• Mar 12, 2010
We have no proof that General Motors is getting payback on the three dealers who founded the Committee to Restore Dealer Rights (CRDR), Tammy Darvish, Jack Fitzgerald and Alan Spitzer. But we do know that retribution is a game often played by all sides, and that Darvish, Fitzgerald and Spitzer definitely believe GM has taken the first shot.

When GM announced nearly 2,000 dealer closures last year, the CRDR was created to lobby Congress to to invalidate the move. When that didn't work, the CRDR was able to get an arbitration law passed that gave dealers an opening to reinstatement. Of the 1,350 dealers marked for death, 1,160 took the opportunity for arbitration. Of that 1,160, there were 661 retroactively reinstated. However, of that 661, none include seven of the ten dealerships owned by Darvish, Fitzgerald and Spitzer that were slated to close.

GM has left the door ajar yet, saying that the remaining 499 dealers can contact the automaker for reinstatement or compensation and "GM would consider it." It is surely the path that the three leaders of the CRDR will take, but from this vantage point it looks like there might not be a pot of gold at the end of it.

[Source: Automotive News – sub. req'd. | Image: Mark Ralston/Getty]


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    • 1 Second Ago
  • 31 Comments
      • 4 Years Ago
      Saying that we no longer have a free market isn't an excuse for more oppressive regulation. that is justification for a RETURN to free market principles and limited government. Get our free market BACK.

      Einstein said that repeating the same actions over and over, while expecting a different result, was the definition of 'insanity.'

      Trying minute degrees of difference in big government policies, under R or D guise, never works. It never has, in all of human history.

      Small government worked, until people started getting power hungry again. That is what LIMITS ON GOVERNMENT were supposed to keep in check, and keep the power in the hands of the individual people on the ground to manage and control themselves.

      A government-involved corporation is not supposed to exist in the US.

      A private corporation should be free to make bad decisions, and FAIL FOR THEM, as a consequence.

      The government removed the consequence, and hence we get more bad decisions, with more aplomb, because there is no repercussion.

      The repercussion should be that any self-respecting American who believes that people are the core of this country, not government... should not abide a government controlled enterprise, and make the economic consequence felt anyway.

      I will not buy a product by an american company, that is controlled by the US Government, against the foundation of it by the US Constitution.

      Other countries are other countries, and if they do things illegally by their laws, they should similarly make it known. If they think private enterprise shouldn't be private, and such government control is legal, then it is legal. That doesn't make it correct or moral, but their legal system is for them to decide.

      Japan is Japan. S.Korea is S.Korea. Germany is Germany. This is the United States of America, and we are supposed to be free of government management in otherwise non-criminal economic activity.
        • 4 Years Ago
        Man, I hope you never need to buy a mortgage, or even put money in a bank...
      • 4 Years Ago
      Do people still think that GM needs to reinstate the dregs of it's dealer body - a dealer body that by any sensible analysis is still about 20% too large?

      GM should have done what Chrysler did instead of allowing these dealers go on as walking dead they should have killed them on the spot. Painful but necessary - now they have to deal with part of what put them in bankruptcy in the first place. Dealers that can't meet customer satisfaction or sell enough cars to be viable.

      Looks like most of the "meddling" from the goverment is coming from well heeled Republicans, not from the Obama administration.
        • 4 Years Ago
        Lousy dealers live off of the overflow of good dealers in a good economy and they are the first to go during a slow economy. They don't need any help from the manufacturer. It takes care of itself.

        If a dealer did not have the customer base to survive during this economy, they would not be fighting GM and Chrysler right now. They would have gladly closed the doors. The expenses of an auto dealer over the course of a year could rival the GDP of a third world country. Prime real estate, utilities, insurance, employee benefits, inventory, advertising, payroll, etc. are not free. The manufacturer does not provide any of these things. The brochures the customer wants for free cost the dealer, the manufacturer does not give them to the dealer. All of these things are the cost of doing business and every dealer understands that. So if a dealer were losing money why would they fight it?

        Very few dealerships are costing GM money. They intend on reopening most of the stores they are closing. No dealer received one dollar of bail out money but GM was REWARDED for failure. The nice guys begging for cash in DC quickly became arrogant jerks with some cash in their pocket.

        • 4 Years Ago
        Quote: ""Do I need to remind you that the Bush republican dogma was what drove this country's ecomomy nose first into the ground?""

        Bull. It was bi-partisanship at it's finest that launched Great Depression II.

        Liberal Democrats like Frank and Dodd brough us the subprime mortage meltdown with the Community Reinvestment Act that forced banks to lend to deadbeats,

        It was Republicans like Phil Grahm and Tom DeLay that brought us a repeal of Glass-Stegall and a removal of leverage limits,

        It was the Bush Administration that implemented laws that prevented State Attorney Generals from going after mortage fraud by borrowers and banks,

        And don't forget that the ongoing bank bailouts through the Fed are payback from the Obama administration for all of the financial support he got from the Wall St. banks during his run for the Whitehouse. The number one recipient of campaign contributions from Goldman-Sachs was Barrack Obama.

        You need to get beyond the partisan shouting and point scoring.
        • 4 Years Ago
        Of course Repooblicans are behind it. The American public, including a lot of bloggers here, have a *really* short memory.

        Do I need to remind you that the Bush republican dogma was what drove this country's ecomomy nose first into the ground?
      • 4 Years Ago
      Yet another reason to buy a Honda.
        • 4 Years Ago
        Because there are once again more GM dealerships?

        That's why you should buy a honda?

        I know this is a bit of a CF, but if GM feels that keeping these dealerships up and running (and allowing many Americans to keep their jobs) will help them and not hurt them...more power to them.
      • 4 Years Ago
      RenCen in Detroit has the largest Human solid waste apperture concentration per square meter on planet Earth!
        • 4 Years Ago
        Really? I'd say it's the 2' x 2' that your ass is planted in.
      • 4 Years Ago
      There is no free-market...
      • 4 Years Ago
      Obama people being vindictive? Noooooooooo way! Welcome to Government Motors.

      /sarcasm
        • 4 Years Ago
        The whole sarcastic "Government Motors" thing is really getting old.

        If the Bush and Obama Administrations (yes, both the GOP and Democratic Presidents) didn't intervene, there definitely wouldn't be a Chrysler alive today and GM probably wouldn't be in business.

        I didn't like the bail-out either, but pragmatism somehow needs to rule the day than pure ideology. Give me a break.
      • 4 Years Ago
      I'm surprised Autoblog would write another speculative, biased story after getting burned so bad on the Ram logo / high school story.

      Maybe it's time to learn a lesson, Autoblog.
      • 4 Years Ago
      MK aren't you being just a little bit disingenuous about government funding and the source of certain monthly pay checks??
      • 4 Years Ago
      Have they got a good lawyer? If GM can make a profit, maybe they can get some of it. Since they are now part of the government, and the government wants to control everything, and make sure "fairness" prevails, maybe they can get the government to sue itself!
        • 4 Years Ago
        The government sues itself and pays off the debt. Hey it's worth a shot!
      • 4 Years Ago
      I've worked in car dealers for the first 15 years of my working life, and a LOT of the owners are indeed the "dregs" that were mentioned earlier.
      • 4 Years Ago
      Geesh, i wonder why Tammy? Quote
      "Toyota owners are loyal, chevy owners would switch for $10.00 bucks"
      She is evil....
      Spitzer's..always, argued with the factory, in all his stores from Ohio to Homestead,FL..
      Constantly was at odds with GM and Chrysler, so again not surprised.
      • 4 Years Ago
      it's a business, agree or not, it is a decision made by GM and management to get rid of under performing dealerships and reduce overlap. Did they use common sense when they picked which dealerships to keep open? who knows. I know in the Midwest were the big 3 had their largest stronghold GM and Chrysler and even Ford have closed a lot of dealerships, and in most cases they were the only dealerships in town. so now everyone will be driving to the big city to look at cars, right next to the Honda and Toyota lots... and there is no local service center to act as an incentive to buy from the guy in town so you can get the oil changed just down the road. Seems like the door is open for Hyundai and Kia to step in to some small communities and start to erode the only base the big 3 had left. Epically stupid move. But i still don't see the point in trying to fight this, close up shop, call VW and try to get a new franchise. GM should have converted all there dealerships to GM dealerships, and sold either chevy, pontiac, saturn and buick, or cadillac saab GMC (hummers could have been folded into chevy trucks). eliminate all the badge engineering and then we could have kept the only notable pontiacs, the unique saturns, and saabs and got rid of the craptastic chevy/buick/saturn/pontiac models that are outdated uninspiring and redundant.

      maybe i'm just bitter about the G8 and solstice!




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