elcopone

Cash 4 Clunkers and the Law of Unintended Consequences

Comparing health care and CFC is irresponsible. People die because they do not have health care. People do not die because they do not have a new car. The consequences of doing nothing in health care are dire. The consequences of doing nothing (or something) in the auto industry are minimal.

I agree that their are unintended consequences, but using that logic as a reason to do nothing a archaic and stupid.

AutoNation: Lots to Look Forward to Down the Road

I must disagree with one major assumption you are making,,,,

"That simply means they can convert a Ford (F) or GM (GM) dealership to a Toyota (TM) or Honda (HMC) easily without any landlord or property owner considerations."

Converting a dealership from Ford to a Toyota store is not that simple.

First, Toyota and most of the other foreign manufacturers don't need any new open points. They are extremely hesitant to open new points because of the problem the Big 3 have. So it is unlikely that AN will be granted any additional franchises.

Second, most auto manufacturers are hesitant to grant too many dealerships to any one dealer group. If they did it would give the dealer group too much power and could lead to major headaches in the future. And with the franchise laws as rediculous as they are, the dealer group would have complete control over the automaker.

Third, you are assuming that the location of the closing delaership is suitable for a foreign brand. Usually stores close for demographic reasons. So more likely than not, another dealership is unsustainable at that location, regardless of brand.

Fourth, converting a dealership from a Chevy to a Toyota is very costly. It's not as simple as replacing the big sign out front. Most auto makers have consistent standards they expect every one of their franchises to be built too. After all, they have to differenciate their images. So any dealership conversion would be very costly.