in mud and drove back to Texas in the Scout. If it had a heater we never found it and every time I see one it reminds me of the time I nearly froze to death.
Do you want the "smiling" or the "serious" Chia Obama?
Why did you have to disconnect the driveshaft? With the front hubs unlocked and the transfer case in neutral, the driveline is isolated from the transmission although it does continue to rotate.
Jerry, I was like 18 years old and while I know it's hard to believe, I did as I was told. The Scout was a 1954 model and belonged to my step dad. He keep it up and running till he died a few years back. It was slow and underpowered but impossible to get stuck. He was sure the driveshaft needed to come out when we towed it so out it came.
Be sure to water this when it arrives.
http://i72.photobucket.com/albums/i1...a-animated.jpg
Jdub: Are you going to put that on your desk? How about the center of the Conference Room?
California is like 49th in the Country for education scores for kids in grades 1 thru 12, and 40 percent of the money for education goes to administrative costs. this is but one example of how special interests have screwed the State. My Sons school, every year, asks for donations from Parents to hire a Music teacher and Art Teacher, because the State can not afford those two instructors. Pathetic!
GM and Chrysler want to stop the discounts and rebates and competiion amongst dealers, so they figure fewer dealers, less discounts, more money in the bank.
JDUB: I agree that bankruptcy is to clear out weak businesses. In the case of GM and Chrysler dealers who were cut, most were operating very successfully. GM and Chrysler just wanted them gone and their bankruptcy allowed them to throw them away with no compensation whatsoever! The only reason the dealers are now bankrupt is that they were just thrown out. As far as reducing rebates, The rebates are as high or higher than before the dealers were cut. Rebates are offered by manufacturers because certain products are not selling at a rate to hold the days supply at a reasonable amount (normally 60 days supply). Reason days supply gets too high is factories build too many cars for the market and/or it is a model that is overpriced or is not something people want in the quantity they built. Higher the rebate, the more of a problem vehicle. Popular models have little or no rebate on them. Now that they have thrown out dealers who sell 15 to 20 percent of their volume, rebates will be here for awhile. They will go down as they bring out products people want and hold production to the sales rate or less. Since they are closing many plants and bringing production down substantially, rebates will probably drop after awhile. Reason will be less production, not fewer dealers.
When times were toughest I used that as an opportunity to really get into my competitors' shorts. We always spend far less than we brought in because we knew no matter how good things were today, tomorrow they would suck.
So when times were at their worst we were able to negotiate better prices from suppliers, buy equipment failing businesses were dumping, and go after new customers from competitors that were having a hard time staying afloat.
GM, Chrysler and Ford can expect the same thing from their competitors. I would guess that while all car manufacturers are hurting, several of them still have good balance sheets and as such are well positioned to kill the weak competitors. They are crazy if they don't.
It is just my opinion, but if the dumb asses wanted to clean house, they should have dumped or at least extracted huge concessions from the UAW, and left the dealers who create sales in place. Follow the money folks, because if Government Motors and Chrysler are ready to fail at the next election time, you can bet BO will be sliding them whatever amount it takes to keep the factories humming. He cannot stand to face the huge outcry that will occur if Mr. and Mrs. America find the government picking up the tab to provide the UAW members the lifestyle for which they have become accustomed. And the government will do that when the companies fail.
Mel sends a scud to my office today. There will be a special place in POG hell for him at OKC - If he has a big enough pair to show up.
Attachment 5054
Boy Jdub that sucks!! with a capital S
Jerry I hope you enjoy the Chia. The sprouts are edible by the way, Bon appetite. I thought Loc might also enjoy such a magnificent gift, but it might look like he was sucking up to the boss so I resisted the urge.
Skiffer,
Please don't park me near Mel at OKC, I feel Arc Lights (B-52's) in my bones from the Turd Boy's now that a Scud has been launched at one of the Turds!:rolleyes:
Mel Torme,
I was feeling a little left out today after seeing JDUB's gift.
Then the mailman showed up with a gift from non other than Jim C.
Attachment 5058
Life is good.
mm
Dude, I feel slighted. A KrakChia. I feel the ACME Visa card slipping from my wallet. Good thing Mel has such a great sense of humor and is such a good sport.
I'm seriously thinking about going back to work so I have time to play with stuff like this.
Is it just me, or has anyone else noticed that the people in POG who have real world jobs seem to have the most time doing photoshop, and buying stuff at Acme?
I'm thinking Camp Schoeller at OSH is looking pretty good. It may be out of missle range.
No respect, no respect at all!:rolleyes:
Truk, I am not confident the dynamic duo shoots straight, so can we agree to park on opposite ends of the camping area at OSH. I don't want any damage as a result of a poorly aimed missle.
Damn glad I changed the locks on my coach.
Jdub: So is Obama due a trim yet? I can not forget a scud like that one.,Quote:
Originally Posted by Jerry Winchester