Fox News Host Gretchen Carlson: Government Unfairly Shutdown My Parents' GM Dealership

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Many have claimed the federal government was playing fast and loose with the rules surrounding its takeover of General Motors and the circumstances surrounding the selection of which dealerships would remain open and those that wouldn't. Fox News' Gretchen Carlson came forward with evidence of this through a personal account of dealership closings.

Carlson, a co-host on the Fox News Channel's morning show "Fox & Friends," appeared on Glenn Beck's June 9 program and questioned the logic behind the decision reached by the government and General Motors (GM) to close down a dealership that has been in her family for 90 years.

"I'd like to get a hold of the car czar too," Carlson said. "Never did I think personally that I would need to get a hold of him, but now I do because my parents have owned a General Motors dealership in Anoka, Minn., for 90 years and they were terminated last week and they would like to know why. They would like to know why from the car czar."

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According to Carlson, the dealership had exceeded the obligations set forth by GM for its dealerships, but were still facing a shutdown which would mean laying off 80 of the dealerships employees.

"It said you would no longer be part of the new General Motors," Carlson said. "Apparently there was criteria, but let me tell you this Glenn - they haven't lost money. They are a profitable operation. Their objective, they met at 103 percent. You can't go higher than that and yet they are being terminated. There are 80 employees who will not have jobs anymore. My parents lay awake at night worrying about those employees."

Carlson cited one dealership that was allowed to stay open that involved a government official.

"Many, they all had a meeting yesterday in the state of Minnesota, but here is the ironic thing - there was a dealership that was closed in the first round in the metro area of Minneapolis. That person was able to get a meeting with GM executives last week for an hour and a half. And lo and behold Monday night, that dealership is back in business. Now you tell me this isn't about who you know and who you can speak to."

According to the Jun 9 Minneapolis Star-Tribune, Sen. Amy Klobuchar, D-Minn., intervened in the shutdown of a dealership outside of Minneapolis - Bloomington Buick Pontiac GMC, owned by Paul Walser. Following her involvement, GM had reversed it decision and determined the dealership would remain open.

"There was government intervention with a political person who was able to set up that meeting," Carlson said. "But I thought this was supposed to be that you were closing dealerships because they weren't performing."

The dealership shutdown also came with strings attached. The "Fox & Friends" host said GM threatened to not honor warranties on the remaining vehicles sitting on the dealerships' lots following the shutdowns if the owners failed to agree to General Motors' terms.

"It gets worse because by Friday (June 12) terminated dealers by GM have to sign what's called a wind-down agreement," Carlson explained. "And if they don't sign it, they have a gun to their head - they will not get any warranties on any of the vehicles that are currently sitting in their lots, which the judge [FNC contributor Andrew Napolitano] tells me is illegal."

Napolitano confirmed that and said federal law required GM to fulfill the obligations under the warranty and such agreements can not alter those terms. But one of the parts of the agreement being forced on those auto dealers according to Carlson was a "gag order" that forbids public discussion of the agreement.

"There's also a gag order in the agreement - a gag order that says you can not speak to anybody other than your employees unless you get GM's consent," Carlson said.

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Also this morning.....

....Fox and Friends had video clips of Chrysler franchisees who will have to close down.  One man called the process of picking winners and losers Marxism and one particularly sad yet at the same time amusing clip had a woman almost in tears complaining, "Where is the hope?  Where is the change we voted for?"

Lady, you're experiencing it first hand (just like Joe the Plumber) and please don't tell us you were surprised by any of this. 

There Is No Hope and Tele-Messiah Will Keep Your Change!

"Where is the hope?  Where is the change we voted for?"

We tried to tell you lady but you said we were all rascists! Time and again we heard the familiar line about Qbama's race deciding our vote! The irony is his race did decide the majority of votes he received! We saw him for the Communist he is! All I can say lady is grab your ankles like the rest of us! At least I can have the joy of saying "I told you so!" as we're bending over!

Sic Semper Tyrannis!

funny

I saw a bumper sticker going around the internet. It said something like "I'll keep my guns, my money, my religion. You can keep the change."

DICTATORSHIP.

PERIOD.

NOLO PUGNARE ME OCCIDERE

What Obama giveth with one hand he taketh away with both hands.

Serious question

Why does a dealer cost Detroit money? I thought the dealer paid for the franchise and pays for the cars (floor plan) and parts. I suspect the dealer pays Detroit for the privilege of being a dealer (share of national advertising, etc). If the dealership was owned by the manufactuor, that's one thing but I think most/all are privately owned.

So, how does closing a dealer save Detroit money? Serious question.  

No cost

If you send the mechanics to factory schools, you pay travel and meals and the classes are paid for.  The factory pays a coop on advertising to the dealer.

 

Obama thinks every one buys cars on the web and dealers are redundant. 

They will cancel dealers till sales improve.  Fire workers till morale picks up.

Re "classes are paid for. 

Re "classes are paid for.  The factory pays a coop on advertising to the dealer"

Classes can't cost that much. And if there are fewer dealers to spread the advertising cost around to then how does that help?

Not trying to be argumentative and appreciate your insight but I would think that the bulk of the $ flow is towards Detroit, not towards the dealer. Just truly trying to understand how this works.

But then, I know Jack about the car business...hey, wait, I could be Dear Leader's Car Czar then! 

Another motive . . .

Since the dealership mechanics are the folks who have to do the corrective/repair work warranteed by the manufacturer, then it's more in the manufacturer's self-interest to pay for the training of the local mechanics.

Would you buy a car from a manufacturer whose warrantee directs the owner to ship the auto -- presumably at manufacturer's expense -- to a factory for correction of a defect?  And how many mechanics would the manufacturer have to retaine either on the job or on call, to handle hundreds of thousands of vehicles?

The dealerships are paying their mechanics to be on hand for routine and recall maintenance of the product.  The manufacturer makes out like a bandit by only paying for classes. 

"Would you buy a car from a

"Would you buy a car from a manufacturer whose warrantee directs the
owner to ship the auto -- presumably at manufacturer's expense -- to a
factory for correction of a defect? 

Comrade, please don't give them any ideas.

_____________________________

Camouflage conservative in Baghdad-by-the-Bay

Good Questions

This is the question I have as well, and I have not seen it answered in all the things I've read on the car disaster. I'm assuming it's a McDonald's-like franchise model where a dealer buys a franchise for $X (one-time?), then buys product wholesale and sells it retail. The structure and inventory costs are his to bear through whatever means he can. So because the company has gone bankrupt, the franchise fee is lost? And non-transferable?

We know the total company volume divided by the number of dealers for GM and Xler is a smaller number than for Toyota and Nissan. So what? As long as the dealers are selling cars and running profitably, isn't more dealers a good thing? Isn't that a measure of level of service? How do we know that Toyota and Nissan have the perfect ratio? Maybe they think they have too few dealers?

Now it's possible that they think with fewer but larger dealers, they can charge more wholesale for their cars and let the dealers make it up in volume. This is just one theory. But the way it's generally phrased, is as you say, 'closing dealers will save money', and that makes no sense.

I am sure it is part

of the new 5 year plan. 

"Somehow, I told you so, just doesn't quite say it." Will Smith in 'I, Robot.'

dealer cost

The answer is it doesn't except in Obama's world.  This is all a power play to re-distribute wealth from one group to another.  Check out and see how much higher the percentage of Minority owned dealers there are now than before the closings.

Typical GOP

contributor ... whining when the Obama administration closes their business for giving to the wrong party.

 

Does anybody think this sounds like Kenyan crony captialism rather than America?

As if this isn't bad enough...

The new Chairman of GM knows nothing about cars.  WTF is going on here?!  

“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”

Samuel Adams

Would Anyone?

Would anyone buy a new or used car from this guy??

→ "We Won!"

Barack Obama has this message for Gretchen Carlson;

"We won!  Take that, you snooty white woman!"

"The Rule of Law is the only thing that separates us from Democrats" - a Firefighter

Here's yet another example

Here's yet another example of just how smart these smug a**holes truly are in this administration. Didn't any one of them consider the ramifications of closing down the dealership owned by the parents of a popular morning show hostess on the FOX network?! A botched situation like this would get one fired in the private sector, but these morons just keep rolling along. 

I am sure they closed it

I am sure they closed it down BECAUSE their daughter works for the evil Fox News.

Why would the CEO have to

Why would the CEO have to know anything about cars?  Uhbama's going to tell them what to build and how many to build anyway.  GM's big problem is going to be getting people to WANT them. Only self-righteous enviro-weenies are going to be waiting in line for the new Chevy TC+h*.

*Tin Can with a hamster.

"Beauty is only skin deep, but liberal's to the bone." - me

We'll have no choice

...but to buy GM cars.  Since the government is in charge of GM, they will pass laws that will benifit GM sales by forcing Ford (the only US car company that didn't take a bailout) to comply with new regulations.  Chrysler is already emasculated by being sold to Fiat.  Next they will raise tarifs so it will nearly extinguish the foreign car competition in the US except for car companies like Fiat, Tata, any car from China (since they basically own us anyway), ect. 

So, the choice in the future will be to buy a wothless green car from Government Motors or Ford, buy a piece of sh*t rinky-dink Italian or Indian car, or a toxic waste death trap from China.  Yup, hope and change will be the end of us.

“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”

Samuel Adams

→ Buy American!

Might I suggest one of the Toyota or Honda vehicles manufactured right here in the USA?

Obama does not yet own or control either of these companies.

Consider FORD, a company trying very hard to compete the seemingly limitless funding of GM/Chrysler.

The only reason Clarence Thomas is on the Court is because he is black - Joe Biden

We'll have no choice Pt. 2

Toyota and Honda's cash goes back to their countries.  When we start doing the tarrif crap and excessive regualtions, Toyota and Honda will no longer find it profitable here.  Ford will be forced through regulation to comply with the same business practices as GM & Chrysler.  The Obama administration will practice protectionism because GM is really too big to fail now. That will cause the foreign car companies to not only bail on us, but our cars will no longer sell overseas.  The cars that are currently on the road will be outlawed and we will have to trade in our cars for the "green cars".  We will get a nice tax credit for doing so of course but then in order to fund those nice tax credits our taxes will rise.  

“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”

Samuel Adams

→ Disagree

I can buy stock in both Honda and Toyota.  I can win or lose money on either investment.

And I'm not sure, but I'm thinking those are American workers building the Toyotas and Hondas in those American plants.  They probably get paid real money.

And tariffs?  All they do is ruin the whole industry.  A tariff is an admission by the host country that it cannot compete for quality at a price the consumer will pay.

The only reason Clarence Thomas is on the Court is because he is black - Joe Biden

disagree as much as you like.

Toyota and Honda's workers will get paid so long as they are making the cars here in the US.  When the head of the companies in Japan decide that it is no longer profitable here because of tariffs, those plants will close.  Yes, tariffs will ruin the whole industry.  What's your point?  Everything else the Obama adminstration has done so far has been working towards ruing the industry.  Why would this administration let the possible failure of an industry prevent them from setting tarrifs? Your stocks you own in Toyota and Honda will plummett thanks to the government's involment in the auto industry and banking.  The government is practicing protectionism now & Canada is not happy at all.

“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”

Samuel Adams

→ No way

There's no way my investments in Toyota and Honda will plummet, regardless of what the American Government does.

That's economics 101.

The only reason Clarence Thomas is on the Court is because he is black - Joe Biden

Yes, way.

It could happen.  I have three words for you:  Smoot Hawley Tarriff.  It's going to happen again.

“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”

Samuel Adams

→ No Way!!

Economics 101.

My statement was "I can buy stock in both Honda and Toyota."  You assumed I do, or will, invest in them.

If my investment in Toyota is $0, I gain nothing and lose nothing.

Your three words apply to my investment in Toyota and Honda by a factor of $0 .

If and when I decide to invest in Ford again, I might take your words to heart.

The only reason Clarence Thomas is on the Court is because he is black - Joe Biden

They will if they are forced

They will if they are forced out of the American market.....they could come back after a while due to world demand, but they will plummet initially on the news they pull out of America due to unprofitibility.

I noticed a program

I noticed a program yesterday on the news that I am not sure if its up and running or still being discussed, but its the "Cash for Clunkers" program, basically turn in your SUV and get I think it was $4500 credit (govt sponsored of course) towards buying a "Green Vehicle".... you know the ones that only haul 3 small childeren and a minute adult.

So its already happening, this is just the first big push towards getting us into the cars we "Want" to buy.

There you have it.

I guess I sound like a nut case with my predictions, but I bet none of us 2 years ago ever thought that we would one day be the proud owners of a car company, another sold out to an Italian auto maker because the government told them to do it, the government would own the banks, and we would be hundreds of trillions of dollars in debt.

“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”

Samuel Adams

And that's only part of it...

You're right about the government complicating it... but here's the bigger deal, they are subsidized by our taxpayer dollars, Ford isn't.

So, one company subsidized by the taxpayer, the other isn't, which is going to have the ability to sell cheaper, etc?  It's an old problem.

But this is the government mentality right now... Look what Chucky Schumer said regarding health insurance:

"If you don't have a public option, who is going to keep the insurance companies honest?  Most of us don't believe
that government regulation will be sufficient because they have the
profit motive
." (source: Reuters, emphasis: mine)

This is basically saying that insurance companies can no longer make money!!! Why should they stay in business?  Where's the reporting on this?

Very slowly now for the libs who visit this site: if the government is in a business, it is subsidized by taxpayer dollars, they have an unfair advantage over private business, who must make a profit to stay in business.  You cannot have the government competing against private business in a FREE economy!!!!

HK, you are right, CEO's know nothing..

The oaf is having his car czar, dig through the TOP SECRET files looking for that 100 mile per gallon carburetor. That sucker will put a hump in your hood.

Reagan VS Carter and 0bama

Please don't call Goverment

Please don't call Goverment Motors "Detroit." Detroit is a free-market town. GM is now anything but.

→ Detroit

The whole country is hoping FORD can pull through.

GM and Chrysler have sold their birthright, not for a bowl of soup, but for a fancy Italian dinner and takeout Chinese.

Got no use for those two companies.

The only reason Clarence Thomas is on the Court is because he is black - Joe Biden

Um...

Does this scare the living hell out of anyone else? I really don't know how we're supposed to survive another 3.5 years of this tyrant. He honestly is the worst person that's happened to this country.

We are buying 3 new full size pickups for our business

this year. I have owned Chevys since the 70's. There will never be another GM in our shop. I refuse to support the new "owners" of this company. I will do all I can to help Ford thrive. I just wish they had XM and Onstar standard in their vehicles. We have saved hundreds of dollars on locksmith charges by using Onstar to unlock the doors. Oh well, I guess I will support the local locksmiths as well.

 

"Live for yourself...there's no one else more worth living for.
Begging hands and bleeding hearts will only cry out for more"- Rush--Anthem

I havnt been happy with GM

I havnt been happy with GM or Dodge in years, which is why I have driven Toyotas for the last 8 years. I also have not been happy with the Democratic party..... which is why I have voted Republican.

We have a choice, buy what you want and vote how you want. Unfortunatly because of a choice many Americans made last November, choices are now being taken away from Americans, as in "Sorry, we know your a successfull dealership, but you are no longer welcome in the Government Motors family".

I have a feeling this however is just one of many choices to come that will disappear.-------All for the good of the little guy of course---

Jail

One of several things needs to happen NOW!

1. The Supreme Court needs to declare a national emergency and send US Marshalls to the White House and handcuff this marxist SOB and take his a$$ immediately to jail.

OR

2. Presidential impeachment procedings need to start immediately, in the congress.

OR

3. The American People must immediately start demanding that their state legislatures begin motions for a Constitutional Congress to begin state seccession procedures.

OR

4. The American people should begin the planning for an immdediate revolution, be it peaceful or violent, either one.

Welcome to the third world.

Welcome to the third world. If you think for one moment that Obama and his fools aren't for real, guess again. They don't care who owned what before; that was then and this is now. They have been trained to believe that we are the cause of all their woes, and once we're out of the way, true justice can prevail. It is nonsense! Despotism can't work, and will not work (except possibly in Chicago). President Obama is simply implementing the agenda of the loony left with all of it's attendant hates, prejudices, myths, lies, and now, Ms. Carlson, it's discrimination and lawlessness. After the Supreme Court decision failed to uphold the law of our land, it's difficult to guess about our future. However, we either have the rule of law, or we we end up with tyrannical rule--and we're headed there now.

 

Ford SUVs

Let's all protest by buying Ford SUVs.  Oh, and anything Gretchen says is just fine with me.

 

Enforce Term Limits if They Won't:  Vote Against ALL Incumbents in 2010.

payback ??

Gee.. I wonder if any of the dealers are conservatives and\or republicans?  hmm....Certainly that would have NOTHING to  do with why they're losing their businesses.

If anyone thinks that there won't be huge paybacks and terrible back stabbing going on in this administration, then you're being naive. He's been given incredible power and it's obvious he's using it.

In case your

ObamaNation in Action!

Here is a blog that I consider a must read.  Funny stuff!  http://theblackspher...

What crass,self promtion.

What crass,self promtion. Don't fell bad, I do it too. HA You have some of the best stuff on Dear Leader that I have found.

A Voice From Vanceboro

Semper suprene nitens

ObamaNation in Action!

Here is a blog that I consider a must read.  Funny stuff!  http://theblackspher...

I vote to let GM and

I vote to let GM and Chrysler fail entirely.  Honestly it would be fair to everyone to just shut down every GM and Chrysler dealership. 

I decided to let my money

I decided to let my money speak on where I stand on this issue....I bought a 2009 Ford Edge two weeks ago.  as long as Alan Mullaly, and not Barack Obama, is running Ford they will be my fist choice for transportation.

Birth Certificate

I seem to recall that the lawsuit to prove Obama had a valid US birth certificate was thrown out in November because the plaintif could not prove they were harmed by having Obama elected.

 I think plenty of us can prove that now.

 

`My name is Obamandias, God of Kings:
Look on my works, ye capitalists, and despair!'

There are still a number of

There are still a number of outstanding cases on this same issue, and some brought by people "with standing", including a quo warranto case delivered directly to Justice Roberts. It ain't over yet (but may be if that racist Puerto Rican woman-thing is wrangled onto the court).

As to the dealerships, I do feel for the roughly 100,000 people who lost their jobs due to imperial decree. Great way to create jobs, Barry. 

GREAT tagline.

 

NOLO PUGNARE ME OCCIDERE

What Obama giveth with one hand he taketh away with both hands.

Maybe Gretchen's nauseating

Maybe Gretchen's nauseating attempts at being 'fair and balanced' are at an end?

One of the 34% who thinks George W. Bush was a great President. One of the 61% who wants to bring back the stock and pillory (yep...approval for Congress now at 39%...do you believe that!?).

→ Sure hits home

Gotta be tough when the President of the United States targets your family's business for reasons that can only be political.

If Obama really cared about GM, it just seems he'd keep the profitable dealers open for business.

And that's just one dealership.  And 80 employees.

The only reason Clarence Thomas is on the Court is because he is black - Joe Biden

Sure, 80 people lost their

Sure, 80 people lost their jobs and thats too bad.... but gosh darn it Obama has SAVED 600000 jobs by doing this!!!!

Profitability and the business model have nothing to do with this, its all about "Saving" fictitous jobs.

Newt/Corruption

Newt makes a good point on the auto disaster today, pointing out the corrupt relationship between Big Union and the Bamster. If a private company did what the unions did during the election, it certainly would be called corruption. Why do union goons get a pass? Let's hope the next Republican administration does an investigation into this.

Once, We Would Have Called it a Scandal: http://www.humanevents.com

thugracy

Welcome to the new Chicago style thugocracy, or if you prefer the old Stalin style. Cronyism at it's worst or best if you happen to be one of the cronies. There should be massive investigations by Congress and DAs across the country. But of course congress won't because John Conyers is Chairman  of the Judiciary Politburo. I'm beginning to believe the only way to stop the statist rape of the Constitution will be through the second ammendment. The Second Ammendment to the U. S. Constitution was put there exactly for this purpose.

Democratic Recipe for Socializing an Industry or Institution:

Break it: Load it up with government mandates then call press conferences about the resulting 'crisis'.

Buy it: 'Rescue' it by government intervention, usually financially, or offer a governmental alternative which will become more attractive as government imposes more rules and requirements on the competition; then

Run it: Take complete, unaccountable control of the industry, hiring, firing and restructuring at will while continuing to run competition out of the market altogether.

Banking, the automotive industry, and currently the healthcare industry are three prime examples of the effect of crushing government dictates intended to destroy them so that government can ride to the 'rescue'.

NOLO PUGNARE ME OCCIDERE

What Obama giveth with one hand he taketh away with both hands.

Dealer shutdowns

This entire GM/Chrysler fiasco is a result of America electing a Communist Dictator as president. Obama has the same fate in store for many other major American industries.  So far the government runs the banks, mortgage companies, Wall Street, Insurance and now Auto Mfgs. Coming up will be the Energy Industry.  Obama will cause the price of oil to rise by not drilling. Once it hits $200 per barrel and $10 per gallon Obama will use this as an excuse to take over Big Oil. Obama will take over Exxon-Mobile the second largest Company in the World and then he'll take over the rest. The price and availability of oil and gas will be controlled by the government. Once this happens we're done. Obama will have complete control over our lives. Where we go, where we live, what we drive, size of our homes, what temp we can run our a/c and on and on. When Obama gets this power, he'll be unstoppable. It's time for a new revolution.

Wolver.... Yep. People make

Wolver....

Yep.

People make light out of the remarks from Chavez, Pravda, Putin etc about Obama taking over with his Marxist agenda...he is going to out-do them...at quick speed.

Doubling down on stupid is not a particularly good idea. ~Andrew Breitbart