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    Dealing out a bunch of hooey and driving me mad ...

    By Deadman on Fri, 11/14/2008 - 5:02pm | Politics, Business

    It's bad enough the government will soon be doling out billions and billions of taxpayer dollars to bail out the bloated, mismanaged U.S. auto industry.

    But please, please, do not give any of that money to the nation's car dealers.

    According to a Yahoo story, an auto bailout package is likely to pass in large part because of pressure from the American auto dealership lobby. Even worse, a spokesman for the National Automobile Dealers Association says he wants dealers to get some of that money.

    "That legislation needs to operate to ensure the presence and the viability of the dealer network. The two go hand-in-hand. You can't have one without the other," the spokesman said. Another industry lobbyist said dealers are bringing a 'lot of heat' on legislators to get a deal passed.

    Ugh. I can't stand the car dealership lobby. There are thousands of car dealerships in the U.S., in almost every district in the nation. They have a ton of money and yield far too much influence in our political system. The automobile dealer network is an inefficient, outdated business model which has only continued to thrive because of its successful political wrangling.

    You want to know why you can't go on the Internet today and buy a car directly from a manufacturer (or even from a dealer)? Because in most states, the auto dealer lobby has made sure that direct selling of cars is illegal. The best you can do is go to a site and ask for a quote from your local dealer, who will undoubtedly try and upsell you a whole bunch of stuff you don't need as soon as you get to her lot.

    I've only had to go through the car purchase process once but I remember it being about as unpleasant as can be, as I was quite sure I was being screwed in a thousand different ways. The Internet has helped level the information playing field somewhat, but it could have done so much more if car dealers hadn't successfully resisted almost all efforts at innovation.

    Unfortunately for the US taxpayer, it's mostly business as usual ... on their lots AND in the hallways of Congress.

    Topics: 
    Politics
    Business

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    Last Thanksgiving, my cousin took her kids shopping on the day after Thanksgiving. She'd never done it before, but there was something the kids just had to have, so they got up really freaking early and stood in the cold in line at Toys R Us. When the store opened, an actual fist fight broke out as the shoppers pushed their way into the store so they could be the first to get whatever it is that they had to have at the soon-to-be-history low price. Thankfully, I had the good sense to stay in bed, oblivious to the feeding frenzy that was happening at stores throughout my town.

    That's what I'm reminded of since the corporate barons got their first sniff of government hand outs. It's a free-for-all, only it's not free. Not for the taxpayers, anyway.

    The next time there is some sort of a natural, or unnatural, disaster that leads to widespread looting in a poor neighborhood, the first corporate exec that says ANYTHING about it should get punched. Hard. In the face.


    by Orlando on Fri, 11/14/2008 - 5:34pm

    For what it's worth, the NYT claimed that the chances of passage are slim.


    by Michael Wolraich on Fri, 11/14/2008 - 5:58pm

    This cannot be real.  Freaking car dealers are part of the problem with the american auto industry.  What a bunch of thieves.  You know who is going to start fweeeping next, don't you?  The pharmaceutical companies - watch it.  I was half heartedly supporting a bailout for the auto industry just for the pensioners but if the dealers are getting any NO WAY.  Orlando is right - watch them all jump in line for a bailout and in two years they will be screaming  they are fettered by too much socialist government oversight.  This sucks. 


    by Bluesplashy on Fri, 11/14/2008 - 5:58pm

    While I always respect the rights of others to hold an opinion that may differ from my own I find it odd that your diatribe against the auto industry in general, and dealers in particular, is shown on a web page with google ads for those very manufacturers and dealers. When the readers of your blog click on them you are, of course, compensated via google adsense. Why not exclude those ads and put your money where your rhetoric lies?


    by Anonymous (not verified) on Sat, 12/06/2008 - 1:37pm

    Thanks, Anonymous. We don't choose the ads. They're selected by google-magic based on the content of the page, which is why auto ads were probably chosen for this page. I might add on Deadman's behalf that I don't think he wants the American auto dealers to shut their doors but rather to become more efficient. However, I'll discuss with my fellow dagbloggers the option of returning the $11.77 we have earned from our ads this year.


    by Michael Wolraich on Sat, 12/06/2008 - 3:50pm

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