75% want GM and Chrysler to declare bankruptcy

Rather than take more taxpayer money.  Hard to disagree with that!

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Hecker face more money troubles

I posted several times about the high flying Denny Hecker who owned several Chrysler dealerships.  The downturn has hit him hard and he lost his dealerships.  Now comes word that he is being sued for several million dollars in two different lawsuits

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Auto industry stabilization plans

Okay, I think the car makers are beginning to get it BUT I’m sorry, stabilization plan?  That is how they are selling the bailout to Americans?

How about, “Car-makers fill taxpayers’ coffers plan”   You know, something about us, about what we will get out of this.

When businesses go to a lender for a loan, they talk about how the lender will profit from the investment.

Auto industry stabilization plans for all three car makers courtesy Docuticker:

http://www.docuticker.com/

Chrysler sued for discrimination

This lawsuit is interesting for a couple reasons.  The first, is what it reveals about the complex relationships between the various Chrysler entities and their dealers.  There is Chrysler Motors, Chrysler Financial and Chrysler Realty and they all were involved with this particular dealership; agreeing to sell them cars, assist with financing and possibly acquiring the real property of the dealership.  The lawsuit claims that Chrysler attempted to drive out of business the only African American dealership in New York state.  This activity also resulted in credit lines between Chrysler and the dealership to freeze.  We have seen that happen with Dennis Hecker too who is white so its not so clear if the withdrawal of credit is a discriminatory act or borne out of economic and financial necessity.

From a competitive intelligence perpective, this complaint is useful for what it reveals about how the auto industry works and it would be interesting to read other complaints involving other auto-makers and their dealership to learn if these are industry practices.  Its important to note that not all complaints are as factually forthcoming.

Complaint courtesy Courthousenews

Hecker Update: Dealerships closed and jobs lost

Mr. Hecker wasn’t kidding in his lawsuit against Chrysler for cutting off his credit.  Looks like he is in a bad way, having closed six dealerships and sold three more.  400 people have lost their jobs as a result.  I think this is just the beginning of a big contraction for all the auto-related industries that depend on the big three.  Whether they get bailed out or not, if they don’t sell cars, all these related sectors are extremely vulnerable.

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