Sunshine Dodge

SUNSHINE DODGE
I just received a letter from a guy down in Melbourne, FL who is losing his Dodge dealership as of June 9th. The dealership’s franchise rights will be transferred to another family AT NO COST to them as of that date. The letter claimed the current dealership was sitting on a few million dollars in debt from financing inventory (like all car dealers) and a recent re-vamp of their location because Dodge insisted since it was a 5-STAR dealer, and the only one in the Melbourne area. The letter claimed they would lose all this money, and transfer rights with no compensation.

Like most things I receive in my inbox, I thought it was suspicious so I checked SNOPES first. It did not have anything, so I decided to “leg it out” myself. I called the dealership. Unfortunately, the letter is real, this IS going to happen.

This scares the CRAP out of me. We are now taking away property rights from established businesses to transfer them to other people. This is NOT the way it’s supposed to work. This guy’s family bought the franchise in 1974. He is 2nd Generation Dodge Dealer and one of their best considering his 5-STAR rating. So let’s toss him overboard?

The complete idiocy of what is happening with government interference and influence in business is astounding.

Chrysler is being sold part and parcel to FIAT and is apparently shutting down dealers of 30 years to give licenses to someone new. All of this while keeping the unions in place…the unions BTW which cause most companies to be 10-15% less profitable than their non-union competitors.

Today GM announced it would close 9 plants and idle 3 more in the United States. It also announced it would close parts warehouses across the country. It is being asked to decrease production of Cadillac Escalades and Chevy Silverado pickups (their 2 best sellers) in favor of the “VOLT” electric car. The Volt costs $40,000 on the market while the Toyota Prius sells for $25,000. Gee…which one will people buy more of in the beginning?

And FTR, I said “in the beginning” because I can’t imagine it will be long before the government says you MUST by US cars and US cars only. And if you don’t believe it can happen, then you should read the letter below that I just did.

Letter to the Editor

My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.

We currently employ 50+ people and before the economic slowdown we employed ove r 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.

I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.

On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.
Our facility was recently totally renovated at Chrysler’s insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.

HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?

THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY.

This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.

This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.

HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?

I beseech your help, and look forward to your reply. Thank you.

Sincerely,
George C. Joseph President & Owner Sunshine Dodge-Isuzu