The Automobile Dealers Association of Alabama is against the dealership reduction plan put forth by the Obama Auto Task Force. ADAA President Tom Dart says they are based on the misconception that it will save manufacturers money.
In reality U.S. Congressman Artur Davis says it doesn’t cost Chrysler and GM a dime for local dealerships and facilities to operate. “That’s an important point because what some of us fear is happening is that these dealerships are being closed for what frankly are cosmetic reasons. But they’re being closed to make a point that the industry is scaling back, but that point, that cosmetic point could cost many jobs in the State of Alabama and around this country,” said Artur Davis, U.S. Representative.
In Shelby County the owner of Susan Schein Chrysler Dodge and Susan Schein Chevrolet found out last Thursday and Friday that both of those dealerships might have to close- including one as early as next month.
“Total we employ between 70 and 75 individuals and many of them have worked here between 20 and 25 years,” said Susan Schein. “The tragedy here is that the decision to terminate dealers gives the impression that it’s going to help the manufacturers, but in fact it will do nothing but hurt them. They don’t pay for anything here. I pay the mortgage on the building- all the employees pay and benefits packages, we pay taxes and business license fees to the city of Pelham and to the county, we pay property tax, and their decision to terminate a viable business for no significant reason, no one understands,” said Susan Schein.
Bessemer car dealer Jordan Frazier is not immediately affected by the reductions, but he thinks they are bad for business.
“A good dealer should be able to operate and grow and prosper or if they are doing things that are unsuccessful then they would go by the wayside. But for the government to come in- or for the manufacturer to come in- and say we’re going to cut x number of dealers, we don’t see that as the right way to do it,” said Jordan Frazier.
In all, the reduction plans call for 14 Chrysler and about twenty GM dealers in Alabama to close.
Congressman Davis and four other U.S. lawmakers from Alabama have joined a bi-partisan request for more transparency and justification into the closings which would put more than 150,000 people out of work nationwide. “If there is no business necessity for closing these places we have a big problem and congress needs to get to the bottom of it,” said Artur
Davis.
