Thursday, May 28, 2009

Partisan Car Dealership Closings

The Washington Examiner discusses what started as just a little rumbling has gotten more pronounced:
Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans. What started earlier this week as mainly a rumbling on the Right side of the Blogosphere has gathered some steam today with revelations that among the dealers being shut down are a GOP congressman and closing of competitors to a dealership chain partly owned by former Clinton White House chief of staff Mack McLarty.

The basic issue raised here is this: How do we account for the fact millions of dollars were contributed to GOP candidates by Chrysler who are being closed by the government, but only one has been found so far that is being closed that contributed to the Obama campaign in 2008?

Florida Rep. Vern Buchanan learned from a House colleague that his Venice, Florida, dealership is on the hit list. Buchanan also has a Nissan franchise paired with the Chrysler facility in Venice.

"It's an outrage. It's not about me. I'm going to be fine," said Buchanan, the dealership's majority owner. "You're talking over 100,000 jobs. We're supposed to be in the business of creating jobs, not killing jobs," Buchanan told News 10, a local Florida television station.

Buchanan, who succeeded former Rep. Katharine Harris in 2006, reportedly learned of his dealership's termination from Rep.Candace Miller, R-MI. Buchanan owns a total of 23 dealerships in Florida and North Carolina.

Also fueling the controversy is the fact the RLJ-McCarty-Landers chain of Arkansas and Missouri dealerships aren't being closed, but many of their local competitors are being eliminated. Go here for a detailed look at this situation. McClarty is the former Clinton senior aide. The "J" is Robert Johnson, founder of the Black Entertainment Television, a heavy Democratic contributor.
While the evidence appears to be coming in, I think what is missing is a more fundamental question:

Why is the govnerment making this decision? The government, read the Obama Administration, is pushing a fast track bankruptcy deal for Chrysler. The government will be or is the primary owner of Chrysler. While that proposition carries a number of possible problems in and of itself, it begs the question why is a shareholder making these decisions of which dealerships to close?

In normal business, it is the officers and executives of a company that make these decisions, not the shareholders. So why is the government making any decisions about which dealerships to close? No matter what, I think there is an impermissible meddling in corporate affairs here.

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