by Gary Bauer: There is a lot of buzz on the blogosphere suggesting that Washington may be on the verge of the biggest political scandal since Watergate. The Wall Street Journal has noticed the developing story too.As we all know, the Obama Administration has taken extraordinary steps to nationalize the auto industry – firing the head of General Motors, publicly attacking bondholders and giving preferential treatment to the unions. As Chrysler is struggling through reorganization, dealer franchise owners are taking a very hard hit. Nearly 800 of them were recently notified that their franchises are being revoked and their stores are being shut.
But the dealer pink slips appeared to be rather arbitrary. So much so that some dealers are suing. Leonard Bellavia, an attorney for the disgruntled dealers, recently deposed the president of Chrysler and issued the following statement: “It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers. It really wasn’t Chrysler’s decision. They are under enormous pressure from the President’s automotive task force.”
What possible considerations could be at play in deciding which dealerships survive and which don’t? To paraphrase a famous movie quote from the Godfather, “It’s not business, it’s just politics.” There appears to be some evidence to support the contention that the dealerships are targeted based upon the political philosophy of the individual owners. Consider the following two examples.
Vern Buchanan is the owner of the 23 dealerships in Florida and North Carolina. In the past decade, Mr. Buchanan donated more than $175,000 to Republican candidates and party committees. He also happens to be Representative Vern Buchanan, a pro-family conservative endorsed by Campaign for Working Families, representing Florida’s 13th Congressional District. His dealerships are being shut down. (Read more about GOP donors on the dealer “hit list.”)
Now, consider the example of RLJ-McLarty-Landers. According to the Washington Examiner, “the RLJ-McLarty-Landers chain of Arkansas and Missouri dealerships aren’t being closed, but many of their local competitors are being eliminated.” The “RLJ” in the partnership refers to Robert L. Johnson, the founder of Black Entertainment Television, who has given more than $100,000 to Democrat candidates and party committees in the past decade. If “Arkansas” and “McLarty” ring a bell, you’ve got a good memory because that is Mack McLarty, Bill Clinton’s former White House Chief of Staff.
It’s too soon to say whether “Dealergate” will make it onto the front pages of the New York Times or Washington Post. But given the way the Left works, it’s not too much of a leap to think politics might be at work. After its loss at the ballot box last year, the militant homosexual movement wasted no time in targeting businesses that supported Proposition 8. It even published an online list of Proposition 8 donors. ACORN is well known for targeting businesses and busing protestors to the homes of corporate executives. And liberal economics is all about politicians and Big Government picking winners and losers, rather than letting the free market decide. See also: Shock! Big Dem Donor Group Allowed to Keep Their 6 Chrysler Dealerships Open ...Update: Their Local Competitors Eliminated!! and Furor Grows Over Partisan Car Dealer Closings
Tags: Arkansas, auto dealers, bankruptcy, Barack Obama, Bill Clinton, car dealer, Chrysler, dealergate, Mack McLarty, Republicans, RLJ, Robert L. Johnson To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
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