Tuesday, May 26, 2009

RED ALERT: Did anti-Obama campaign contributions dictate which Chrysler dealers were shuttered? By Doug Ross

Source: http://directorblue.blogspot.com/2009/05/red-alert-did-campaign-contributions.html

May 25, 2009

A tipster alerted me to an interesting assertion. A cursory review by that person showed that many of the Chrysler dealers on the closing list were heavy Republican donors.

To quickly review the situation, I took all dealer owners whose names appeared more than once in the list. And, of those who contributed to political campaigns, every single one had donated almost exclusively to GOP candidates. While this isn't an exhaustive review, it does have some ominous implications if it can be verified.

However, I also found additional research online at Scribd (author unknown), which also appears to point to a highly partisan decision-making process.

Consider the partial list of Chrysler dealership owners, listed below. You'll notice that all were opponents of Barack Obama, most through sponsorship of GOP candidates and organizations, but a handful through Barack's Democrat rivals (Hillary Clinton and John Edwards in 2008, for example).

• Vernon G. Buchanan: $147,450 to GOP candidates and organizations
• Wallace D. Alley and Family: $4,500 to GOP.
• Robert Archer: $4,600 to GOP and conservative causes.
• Homer S. Higginbotham and Family: $2950 to GOP.
• James Auffenberg and Family: $28,000 to GOP; $6,000 to one Democrat candidate.
• Michael Maroone and Family: $60,000 to GOP; $8,500 to two Democrat candidates.
• Jerome Fader: $6,500 to Democrats; $2,500 to Independent Joe Lieberman.
• Stephen Fay and Family: $13,500 to GOP.
• William Numrich: $20,000 to GOP.
• Robert Carver: $10,000 to Democrats including $1,950 to Hillary Clinton, nothing to Barack Obama.

• Robert and Linda Rohrman: $24,000 to GOP.
• Frank Boucher, Jr. and Family: $18,000 to GOP, $1,000 to one Democrat candidate.
• Scott Bossier: $4,300 to GOP.
• Todd Reardon: $17,000 to GOP; $2,000 to one Democrat candidate.
• Russ Darrow and Family: $78,000 to GOP.
• Bradford Deery and Family: $24,700 to GOP.
• Charles Gabus and Family: $30,000 to GOP.
• Brian Smith: $15,500 to GOP.
• Michael Schlossman: $14,000 to GOP; $14,000 to three Democrats ($12,500 to Sen. Russ Feingold).
• Don Hill: $11,000 to GOP; $12,800 to conservative incumbent Rep. Heath Shuler.

• Don Miller: $2,000 to GOP; $1,000 to Feingold.
• Eddie Cordes: $2,150 to GOP.
• Robert Edwards: $1,100 to GOP.
• James Crowley: $19,100 to GOP.
• Stanley Graff: $2,200 to John Edwards (2008 Presidential Run); $500 to GOP.
• John Stewart: $10,500 to GOP.
• John Fitzgerald and Family: $4,600 to John McCain (2008); $2,000 to Hillary Clinton (2008); nothing to Barack Obama.
• William Churchill and Family: $3,500 to GOP.
• Thomas Ganley: $9.450 to GOP.
• Gary Miller: $20,000 to GOP.

• Kevin and Gene Beltz: $18,500 to GOP.
• Arthur Grayson: $14,000 to GOP.
• Eric Grubbs and Family: $26,000 to GOP.
• Michael Leep and Family: $19,500 to GOP; $4,800 to three Democrats including Sen. Evan Bayh.
• Harry Green, Jr.: $10,000 to GOP.
• Ronald Hoover: $5,250 to GOP.
• Ray Huffines and Family: $18,500 to GOP.
• John O. Stevenson: $1,500 to GOP.
• James Marsh: $8,200 to GOP.
• Max Pearson and Family: $112,000 to GOP.

I have thus far found only a single Obama donor (and a minor one at that: $200 from Jeffrey Hunter of Waco, Texas) on the closing list.

Chrysler claimed that its formula for determining whether a dealership should close or not included "sales volume, customer service scores, local market share and average household income in the immediate area."

In fact, there may have been other criteria involved: politics may have played a part. If this data can be validated, it would appear to be further proof that the Obama administration is willing to step over any line to advance its agenda.

It bodes poorly for America and the rule of law.


Update: Noteworthy comments from Cars.com's blogs:

As an employee of one of the affected dealerships... First, this isn't just Chrysler's decision. They were forced into bankruptcy by President Obama. When Chrysler emerges from bankruptcy the Federal Government will be a junior partner in the new Chrysler. This is SOCIALISM! Wake up people! This isn't about business it's about politics and control. My dealership is in the top 125 out of the 3500 plus dealerships nationwide...yet we are on the list. We are not small nor are we rural. We are in a large major metropolitan area. Our new vehicle inventory alone is well over $4.0 million. Is that small? Secondly, Chrysler is already "shopping" for dealers to take over the open "points" (another name for franchise) left by the closed dealerships. Again, you think this is just business. Lastly, and more importantly, every state has franchise law in affect that protect companies from this very thing - being forced out of business under the cloak of bankruptcy with out the benefit of due process. This is illegal!

This is so much more than "just business". This is about control and power by our present administration in Washington. An administration that will stop at nothing to bring complete Socialism to this once great country. Wake up people or get in line now to "drink the Kool-Aid".

I just saw on the list that my local dealership, Wilson Dodge is closing. This is very shocking to me since they are the oldest and most recognized Dodge, Chrysler, Jeep dealer in the metro. This is really sad because these are great people with excellent service...

...There was an interview on the news this evening with the owner of the dealership that is going to be closed in my area where I learned that the DCJ dealership they competed with in my area is factory owned. So, instead of closing their own, they choose to close a successful franchisee. That's #$@?ed up IMO! ...

Update II: Deseret News, 14 May 2009, "Chrysler dealership closures may hurt small-town economies":

"I've been around this forever, and there's no rhyme or reason," Fred Barber, owner of Barber Brothers Motors in Spanish Fork, said Thursday.

...Why were Barber's Chrysler dealership and nine others from Utah among the 789 dealerships nationwide singled out by Chrysler LLC, in bankruptcy-court filings, to be eliminated by June 9? Was there any rhyme or reason to why certain dealerships were selected and others not? What's next for the targeted dealerships, and what will be the ripple effects?

"This is as close to socialism as I've seen — we've got the government running the automotive industry," he added.

Jim Lunt, vice president of Lunt Motor Co. in Cedar City, said employees at his Main Street dealership are anxious, while the owners feel "abandoned."

"It's like they chopped out your legs," Lunt said. "We haven't looked at other manufacturers. We've stuck with Chrysler through thick and thin. You kind of feel like you've been thrown overboard."

Update III: APP, 18 May 2009, "Ousted Chrysler dealers prepare legal fight":

Michael Bernstein, an attorney with Arnold & Porter who represents the Chrysler National Dealer Council, said the dealers may offer a number of objections to the plan in U.S. bankruptcy court, and that the case will enter some uncharted legal territory.

...Bernstein said under bankruptcy law Chrysler would have to show how its "reasonable exercise of business judgment" led to the closing list. While the company cited a bevy of standards by which it chose dealerships, Bernstein said it was noteworthy that Chrysler didn't cite costs.

"There's no cost to Chrysler associated with dealers. Dealers are a source of revenue," Bernstein said. "A lot of people were surprised by the number of dealers Chrysler is proposing to reject..."


Hat tip: Bob. Thanks!

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